New Zealand Carbon Market Remains at Low Volumes as Emitters Await Credits

The spot price for emissions credits in New Zealand’s carbon market remained unchanged at NZ$18.75 ($13.41) per ton this week as emitters waited for more supply to reach the market, Auckland-based broker OMFinancial Ltd. said.

Greenhouse gas emitters are waiting for credits backed by forests planted before 1990 to be approved by the government for trading, OMFinancial said in an e-mailed statement today.

In New Zealand’s carbon trading system, credits are divided between units backed by forests planted before 1990 and after, in accordance with the Kyoto Protocol. The government is still allocating units to farmers with pre-1990 forests.

Companies that emit greenhouse gases have the option to pay a carbon tax of NZ$25 per ton of emissions or buy carbon credits.

“Volume in spot continues to be hard to find - the trades have been small this week and in the high $18s,” OMFinancial said in the statement.

The government is also issuing credits to companies facing competition from countries where firms aren’t penalized by a carbon tax. The allowances, called Emissions Intensive Trade Exposed units, or EITEs, can also be traded.

To contact the reporter on this story: Stuart Biggs in Tokyo at sbiggs3@bloomberg.net.

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