Spot NZUs rose 2.8% this week to close Friday at NZ$8.55 ($5.72), a record eleventh straight week of gains as buyers continued to hoover up limited supply.
The spot contract increased 23 NZ cents over the week and has risen NZ$2, or 30%, since Sep. 23.
Demand continues to be spurred by last week’s ETS review statement released by the government as well as by emitters looking to balance their books by year-end.
“We are edging higher by the day and the market continues to be exceptionally well bid,” brokers OM Financial said.
Most supply is available in small clips, but early on Friday there was a NZ$8.55 offer for 100,000 NZUs, a sign that forest-owners are getting increasingly tempted to sell as the price goes up, although some are new eyeing a potential double-digit price in the foreseeable future.
“Buyers in need of volume should take it while it’s there,” OMF wrote in an update to clients.
Meanwhile, the ongoing climate talks in Paris are expected to provide a signal as to what degree New Zealand may regain access to international carbon markets after 2020.
Climate Change Minister Tim Groser said Friday the country will ratify the Doha Amendment to the Kyoto Protocol in order to be able to “influence decisions that may have significant long-term impacts on our economy such as access to international carbon markets and accounting rules for the land- sector”, but New Zealand will not take on a second Kyoto target, meaning access to UN offsets will not return this side of 2020.
By Stian Reklev – firstname.lastname@example.org