New Climate Change Minister, Simon Watts says New Zealand needs a strong and stable Emissions Trading Scheme (ETS) for the future, after emission units failed to sell for the fourth and final auction of the year held yesterday.
At the auction, 15 million New Zealand units (NZUs) – each representing one metric tonne of carbon dioxide – were for sale, including more than 13 million unsold NZUs carried over from the three previous 2023 auctions.
There were also an additional 8 million NZUs within the cost containment reserve. All NZUs from 2023 will now be cancelled, the Minister confirmed.
“Our Government has immediately stopped work on the ETS Review carried out by the previous Labour Government which was driving uncertainty and was a factor in the failed auctions,” Mr Watts (pictured) said.
“The market has been suffering from a degree of volatility and as a result we’ve seen the carbon price fluctuate over time.
“It’s important to have market stability – and give businesses certainty and confidence.
“Our Government is committed to restoring credibility in the ETS as it remains the Government’s key tool to reduce emissions,” he said.