Carbon market update
Wednesday 17 Jun 2020Thanks to Carbon Match for this NZU Update - Last week saw NZUs push up to $32 flat by Thursday before dipping a little, last trade $31.75 (Friday).
That is a rise of about $7 over ten trading sessions and the most significant push upward in such a short period of time that we have seen in ten years of the ETS. It will be interesting to see what happens this week.
NZUs have now well surpassed the previous all-time ETS high of $29.25, which was in mid January earlier this year and followed the pre-Christmas announcement by the Government that it was consulting on significant proposed changes to ETS settings.
Delivering on those reforms, the Climate Change Response (Emissions Trading Reform) Amendment Bill is looking likely to have its third reading shortly (check this link for details).
For those who haven't been keeping up with it, it is a key change to that Bill that has driven the carbon price to these new highs - specifically the re-instatement of the plan to increase what had been a $25 fixed price option to $35.
While the consultation pre-Christmas had mooted that idea, the $35 change was omitted from the first and second readings of the Bill, and was subsequently introduced in an SOP to the Bill, released only on 2nd June.
Carbon Match, NZUs currently bid $31.55 and offered $32.00 - check back from 1pm for live pricing once the site is open.
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