Carbon Price nose dives following auction

by | Mar 24, 2024

The NZU carbon price has dropped to its lowest level since July 2023  following yesterday’s partial clearance at the auction. 

CMS Managing Director, John O’Brien, said that despite the partial clearance, it must be a relief for the government to finally raise some money after four failed auctions in a row in 2023. “Based on this result one would expect the NZU market to decline in the short term as the NZU buyer demand at $64 was all used up in the auction.” However, O’Brien expected the price to recover to the mid-60s prior to the next auction.

“Barring any major government announcement that could cause a rapid price change upwards or downwards. This is not a prediction but rather just some thoughts about what might happen. “All the demand at $64 is gone but by the time of the next auction it makes sense to go back to around this price of $64.”

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