New Zealand carbon allowances rose to a 2016 high for a second straight session, gaining another 25 cents on Wednesday to close at NZ$11.85 ($8.07).
The move followed Tuesday’s 60-cent climb to NZ$11.60 as buyers scrambled to lift available offers in a market thin on the sell side.
“Current momentum paired with an abundance of buying interest places $12 levels very much in reach,” said brokers OM Financial, adding that its CommTrade screen will now open an hour earlier in the morning due to increased market activity.
Market direction continues to be driven by expectations that the government will soon announce tighter rules for the emissions trading scheme in a bid to drive up prices, a move that officials consider necessary for New Zealand to meet its GHG emission targets.
By Stian Reklev – stian@carbon-pulse.com
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