Forestry and the Emissions Trading Scheme

Price update

During September NZU prices rose from $34 to just over $35, and have settled (as at early October) at around $34.85. There has been little action in the market, with the only news of note being the release of regulations related to auctioning. These regulations confirm the timing of auctions, volumes to be auctioned, reserve price floor ($20 in 2021) and cost-containment reserve trigger price ($50 in 2021). It is worth noting that the proposed “technical reserve price” has not been included in the regulations at this stage, meaning that the $20 floor will be the only influence at the low end of auction pricing. The regulations can be found here.