Spot permits in the New Zealand emissions trading scheme closed Friday at NZ$5.90 ($4.45), up 0.85% from last week but with no strong direction.

The spot New Zealand Units (NZUs) opened the week flat at NZ$5.85, but edged up 5 NZ cents towards the end of the period.

“The market looks like it wants to go higher mainly because there isn’t sufficient will or volumes to send it lower,” brokers OM Financial said in a note to its clients.

“Volumes have declined considerably in recent weeks mainly due to many emitters being absent for various reasons, but also because most of the desperate selling by those who needed cash has been done.”

NZUs rose 50% over the last six weeks of 2014, but have since been stuck in a NZ$5.85-NZ$6 range, with no urgency on either side of the market.

Emitters can use cheap UN offsets for their 2014 compliance, due in May, and have another year until they must cover their emissions using the domestic NZUs only.

Sellers, primarily forest-owners, are expecting prices to go up in the longer term as access to UN offsets are cut off, and are reluctant to sell at current levels.

By Stian Reklev – stian@carbon-pulse.com