The spot price of emission credits in New Zealand’s carbon market fell after low supply discouraged bidding, Auckland-based broker OMFinancial Ltd. said today.
Carbon credits fell to NZ$19.75 ($14.56) a ton from NZ$20, the broker said in an e-mailed statement. Companies in New Zealand that emit greenhouse gases have the option to pay a tax of NZ$25 a ton of emissions or buy carbon credits.
“Spot prices are moderating around the mid-to-high $19 level with emitters choosing not to bid a market that has no volume,” according to the statement.
In New Zealand’s carbon trading system, credits are divided into 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, limiting supply, the broker said last month.
The government has also issued carbon allowances to fisheries that can also be traded. Those credits need to be aggregated before they’re sold on the market, according to the statement.
