NZUs closed up 25 cents to $23.85 ahead of the ETS announcement.
After market, the government announced their final decisions on ETS improvements.
The phase out of the free allocation to Emissions Intensive Trade Exposed (EITES) begins, starting at 1% annually from 2021-2030, then at 2% from 2030-2041, and at 3% per year from 2041-2050. The Climate Change Commission will review this phase down. Whilst some may consider this small and gradual, it does send a signal to those industries allowing them to make the necessary changes albeit over a long time period.
It does not apply to Agriculture who…