Carbon auction: bargain chance or money down the drain

Finance minister Nicola Willis will be keen to see how Wednesday's auction plays out. (Image: NZME)

Mon, 18 Mar 2024

The first carbon auction of the year on Wednesday will be keenly watched by finance minister Nicola Willis, with at least $225 million in cash revenue at stake as she stitches together her first budget.On offer is 3.525m New Zealand Units (NZUs, a proxy for one tonne of carbon emissions). There are more than 7m units available in the cost containment reserve (CCR), but the price needed to trigger this is so high that it is nearly impossible to happen.The floor price for the auction is $64 a unit, meaning if it clears at the lowest possible...

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