9 May 2025 17:47:14
Posted: 28 Jun 2023
The NZ ETS interim auction monitor report for the June 14 auction was released yesterday. This was the second auction for the year, with neither auction selling any units.
Under the Climate Change (Auctions, Limits, and Price Controls for Units) Regulations 2020 section 33(a)(b), no bids are deemed to be successful and no units may be sold to bidders, if—
(a) there is a confidential reserve price (CRP) at the auction; and
(b) the final clearing price is less than the CRP.
In simple terms, the ‘final clearing price’ (in absence of the CCR being triggered) is determined after ranking bids in order of bid price, and allocating available volume to the ranked bids. The clearing price is the bid price of the lowest-ranked bid/tied bids at the auction to be allocated a number NZUs that is greater than zero.
For the 2023 calendar year, the price floor is set at $33.06 and the trigger price for the cost containment reserve (CCR) is set at $80.64. The CRP is confidential, but the methodology serves to prevent sales at "prices significantly below the prices of New Zealand units sold at the time in other ways” (i.e. the secondary market).
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