Carbon Market: Update from Carbon Match
Wednesday 14 Feb 2018NZUs softened just a touch over the course of Monday, from $21.55 on the open to a last trade of $21.50, best bid yesterday $21.45.
Yesterday saw some sellers hit bids rather than trying to haggle. But many say they’re in no rush and are interested to see the outcome of consultation that is expected on a “different” price ceiling.
In the Regulatory Impact Statement released in December last year the Government clearly identified the current fixed price option of $25 as being problematic. In short it’s a free but valuable option being offered to emitters, but nobody is offering the New Zealand Government the same and international carbon prices in the 2020s could well surpass this level.
Four potential solutions were identified, 3 of which contemplated increasing the value of the safeguard, and one of which would see the safeguard removed altogether.
That document noted that each of the four options would require amendment to the Climate Change Response Act, and timelines made public appear to indicate that such legislative change might take place sometime in 2019.
But that’s not that far away. Emitters wanting certainty might want to get out there and create it for themselves.
Source: Carbon Match
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