10/03/2020

OMF Markets Carbon Report

Written by omf-markets

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OVERVIEW

• Climate Change Commission calls for $50 carbon price control now
• Meanwhile……..the carbon market succumbs to lower prices everywhere

COMMENTARY

The Climate Change Commission (ClimCom) has called for the carbon price controls to be $50 now and not step the Fixed Price Option (FPO) from $25 to $35 and then introduce the Cost Containment reserve (CCR) of $50 via auctioning next year. Their rationale is it may encourage (further) hoarding of NZUs. We would agree on that.

However, where we disagree is on the concept of a (rising) reserve auction price or floor. It will bleed into…

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OMF Markets Carbon Report

24/06/2020

OVERVIEW • There is supply out there – at a price. COMMENTARY NZUs closed firm at $31. There appears to be ongoing concern about supply. The main point we would state here is do not rely on one source of supply – emitters should take a portfolio approach across all …

OMF Markets Carbon Report

17/06/2020

OVERVIEW • ETS Reform Bill passes third reading COMMENTARY The ETS Reform Bill passed its third and final reading yesterday. It’s taken twelve years to get back to where we started with the initial ETS brought in by Labour. It’s been a herculean effort by officials. Congratulations. Here is the …

OMF Markets Carbon Report

11/06/2020

OVERVIEW • Everybody knows • Financial impact on households is small • Is the $35 FPO a problem for the government? COMMENTARY There is a great song by Leonard Cohen called “Everybody Knows” – it’s a slightly depressive song but the classic opening line is “Everybody knows the dice are …

OMF Markets Carbon Report

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