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New Zealand Carbon Market Unchanged at Low Volumes, Broker Says
2010-09-03 02:57:29.101 GMT
By Stuart Biggs
Sept. 3 (Bloomberg) -- The spot price for emissions credits
in New Zealand's carbon market remained unchanged at NZ$18.75
($13.41) per ton this week as emitters waited for more supply to
reach the market, Auckland-based broker OMFinancial Ltd. said.
Greenhouse gas emitters are waiting for credits backed by
forests planted before 1990 to be approved by the government for
trading, OMFinancial said in an e-mailed statement today.
In New Zealand's carbon trading system, credits are divided
between units backed by forests planted before 1990 and after,
in accordance with the Kyoto Protocol. The government is still
allocating units to farmers with pre-1990 forests.
Companies that emit greenhouse gases have the option to pay
a carbon tax of NZ$25 per ton of emissions or buy carbon credits.
"Volume in spot continues to be hard to find - the trades
have been small this week and in the high $18s," OMFinancial
said in the statement.
The government is also issuing credits to companies facing
competition from countries where firms aren't penalized by a
carbon tax. The allowances, called Emissions Intensive Trade
Exposed units, or EITEs, can also be traded.
For Related News and Information:
Bloomberg New Energy Finance Carbon Model: CARX <GO>
Emissions Market Monitor: EMMK <GO>
Most-read environmental news: MNI ENV <GO>
Most-read renewable-energy news: MNI ALTNRG <GO>
--Editors: Amit Prakash, John Chacko.
To contact the reporter on this story:
Stuart Biggs in Tokyo at +81-3-3201-3093 or
sbiggs3@bloomberg.net.
To contact the editor responsible for this story:
Reed Landberg at +44-20-7330-7862 or landberg@bloomberg.net.
