Home NZ Emissions Trading Post 1989 Forestry International Markets

Post 1989 :: Access to International Markets

International markets exist for Kyoto compatible credits. The Government has committed to make NZU compatible with Kyoto units or AAU, with some restrictions.

Early movers will be able to access international markets.

EITG has existing long standing relationships with Cantor CO2e dating nearly 10 years and relationships with other major trading platforms. Taking part in the EITG pool means potential access to international markets and premium prices.

It also means that risk management for harvest and other risks such as fire are cheaper and more flexible.

Treasury estimated NZU units are worth USD $11.90 www.treasury.govt.nz/kyotoliability/

Below is the European market pricing for EU allowances and CER allowances. Whilst New Zealand forest credits are not permitted in the EU market, the CER units are common to both markets allowing a drawing of some limited conclusions on price.

Unreported anecdotal evidence of sales of AAU units, that is units issued under the PFSI, or converted from New Zealand units or NZU suggest a pricing of Euro 10-11. Given the rapid appreciation of the NZD in recent times this has reduced the price in NZD terms from around $22 to less than $20