Posted: 14 Jul 2021
NZUs have come off in price - back best bid at $47.10 today and with buying interest a little weaker on the Carbon Match screen compared to the last couple of weeks.
Finally, the updated EPA statistics covering the quarter ending June 2021 are now available - meaningful to the market because it covers the most recent surrender activity. From those, we note that, of a potential total compliance liability of 36.85 million, 29.5 million were met by paying the $35 fixed price option, bringing in a little over $1 billion in cash for the Crown.
This was a new record for uptake of the FPO. At 80% the amount was just a little over the 75% that the Ministry's own most recent public forecasts had assumed. But for some this was clearly a missed opportunity in what is now a $47+ market.
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