Our latest price information for the New Zealand Carbon Market
The carbon price is effected by market forces within the carbon market, but there are some key events that happen throughout the year that can effect the price of the NZU and subsequently VCU.
Changes in ETS rules
Generally, it is expected that while there is upside potential for prices then units will be retained but if an event (sch as a change in ETS rules triggers a fall in prices then we may well see units sold off quite quickly. This in turn could drive the price lower.
Supply of carbon credits
The Government has forecast a reduction in the number of NZUs available relative to expected demand. This will, in theory, support prices, but the Government also acknowledges the large number of units currently in circulation will potentially dilute market signals. If companies opt to sell some of their existing holdings of units, or more forestry land enters the ETS, then reducing the supply of units may have very little impact on pricing
Demand for carbon credits
As the world places more importance on the transition away from fossil fuels, the demand for carbon credits will increase and more people (individuals and businesses) will want to buy them, either as an investment, or to offset their footprint.
The NZU is the domestic unit created for New Zealand's ETS. One NZU corresponds to one metric tonne of carbon dioxide-equivalent emissions. NZU stands for 'New Zealand Unit' and they are held in the New Zealand Emissions Trading Register that is maintained by the New Zealand Environmental Protection Authority.
The VCU is is an NZU that MyNativeForest has verified as coming from a permanent native forest. One VCU corresponds to one metric tonne of carbon dioxide-equivalent emissions that have been sequestered by a native forest. When purchasing VCU's on through MyNativeForest you actually hold a native forest NZU. VCU's are held in the New Zealand Emissions Trading Register and virtualised on our platform to be traded or offset.
