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Forestry and the Emissions Trading Scheme

After seeing NZU prices fall by almost a dollar in early July on the back of Tiwai Point’s news of an intended closure, prices have rallied again, with prices recovering to a new high of $34.15 in recent days.

This is getting very close to the new Fixed Price Option of $35 that emitters have available for this year’s emissions, so it will be interesting to see if it pushes higher in the short term.

Forestry sellers in particular seems happy to sit on units right now, with many believing that the upside potential is worth the wait. But there will always be those that need to sell, and the hope is that liquidity will remain in the market as we head towards the next surrender deadline.