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Carbon Price NZ

About NZUs

The NZU is the domestic unit created for New Zealand's ETS. One NZU corresponds to one metric tonne of carbon dioxide-equivalent emissions. NZU stands for 'New Zealand Unit' and they are held in the New Zealand Emissions Trading Register that is maintained by the New Zealand Environmental Protection Authority.

About VCUs

The VCU is is an NZU that MyNativeForest has verified as coming from a permanent native forest. One VCU corresponds to one metric tonne of carbon dioxide-equivalent emissions that have been sequestered by a native forest. When purchasing VCU's on through MyNativeForest you actually hold a native forest NZU. VCU's are held in the New Zealand Emissions Trading Register and virtualised on our platform to be traded or offset.

Understanding the NZ carbon price

The carbon price is effected by market forces within the carbon market, but there are some key events that happen throughout the year that can effect the price of the NZU and subsequently VCU.

Changes in ETS rules
Generally, it is expected that while there is upside potential for prices then units will be retained but if an event (sch as a change in ETS rules triggers a fall in prices then we may well see units sold off quite quickly. This in turn could drive the price lower.

Supply of carbon credits
The Government has forecast a reduction in the number of NZUs available relative to expected demand. This will, in theory, support prices, but the Government also acknowledges the large number of units currently in circulation will potentially dilute market signals. If companies opt to sell some of their existing holdings of units, or more forestry land enters the ETS, then reducing the supply of units may have very little impact on pricing

Demand for carbon credits
As the world places more importance on the transition away from fossil fuels, the demand for carbon credits will increase and more people (individuals and businesses) will want to buy them, either as an investment, or to offset their footprint.

Learn about carbon credits

The Emissions Trading Scheme is New Zealand's key tool for reducing harmful atmospheric gas levels to meet international climate change response goals. Find out how and why.A Guide To The Emissions Trading Scheme NZ
February 22, 2019

The Emissions Trading Scheme is New Zealand's key tool for reducing harmful atmospheric gas levels to meet international climate change response goals. Find out how and why.

The New Zealand carbon market is a big and relatively new space. This blog will cover the NZ ETS, market functions, carbon credits, and the different participant interactions in the NZ carbon market.New Zealand's Carbon Market 101
May 29, 2022

The New Zealand carbon market is a big and relatively new space. This blog will cover the NZ ETS, market functions, carbon credits, and the different participant interactions in the NZ carbon market.

To buy to sell, or to buy to offset is a good question for people that are just beginning their journey in the carbon market. This question helps to explain the two available options that carbon credit buyers have.Carbon Credits - Buy to Sell, or Buy to Offset?
July 8, 2022

To buy to sell, or to buy to offset is a good question for people that are just beginning their journey in the carbon market. This question helps to explain the two available options that carbon credit buyers have.