New Zealand Emissions Trading Scheme Announcement

July 26, 2017

26 July 2017

Kia Ora

The Government has announced a package of decisions that will improve the operation of the New Zealand Emissions Trading Scheme in the 2020s. This email provides an overview of the decisions and where to find further information.
Four decisions to improve the NZ ETS
The Government has made in-principle decisions on a package of four changes to how the NZ ETS will operate in the 2020s. These are to:
• introduce auctioning of units, to align the NZ ETS to our climate change targets
• limit participants’ use of international units when the NZ ETS reopens to international carbon markets
• develop a different price ceiling to eventually replace the current $25 fixed price option
• coordinate decisions on the supply settings in the NZ ETS over a rolling five-year period.
Today’s announcements will not change participants’ interaction with the scheme
There will be no immediate changes to how the NZ ETS operates. The decisions are in-principle, and further work and consultation will be required before they are implemented.
Implementation decisions will be informed by New Zealand’s wider climate change work programme. This includes, for example, work that is underway to determine options for meeting the 2030 target, and the outcome from the Productivity Commission inquiry for transitioning to a lower emissions economy.
Decisions on other issues considered as a part of stage II
Stage II of the NZ ETS also looked at forestry accounting, free allocation, and operational and technical improvements to the NZ ETS. The Ministry for the Environment will report back to Ministers on these issues in the first half of 2018, and organise further stakeholder engagement and consultation to inform this further work.
For more information about the proposals and other issues considered in the review please see
Link to Minister Bennett’s press release:
Link to the Ministry for the Environment’s web content:
or email



New Zealand ETS sustainable forestry bulletin

November 7, 2016

MPI recently emailed their latest bulletin

This edition has information on:

  • End of the Mandatory Emissions Return period
  • Offsetting pre-1990 forest land
  • Amended forestry sector Regulations
  • Emissions Trading Scheme review update
  • Ratification to the Paris Agreement

Download the Sustainability Forestry Bulletin November 2016

NZU market remains strong Carbonmatch reports

November 7, 2016

Carbon Match recently reported:

Spot NZUs closed the month of October at $18.50 on reasonable volume, then sat still  yesterday, bid at $18.45 and offered at $18.55.

Global climate change talks commence formally in Marrakesh next Monday, just a day before the US Presidential election. 

Overnight, in an uncharacteristic move, the Chinese have openly criticised Donald Trump’s signalled plan to back out of the Paris agreement, with Reuters reporting China’s top climate negotiator as saying that “”If they resist this trend, I don’t think they’ll win the support of their people, and their country’s economic and social progress will also be affected.”

China and the US co-operate strongly on climate change, with the two countries choosing to jointly table their Paris ratification documents earlier this year and sharing technical details on their respective strategies for mid-century, low-greenhouse gas emission development. 

But candidate Trump once tweeted that Climate Change was a concept invented by the Chinese to harm US industry.

It’s not all bad – indeed Trump’s threats might well have contributed to the unprecedented momentum that has underpinned the recent entry into the force of the Paris Agreement.   And that Agreement contains provisions which would impose a four year process on any country seeking to withdraw from the Agreement.

NZETS carbon prices rocket

April 14, 2016

Carbon Match is reporting strong interest in NZU above $12NZD

Last week ended on a four year high.  Carbon Match reported:

From bid levels that have sat around the $11.80 level most of the day we have seen buyers reach up again and pay better than the ask on opening, with volume being snapped up to $12.06.

This is a market with a lot of buy-side interest below the surface, but likewise real caution among those on the sell side as would-be sellers hope for a continued rise.

As we wrote earlier in the week, it’s important to temper your expectations with a dispassionate view of the risks, not least of which is that until an announcement has been seen about the 2 for 1, the demand profile of this market remains unknown.

It’s exciting to see this level of prices once again after more than 4 years, but uncertainty is running high and now that today’s willing volume has been cleaned out we are bid $11.85 and offered $12.50.

Climate Web Update

April 14, 2016

We met Dr Trexler back in 1996 and he continues to offer the best insight into climate change knowledge on the Planet. Climate Web is his latest venture into spreading the word on climate change.We are sharing his latest update:

Climate Web was featured last week on the Yale Climate Connections podcast.  It’s only 90 seconds but it’s a great promotion for the Climate Web. 

We’ve continued to make rapid progress with the Climate Web, and it’s little exaggeration to say that you can explore and answer almost ANY question having to do with climate change (and through different lenses).  We’ve also come up with an exciting way to give people access to it without having to dive head-first into the whole thing, which we know can be disconcerting.  There’s plenty of new material to explore at our website, but to give you just a quick flavor here are links to a few specific Climate Spotlight pages that take very different approaches to organizing and communicating information you may be interested in:



These are just 3 of some 20 Spotlights accessible through but hopefully they give you a feel for the versatility the Climate Web now has.  We’ve also done a lot more to provide help materials and videos, and even a Hands-On Training Brain within the Climate Web that people can complete in just a couple of minutes!


