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24 Jun 2017 15:24:26

Frequently Asked Questions

Below you'll find answers to some of the commonly asked questions about Carbon Match.


What is Carbon Match?

Carbon Match is New Zealand’s dedicated platform for direct trading of carbon credits. The aim is to make available to participants a regular and credible market price for carbon.

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How does Carbon Match work?

Approved buyers can place bids to buy carbon and approved sellers can place offers to sell carbon on the Carbon Match website. This can be done at any time, from anywhere with a connection to the internet. When the market next opens, Carbon Match will put bids and offers together (subject to the market rules) and create a binding contracts pursuant to the Carbon Match Standard Sale and Purchase Terms. Contact us to see a copy of our “Standard Sale and Purchase Terms”

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How is Carbon Match different?

On Carbon Match, approved buyers and sellers directly place their own anonymous Bids and Offers. This means market prices set by competitive and transparent interaction between participants. Carbon Match gives you more control and makes trading easy.

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Who can use Carbon Match

Carbon Match can be used by approved companies who have a liability under the New Zealand Emissions Trading Scheme, companies who have received an allocation of units, large forest owners, carbon aggregators and financial institutions.

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Can people see who is making a Bid/Offer?

Bids and Offers are made anonymously. It is only after a “Match” has been made and a binding contract generated that the buyer and seller (and the Approved Escrow Agent) receive details of who they have traded with (although a “green” list enables entities to restrict who they can be “matched” with). Carbon Match does not disclose the identities of the parties to a transaction.

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Can I control who I trade with?

Yes. When you join Carbon Match, you can set up your own trade restrictions through the use of a Green or Red List. The Green List specifies Approved Participants with whom you are willing to trade. This means it is only possible for you to be matched with those on your Green List. Alternatively the Red List can be used to specify Approved Participants with whom you do not wish to trade. This means you can be matched with all Approved Participants except those on your Red List. Trade Restrictions are optional.

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What kind of carbon credits can be traded?

All emissions units capable of being surrendered for compliance within the NZ Emissions Trading Scheme can be traded on Carbon Match. Currently Carbon Match only accepts bids and offers for “spot” carbon credits, i.e. available for immediate delivery. Please call us directly about trading a type of unit that you can’t currently see on Carbon Match.

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Are Bids and Offers only matched if they are at the same price?

Not always, but a buyer will never pay more than their specified Bid price and a seller will never receive less than their specified Offer price. Bids and Offers are matched on the basis of price, time placed and any trading restrictions that either party may have in place. Please see our Market Rules for further explanation.

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What are the Carbon Match trading hours?

The normal trading window during which bids and offers can be “matched” (i.e. when trades go through) is between the hours of 1PM and 5PM (NZ time) each business day.

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What happens once a trade has taken place?

After a “match” is made, the buyer and seller are emailed a legally binding Carbon Match contract note in pdf format. This confirms the trade and the terms and conditions for settlement. At this point, the buyer and seller, and the Approved Escrow Agent (if applicable) will discover each others’ identities and will be provided with contact details to enable settlement. While the price and volume of the “match” become information which can be observed by any approved participant logged into the site, Carbon Match does not disclose the identities of the parties to a transaction.

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What if I make a mistake?

If you enter a bid or offer by mistake, you can withdraw it before the market opens by logging in to Carbon Match. We have a number of safeguards in place to help prevent this.

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How do I "settle" a contract?

Once a match has been made, the seller will need to access their NZEUR account in order to transfer the appropriate units to the buyer’s NZEUR account. Once the buyer has received notification from the NZEUR that the units have been received, the buyer then pays the seller. Alternatively, the Escrow service provided by Public Trust can be used at the seller’s discretion.

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What is "Escrow"and how is it used?

Once a match has been made, if a seller wants additional security while settling, they have the option of Escrow through Public Trust. Sellers send the relevant units to the Public Trust’s NZEUR Escrow account, where they remain in safe custody until payment has been confirmed.

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How does Carbon Match ensure transactions are settled?

Carbon Match aims to maintain a high quality network of carbon traders. There are three aspects to this:
1. All potential participants go through a rigorous application process before they are approved to trade on Carbon Match.
2. In addition, participants can set their own Trade Restrictions, specifying exactly who they do or don’t want to trade with.
3. Finally there is the option for sellers to use Public Trust to hold the units in Escrow until payment has been confirmed.

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What happens if someone fails to settle a contract?

If a party to a Match fails to settle the resulting trade, it is the responsibility of the other party to the trade to enforce its rights under the Sale and Purchase Agreement on the Standard Sale and Purchase Terms. Carbon Match is not involved in the process of settling trades. Carbon Match has no responsibility for and accepts no liability if a trade is not settled.

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Does using Carbon Match mean giving access to my NZEUR account?

No, Carbon Match will NEVER ask you for your NZEUR password or username. You retain full control of your NZEUR account, and you are responsible for making the transfers required in order to settle any contracts into which you have entered by trading on Carbon Match. Please note, however, that in order to become an Approved Participant you will need to provide us with your NZEUR account number. This is for the purpose of generating the contract note that you receive on making your match.

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Is Carbon Match an exchange?

No, Carbon Match is not a registered or authorized securities exchange. Carbon Match is not regulated under section 36B of the Securities Markets Act 1988 or under any other New Zealand Securities Markets law. Carbon Match simply “matches” bids and offers based on price. Participants using the Carbon Match website trade at their own risk.

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How does Carbon Match relate to the New Emissions Trading Scheme?

Carbon Match is consistent with the policy objectives of the NZ ETS. It aims to provide participants not only with a convenient way in which to trade, but also a transparent and credible market price for carbon. A credible carbon price is critical to further investment in forestry, energy and to driving behaviour which will see New Zealand meet its obligations under the Kyoto Protocol and its longer term emissions targets.

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How do I join Carbon Match?

Carbon Match is intended for direct use by companies who have a liability under the NZ ETS, companies who have received an allocation of units, large forest owners, carbon aggregators and financial institutions. Participants need to be approved by the market operator before they can begin trading. Companies wishing to join Carbon Match must contact us.

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How much does it cost to use Carbon Match?

There are no joining or membership fees. Buyers and sellers each generally pay Carbon Match 5 NZ cents + GST per unit traded, subject to a minimum trade fee of $150 + GST if any.

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Why can't smaller traders become Carbon Match participants?

The majority of buyers on Carbon Match are interested in minimum parcels of 10,000 units or more and the site is intended for repeat buyers/sellers of units. However, sellers with smaller parcels may potentially sell their carbon units through Carbon Match via an aggregator. Talk to your local forestry consultant to see if they have joined Carbon Match, or check out our Carbon Match affiliates.

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