Carbon Market Update

NZUs pushed through the $20 mark last week for the first time this year. This has been brought about by a strengthening CER price in NZ dollar terms and the lack of volume coming onto the market. Recently CERs have capped the NZU price as compliance buyers can use these within the NZETS, but the strengthening price has made NZUs a more attractive proposition for purchasers. Breaking through the $20 mark should start attracting more interest from sellers, so more volume may start coming onto the market over the next few weeks, especially with the recent issuance of post-1989 NZUs and the pre-1990 allocation.