New year brings increased NZU prices

Posted: 18 Jan 2022

A new year surge in the New Zealand carbon values has caught the market by surprise, with traders anticipating values may well impact upon the first carbon auction of the year due to be held in mid-March.

Values for mid-January are now trading at $72.10 a unit, with a bullish sentiment on the market also reflected in future spot prices. The contracted market has April 2023 values trading at $75.20, and April 2026 at $83.40 a unit.

Lizzie Chambers, director of carbon trading company Carbon Match, said trading is now characterised by a myriad of buyers and sellers across the breadth of the market, including investors, farmers and emitters requiring credits to operate.

“Over the new year the market really gapped it from $69.50 to $71.50 a unit very quickly. It appears almost as if there was a decision made by many buyers first off at the start of the year to get in and tick the box on buying,” Chambers said.