Emitters captured within the ETS still have to pay for their greenhouse gas emissions – but at the moment it is significantly cheaper to buy carbon units from elsewhere, such as forestry owners.<\/p>\n
The minimum price carbon units could be sold for in the auction was $68, but emitters have been able to buy elsewhere for as little as $40 recently.<\/p>\n
Brunel said the market had been spooked most recently by the Government\u2019s decision last month to \u201cde-couple\u201d the ETS from New Zealand\u2019s Paris Agreement pledges.<\/p>\n
\u201cThey could have done it quite differently, instead of just going, \u2018Surprise!\u2019\u201d<\/p>\n
Markets hate uncertainty, he said.<\/p>\n
\u201cIt was announced without a lot behind it, [or] the rationale for doing it, so it gave the market concern that there were changes happening to the ETS that weren\u2019t well telegraphed – and the market reacted accordingly.\u201d<\/p>\n
However, the market had been weak all year.<\/p>\n
\u201cThere\u2019s been a number of things that have fed into it … The fact that [the Government] reduced the methane target, the fact that mandatory reporting requirements were weakened, just the continual mantra that we\u2019re not going to do anything in offshore mitigation to meet our [2030 Paris target] kind of sent the signal to the marketplace that … the Government was weakening overall on climate change policy,\u201d Brunel said.<\/p>\n
That had not been helped by \u201cquips from minor parties that we should withdraw from Paris\u201d.<\/p>\n
The units from all 2025 auctions will now be cancelled out of the ETS, meaning they will not be available to emitters in subsequent years.<\/p>\n
– RNZ<\/p>\n","protected":false},"excerpt":{"rendered":"Emitters captured within the ETS still have to pay for their greenhouse gas emissions – but at the…\n","protected":false},"author":2,"featured_media":169484,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[1978,138,40605,12700,1332,5904,2517,111,78751,139,69,3170,13311,58218,61,780,8443,1530],"class_list":{"0":"post-169483","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-auction","9":"tag-business","10":"tag-carbon","11":"tag-emissions","12":"tag-fails","13":"tag-final","14":"tag-kate","15":"tag-new-zealand","16":"tag-newton","17":"tag-newzealand","18":"tag-nz","19":"tag-scheme","20":"tag-sell","21":"tag-single","22":"tag-to","23":"tag-trading","24":"tag-unit","25":"tag-years"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/169483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=169483"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/169483\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/169484"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=169483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=169483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=169483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}