Home NZ Emissions Trading Pre 1990 Forestry Windfall Income

Pre 1990 :: Windfall Income

Owners of pre 1990 forest will receive a windfall of credits. However if you do not replant at the next harvest there will be deforestation liabilities. The approved allocation plan can be accessed by clicking here

EITG can bring these credits into its pool to trade.

International pricing and access by being part of the EITG pool will bring access to a larger number of purchasers and more liquid markets. These factors may result in significantly higher prices.

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