OVERVIEW
• NZUs drift lower
• COP 25 starts in Madrid next week
COMMENTARY
NZUs closed down at $24.65 on relatively small volume. There is clearly a lack of interest in NZUs at present and it’s probably down to three things. The $25 Fixed Price Option (FPO) remains the choice for emitters though at current prices NZUs are the better option. Emitters see the FPO remaining for this emission year and next and don’t feel inclined to buy NZUs. We are still waiting for the ETS Reform Bill to be passed.
Both spot and forward NZUs look attractive buys…
