NZ Government $258M richer following December 2024 carbon auction

Species mix in NZETS forest

December 2024 Auction Result

Today's New Zealand Government carbon credit auction cleared at the floor price of $64.00, with 4,032,500 (36%) out of the 11,125,700 NZUs offered sold. The unsold 7,093,200 NZU will be retired from the market. The Government's return from the sale was $258.08 million.

It was interesting to see before the auction that the secondary market had risen to $64.00 per unit, and even over $64.00 briefly. Reports from carbon traders consistently show strong interest in carbon credits, with about 3 million units trading per month prior to the auction.

Floor price $68.00 in 2025

The floor price will rise to $68.00 in 2025. It is expected that the secondary market will see a similar lift in prices. We will be recommending to clients that they aim for $67-68 if considering a sale of unencumbered credits (not needed for surrender) from now on.

Carbon Futures

The increasing carbon credit price will mean that it will be more economic for additional areas of tough country to be added to the New Zealand Emissions Trading Scheme. This is especially so for regenerating native bush in difficult to farm areas.

As we travel throughout the country, we see significant areas of bush regrowth that could qualify for the NZETS, and we wonder if the farm owners are aware of the money literally sitting in their hills. For many, some carbon credit revenue from the young native forest would be better than nothing. Erosion-proofing, slip protection, water quality and biodiversity benefits also accrue as the forest grows.

CarbonCheck® (what areas qualify for the NZETS) and CarbonRevenue™ (how much money you might make) services are now available on-line at GreenXperts' Shop. Check it out! Or call Susan direct on +64 22 1544 958. GreenXperts is still in the business of helping farmers release sustainable wealth on-farm. What's good for farmers is still good for New Zealand.

(Also on GreenXperts' blog)