Forestry and the Emissions Trading Scheme

Auctioning tender awarded

A joint bid by the New Zealand Exchange (NZX) and the European Energy Exchange (EEX) has been selected to build and operate the government’s auction service for the New Zealand Emissions Trading Scheme (NZETS). Development of the auction platform is expected to be completed by the first scheduled auction in March 2021.

ETS registrations

Interest to register eligible post-1989 forest land in the ETS is starting to pick up substantially. Forest owners want to ensure they are registered prior to the end of 2022 so as not to miss out on any units. PF Olsen want to plan this workload to ensure we have adequate resources to hand. We will be contacting clients over the next few weeks to discuss, but feel free to contact Mike Duckett if you want to lock this work in now.

Early AGS grantees are starting to come off contract now. Under new averaging rules there could still be significant benefit in registering this land in the ETS. Note that eligibility will need to be assessed again. Get in touch with your PF Olsen manager if you want to look into this further.

Price update

Prices hovered around $35 for the whole of October, and have been trading above this mark for the last two weeks. Recent trading has been as high as $35.30, and there still seems to be little liquidity in the market right now.