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