Carbon auction set to fail, depriving the govt of $900m

Finance minister Nicola Willis needs cash, but the ETS is unlikely to deliver ... for now. (Image: Getty)

Mon, 04 Dec 2023

The likely failure of the last carbon auction of the year on Wednesday would deprive the government of $900 million but set the scene for record-high carbon prices in 2024.The fourth auction of 2023 is likely not to sell any units, barring some exceptional circumstances.However, market experts said the failure to sell any carbon units for the fourth auction in a row could push prices past the previous record of $88 and closer to $100 next year.On Dec 6, there are 15m New Zealand Units (NZUs, a proxy for one tonne of carbon) on offer, including...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Retail

KMD Brands pulled into Trump trade war

Like a lot associated with so-called ‘Liberation Day’, much remains uncertain.

Gregor Thompson 2:00pm

Economy

US tariff risk less than expected for FPH, Jarden says

Jarden says tariff-related impacts on earnings would be "nominal" by 2030.

John Anthony 11:00am

US tariff risk less than expected for FPH, Jarden says

Markets

Wall Street reels as Trump’s plan sinks markets

The president’s sweeping tariffs proved far more severe than investors predicted.

The Wall Street Journal 9:30am

Wall Street reels as Trump’s plan sinks markets

Sponsored

New life in property market

Tax rule changes are bringing back mum-and-dad investors.

Fletcher Living

Sponsored

Commercial property trends: AI, sustainability and growing confidence

Falling rates and green tech shape property investment’s future.

PMG

More Markets

Retail

KMD Brands pulled into Trump trade war

Like a lot associated with so-called ‘Liberation Day’, much remains uncertain.

Gregor Thompson 2:00pm

Economy

US tariff risk less than expected for FPH, Jarden says

Jarden says tariff-related impacts on earnings would be "nominal" by 2030.

John Anthony 11:00am

Markets

Jarden says Skellerup 'most exposed' to Trump's tariffs

US President Donald Trump's sweeping global tariffs, announced on Thursday, are expected to have devastating consequences not only in the US but also in New Zealand.In a note on Friday morning, Jarden analysts Guy Hooper and Nick Yeo predicted that NZX-listed Skellerup looks...

Staff reporters 10:50am

Markets

Wall Street reels as Trump’s plan sinks markets

The president’s sweeping tariffs proved far more severe than investors predicted.

The Wall Street Journal 9:30am

Carbon auction set to fail, depriving the govt of $900m

More Markets

Your company has a subscription

Team