NZU update

NZU trading activity has quietened since the last auction and NZUs have settled back, last trading at $75 flat.

Buying interest has been lighter, a pattern we have seen in previous years at this time.  

Many compliance entities already hold significant forward cover / have contracts in place.  However even among those who tend to favour spot, buying interest has waned - the May surrender deadline is not long past, financial year end is occupying some, and next May feels like a long way off. 

Many buyers are also a little uncertain and conscious that more information is awaited on next year's settings.  The Climate Change Commission's recommendations are timetabled for this month and are expected to provide the next insight into the volumes and trigger prices we might see in next year's auctions - although a full consultation will follow later this year before these are finalised.

Read more in our Newsletter.