If you have a chance to check out these materials I’d love to get your feedback!  The Climate Web is more like a Climate Knowledge Legos set than a set-in-stone knowledge management system, and the whole point is to be able to customize it for specific audiences and uses.  So if you have one, let us know!

Carbon Pulse releases its new newsletter – click the link to sign up

June 20, 2015

CP Daily is Carbon Pulse’s daily newsletter.  It’s a free daily summary of their top news plus bite-sized updates from around the world. Our friends at CP have asked us to post this on our blog and offer our readers the opportunity to sign up.

If you want to subscribe to CP Daily, click here to sign up.


Pope Francis encyclical warns on use of carbon credits

Using carbon credits would not help global efforts to cut greenhouse gases, according to Pope Francis’s encyclical on climate change released by the Vatican on Thursday.

Loophole could cut EU ETS cap by up to 304m tonnes in 2021 -study

The EU ETS emissions cap could be reduced by as much as 304 million tonnes in 2021 if some richer member states opt to take advantage of a provision to help them meet climate goals in other non-ETS sectors, according to a report released on Thursday.

Impact of unallocated allowances on future EUA prices negligible -analysts

The fate of an estimated 700 million unallocated allowances left over from the current phase of the EU ETS will have a negligible effect on post-2020 EUA prices, analysts said on Thursday.

EUAs dip as concerns mount over evaporating trading volumes

European carbon prices trickled lower on Thursday in very light volumes that squeezed the benchmark contract’s intraday trading range, as concern mounted over evaporating activity in the market.

Last-minute demand sees volume spike in Guangdong

A last-minute rush to cover short positions ahead of Saturday’s compliance deadline has boosted volumes in Guangdong’s carbon market, with nearly a million allowances changing hands over the past two days.

RWE, Vattenfall, E.ON hang on to top spots in 2014 EU ETS emitter rankings

Utilities RWE, Vattenfall and E.ON held on to their respective rankings as Europe’s top GHG emitters in 2014 despite all three cutting their output, according to a report published Thursday.

Putting cars in EU ETS can’t replace other regulations -Arias Canete

The European Commission is not currently planning to propose putting road transport in the EU ETS, and even if it eventually did the measure should not be to replace existing regulations for the sector, EU climate chief Miguel Arias Canete said on Thursday.

Bite-sized updates from around the world:

May 2015 was the hottest on record, say US govt scientists – Record temperatures and impending El Nino set year on course to be warmest since 1880. (RTCC)

Climate aid key to Paris deal, says Amber Rudd – UK’s energy secretary and lead negotiator says financial package for developing countries absolutely essential for global agreement on carbon emissions. (Guardian)

Carbon Glut Limits German Options to Meet Emissions Target – A glut of European Union carbon-emission permits is limiting Germany’s options to meet its 2020 greenhouse gas-reduction target, according to the nation’s environment ministry. (Bloomberg)

Poland Seeks to Balance Pope’s Climate Call With Energy Security – Poland will seek to reconcile its use of coal as a guarantee of energy security with Pope Francis’s warning about the risk of fossil fuels. (Bloomberg)

EPA’s Clean Power Plan a ‘cheap shot’ at Pennsylvania coal – In recent testimony before the Pennsylvania House and Senate Coal Caucuses, Pennsylvania Coal Alliance CEO John Pippy said the U.S. Environmental Protection Agency’s proposed “Clean Power Plan” will be “the cheap shot that cripples the industry.” (

Obama admin set to release mandatory carbon cuts for heavy-duty vehicles – Four years ago, in August 2011, U.S. EPA and the National Highway Traffic Safety Administration announced the first federal program to cut carbon emissions from the nation’s biggest vehicles by raising the fuel standards those heavy-duty fleets must meet. (ClimateWire)

Deadline to use Non NZU units in the NZETS looms

May 19, 2015

From 1 June 2015 CERs, ERUs and RMUs (in fact most Kyoto Protocol units) will no longer be eligible for surrender to meet obligations in the Emissions Trading Scheme (ETS). For more details click here

If you are a forest owner trying to use ERUs to extinguish a qualifying liability, simply purchasing units does not complete the process. Units cna only be surrendered by logging into the emissions unit register, selecting the relevant surrender notification and surrendering the requisite number of then eligible units to the Crown account before the end of May 2015.

Thanks to Carbon Match for parts of this content