NZX signals $20m writedown from carbon trading venture

Sharemarket operator NZX is signalling a $19.9 million hit to its balance sheet from a carbon trading business it has sold, blaming a lower priority given to carbon trading and "lack of a global political agenda around carbon."

The reduction is to the valuation on its balance sheet for a prospective 2012 performance payment from the sale of its TZ1 Registry business last year. It will appear as a reduction in the gain on disposition of assets.

"Macro conditions have moved against carbon trading compared with where the world was when the registry business was sold," NZX said in a statement after the sharemarket closed.

"While some corporates – including key New Zealand companies -–continue to assign a high priority to 
environmental concerns, in general the lack of a global political agenda around carbon, coupled with the global financial crisis, has made such 'discretionary' expenditure a lot more contestable and scarce."

Falling industrial output had also reduced the corporate need for voluntary carbon issuance activity, which a carbon registry business revenue model depended on.

The TZ1 registry business continued to lead the field in customer acquisition worldwide. NZX
remained confident around the long-term success of this business.

NZX said in July last year it was selling its TZ1 Registry business to global financial services company Markit overnight for $US37.1 million ($NZ26 million).

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Show us the evidence Simon M? Do you know more than the bulk of leading scientists worldewide? Have you a secret you would like to share? Or are you perhaps simply another ostrich afraid of reality?


Great story NBR, lets have a few of the wide boy names (in case of their next batch of snake oil) to attach to this while we prepare the tar and feathers.


<i>overnight for $US37.1 million ($NZ26 million)</i>

If that was last nights exchange rate, I can't wait for next weeks NBR exclusive on the Fonterra payout forecast ;)

To the topic at hand, this loss to the NZX - which should have known better than getting involved in this, the carbon market being the only man-made aspect of climate change - is minor compared to the cost to the NZ population when our ETS starts 1 July.

Indeed, to copy a portion of my own guest post to Notpc's blog ( ):

<i> "Citing financial worries, the State of Arizona has backed out of a broad regional effort to limit greenhouse gas emissions in the West through a cap-and-trade system.
"In an executive order issued last week, Gov. Jan Brewer, a Republican, said a cap-and-trade system ­ which would impose mandatory caps on emissions and allow pollution credits to be traded among companies ­ would cripple Arizona's economy."</i>

Note those last words: "would cripple Arizona's economy."

And yet New Zealands ETS is still legislated to start July 1 this year, with no political will to change it, despite the Warmists' argument melting quicker than the polar ice cap, which, ironically, is not melting at all. So on top of GST increases, add increased energy charges to your personal budgets. For a country where households are much more indebted as a percentage of disposable income than the United States ( ) this government is set to make the lives of hard working individuals in New Zealand even more uncomfortable. '

Sally, spend a bit of time on this thread:

Are you not at all worried by the inferences to be drawn from Climategate and the almost daily backtracking that bureaucratic body - not scientific - the IPCC is having to make?

And even if you accept AGW (I don't), all the major proponents of cap-and-trade openly admit it would do nothing to change the climate. NZ's ETS is madness: politically, philosophically, and based on the facts, scientifically.


Sally. You appear ill-informed and or way behind the times. Perhaps you may need do some homework. As for 'consensus' - most prominent scientists rebuke any notion of global warming. As for reality it's those that are complicit to or with the global warming scam that fear reality in favour of societal control.


The net effect of ETS is an elusive component to GST. It's on all transactions. The net cost, across the board gives you close 17.5% on all transactions come July 1st. This is inclusive of the proposed hike of 2.5%. Given that NZ's average debt over income is 159% and rising. That being - the proposed GST/ETS deception relates to central concern of this article.

Just for the record - I spent 6 months analysing ETS. It holds NO economic opportunity through 'clean' solutions. It holds no merit as a solution to carbon - even if carbon was a problem - which its not.
Point: You can't force emergent behaviours on a society that rejects the cause that you force. Aka - the point of this article.

The ETS is flawed and was corruptly rushed through parliament. Go check the process they undertook. Go check the analysis THEY did. Its wishy washy nonsense. Go check the final drafts.

Then realise the core issue is the planned back-ground hikes in ETS, over the next 5 years, as related and detailed in the carbon-fraud-treaty and the establishment of a world government.

Go find the document. Read it. It think you'll find the economic destabilisation of the "west" called also be called, lovingly, Marxism. Add that to Mark's valid comments and go and get Niwa's REAL temp data. Are you then proposing money is an effective instrument to solve complex natural-ecological-environmental climatic concerns? Particularly when the problem doesn't exist or, at best, not understood?

Put simply, if you believe there is any sincerity in ETS, i'm sorry to say you are being strung along.


It looks like the NZX has been caught trying climb on the "latest band wagon " . All these schemes ( cap & trade , carbon tax etc ) are all just schemes for the money men to create another derivative type situation by hijacking the environmalist cause. . Widespread corruption has already entered the European schemes after a relatively short time of operattion


Keep up the great work Mark & Simon.

Don't know who Sally at 9.42am is? Just in case Nick Smith thinks I have become one of his "hysterical environmentalists" I needed to put the record straight.

This was Nick Smith's extremely prompt reply to my letter via email on the 22 November. Just before his MPs rushed through the horse traders ETS amended bill where Chairman Craig Foss arrogantly failed to execute all three tasks he was delegated to oversee.

"Please read our policy from elect 2008 on ets. We r doing what we said we would do. Nick"

Wonder what has happened to the Prime Minister’s Chief Science Adviser,Professor Gluckman?


Sally at 9.42, is, ironically, the ostrich.

Sally has now buried her head in the sand. This is as the dawn of reality brightens with the cooler sun of uncomfortable reality and a lack of control.

Those that tend towards Marxism exist to be control as a symptom of cognitive repression (or lacking) or to exert its evil to control the same.

"“Every man (or women) takes the limits of his own field of vision for the limits of the world. Reality is a problem for some.”

Just look at Nick Smith as a real life account of this


Follow the money Sally... global warming (renamed climate change) is a scam and Nic Smith is silly enough to be taken in. The climategate emails show temperature data has been altered to suit the agendas of some so-called scientists - who happen to be creaming it financially as part of the billion dollar report writing industry.

The NZX was foolish to get involved in an industry that is a scam. It shoudl focus in on its core roles - including developing the capital markets in NZ.


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