• NZUs quiet at the price cap
• ETS Amendment changes next
• NZUs cheap relative to their peers
Whilst domestic climate change legislation is in a new era with the passing of the Zero Carbon Bill (ZCB), the market remains quiet and sits at the $25 Fixed Price Option (FPO). As mentioned previously, given half paid the FPO last emission year and the rest observed, it’s clear everyone is now seeing the FPO as a free option (which it is). Whilst the market is quiet it has little downside momentum.
We now sit and wait…