Spot NZUs ended the week at NZ$8.90 ($6), recording a twelfth consecutive week of gains and the highest price since Jan. 5, 2012, as sustained demand kept the upward momentum going.
The spot contract opened the week at NZ$8.70 and slowly crept up to NZ$8.90, 35 NZ cents or 4.1% higher than a week ago.
The bid side remained active, still driven by the need to balance books ahead of year-end as well as the upcoming ETS review.
“Supply is a bit thin though volume from those who bought a while ago has perhaps started to re-emerge in small parcels,” one market participant told Carbon Pulse.
The NZU price has now increased 36% over the past three months and 110% since mid-November last year.
The appointment this week of Paula Bennett as New Zealand’s new climate change minister has sparked renewed interest in the upcoming ETS review process, as she has little experience with climate issues.
Outgoing minister Tim Groser, off to take on his new role as ambassador to the United States, had a reputation of putting his trade portfolio well ahead of his climate policy responsibilities, but still issued a consultation document making it clear he wanted the review to bring about tighter rules for the scheme.
Meanwhile, NZ carbon traders gained some confidence that access to international units could return after 2020, as the NZ delegation at climate talks in Paris was drumming up support for a declaration on carbon markets regardless of whether they were in or out of the final Paris Agreement.
By Stian Reklev – firstname.lastname@example.org