Carbon price breaks through $20, seen rising higher

OMF financial markets director Nigel Brunel says "There is virtually zero momentum in this market for a downside move."

The New Zealand carbon price has broken through the $20 a tonne mark, as it continues its push higher on speculation the new government will lift a cap on the maximum price emitters pay.

The price for a New Zealand carbon unit under the Emissions Trading Scheme last traded at $20.25 per tonne on OMF's CommTrade platform, having jumped higher after Green Party leader and climate change minister James Shaw told industry publication Carbon News last week that he believes carbon prices need to be higher than the current cap of $25 per tonne.

"There is virtually zero momentum in this market for a downside move," Nigel Brunel, financial markets director at OMF in Auckland, said in a note yesterday. "Carbon is on the move; we believe this market will be nearer $22 come February/March. The current government/Greens have clearly signalled higher ambition and a desire to see carbon prices above $25."

New Zealand is reviewing its emissions trading scheme, which currently includes a $25 per tonne cap on the price emitters have to pay the government for liable emissions. Carbon prices have accelerated since Shaw told Carbon News last week that he expects to announce before Christmas the process to establish a climate commission, and that officials are about to begin work on outstanding issues from the latest review of the ETS, including the carbon price cap. Shaw told Carbon News that he believes carbon prices need to be higher than $25, although he noted the commission will have some say over those prices.

The carbon price had collapsed from a high point of $21 a tonne in 2011 to trade as low as 35 cents a tonne in 2014 as cheap eastern European carbon units flooded global markets already reducing emissions due to lower industrial activity after the 2008 global financial crisis.

The $25 per tonne maximum capped price for New Zealand units aimed to stop major industrial emitters facing spiking carbon prices, after rules were tightened to prevent local emitters from accessing international carbon markets, making NZUs the only carbon emission units obtainable by emitters.

(BusinessDesk)


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Another useless costly commission that will act on speculation not empirical evidence.

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Trading in moonbeams!

Carbon trading is a monstrous rort. It is a commodity that cannot be measured accurately and performs no useful purpose for the buyer and the seller. If the amount traded is fraudulently exaggerated both parties benefit.

But, most important of all, there is absolutely no evidence that man-made carbon dioxide causes dangerous global warming. None at all!

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Indeed! Fact is heat rises, carbon falls to ground. So will this scam.

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"Absolutely no evidence ...None at all". Dream on in your own world. You must have spent the whole of your life reading about global warming to be qualified to make such a bold negative statement.

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Why doesn’t Shaw just make it $500 per tonne and be done with it? Biofuels from palm oil created the biggest ongoing threat to Orangoutangs . Carbon dioxide is not pollution. That one single lie on it’s own continues to define the propaganda surrounding this great ponzi scheme. Follow the money and the fraud is exposed for what it is : a giant ponzi scheme in which the perpetrators and beneficiaries are dead before justice can be served for their deliberate deception.

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