Carbon Market Update

NZUs have fallen slightly from last month and slipped below $20, currently trading around the $19.70 to $19.90. The 31 May surrender date for emitters to surrender units for their 2010 emissions did not bring about any last minute buying as emitters had already filled their quota for surrender. There appears to be a standoff between sellers who have a price expectation of over $20 and buyers who have 11 months until the next surrender deadline which has resulted in very light trading. All the while supply of NZUs continues to increase with the issuance of the pre-1990 Forestry Allocation.