Sunday, December 4, 2011

Andrei New Zealand importing cheap junk from the EU

Apparently New Zealand producers of Carbon Credits are suffering as a result of a crash in the market price due to imports of "low-quality" European carbon credits.
The price of New Zealand units (NZUs) has crashed from $22 in May to about $11 last week, stifling interest in developing carbon offsetting initiatives here, according to carbon market participants.

The price crash has been so steep that by one calculation, if the price trend continued for another 100 days, the value of NZU credits would be zero.

The reasons for the crash appear to be the unfettered ability of New Zealand emitters to import credits of dubious quality from overseas, coupled with the recent dumping of international credits by cash-strapped European industrial and utilities companies selling down their stockpiles of carbon to realise cash as the debt crisis worsens, participants in the fledgling carbon trading market say.

Just what the difference is between high quality New Zealand Carbon Credits and low quality European ones is, I cannot say. All I know is they make the electricity I use more expensive but it works just the same regardless of whether the cheaper low quality European credits are used or the locally produced ones. In fact if they weren't bought at all the electricity would still do its thing and be cheaper besides.

But then I'm just a dunce when it comes to Carbon Credits and the miracles they work.

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