Carbon Market/Carbon Forestry Update

Carbon Market

NZUs are currently trading around the $19 mark which is a fall from $20 late last year. The international CER price continues to cap NZUs as these units can be used by compliance buyers within the NZETS. This also is the time of year when post-1989 NZUs get issued and this combined with the pre-1990 allocation taking place is generating a regular supply.

It would appear that most emitters have completed their NZU acquisitions for 2010 liabilities which have to be surrendered by May 2011. Demand will now come from emitters seeking to fulfill their 2011 requirements with a surrender date of May 2012. PF Olsen is starting to field enquiries from some large emitters seeking to purchase NZUs.

How Do I Sell My NZUs?

A question we often get from forest owners who have received their post-1989 NZUs or pre-1990 allocation is "How do I sell my NZUs?" One option available is the PF Olsen NZU aggregation scheme. This is where PF Olsen aggregate forest owners NZUs into a large sale package and offers are sought from buyers. We believe the key to obtaining best price for your NZUs is keeping transaction costs (including brokerage fees) to a minimum and attracting the interest of the large carbon emitters, both of which can be achieved with scale. If you would like to know more please contact Colin Hercus by emailing colin.hercus@pfolsen.com.