NZUs hit new highs

Friday 10 Sep 2021

 
Last week was a big week for the NZ carbon market. Wednesday's Government auction saw all scheduled volume (4.75 million NZUs) and the entire cost containment of 7 million taken out at $53.85. This means the last auction of the year will take place with no cost containment reserve.

That news saw the secondary market kick on up immediately, closing at $59.00 the same evening. And by close of play Friday on Carbon Match, NZUs had changed hands at $60.00. So, what next? There is a lot going on in the space, with the market honed in on any new filament of information. Two consultations are underway - one on ETS governance and another on the reform of the industrial allocation. Both of those can be found here and responses are due no later than 17 September.

Meanwhile, the Government's own economy-wide emissions reduction plan for New Zealand is keenly anticipated, and expected to draw on efforts and analysis from almost every part of the Government. Public consultation on the plan was originally expected to run from late August to early October, but appears to have been held up with the Delta outbreak.

At $60, NZUs are up $10 over the last fortnight, and $20 since early June, just three months ago. Stay tuned.

Source: Carbon Match.

Share |



Copyright 2004-2021 © Innovatek Ltd. All rights reserved.