Forestry and the Emissions Trading Scheme

Stats NZ emissions report 2007 - 2017

A recent report produced by Stats NZ shows that household emissions of greenhouse gases increased 19.3% from 2007 to 2017, due primarily to increased road transport.

The report also notes that while dairy farming recorded increased emissions during 2007-2017, all other agricultural sectors recorded decreases over the same period, and the agriculture sector overall decreased emissions by approximately 1%. Forestry and logging emissions were up 54.1% over this period.

Price update

With the 31 May surrender deadline now passed, and recent announcements suggesting the $25 Fixed Price Option (FPO) is to stay for the time being, NZU buyers have retreated somewhat and led the price down as low as $22.50 during June. This is a drop of more than $3.00 or 12% in little more than a month.

There has been a small recovery through the end of June and into July, with current pricing around $23.00. Market commentators don’t seem to expect pricing to recover quickly and this is a historically quiet time of the year for trading.