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Forestry and the Emissions Trading Scheme

Price Update

NZU prices have softened somewhat through the end of February and into March, as demand from major compliance buyers starts to taper, and small-scale sellers present new allocations to the market as they complete their emissions returns. NZUs have traded consistently around $20.90 - $21.00 since the beginning of March.

We are now entering a traditionally quiet time for trading, as emitters should largely be fulfilled for their May surrender.

In Europe, EUA prices have doubled since mid-2017! Trading has been influenced by European policymakers, with France recently calling for the EU to set a carbon price floor of $25-$30 Euros per tonne for power generation (more here).

Figure 1: Recent Carbon Prices - NZ$/t CO2e – Real (CPI adjusted)