Emissions Trading - Emissions Units and Prices

Introduction

There is no single market price for "carbon credits" or "emission allowances / units".

Prices vary by timing, trading scheme and emission unit type.

 

Emission Unit Types and Eligibility

Different emission unit types can be used in different emissions trading schemes as seen below.

Matrix of Unit Eligibility in Emissions Trading Schemes

The table below is schematic only and does not take into account price control restrictons that are contemplated in the early years of the NZ ETS and Au CPRS.

  

Regime :

Kyoto

EU ETS

NZ ETS

AU CPRS

Domestic Units

 

 

 

 

  • EUA

 

 X

 

 

  • NZU

 

 

X

 

  • AEU

 

 

 

X

Kyoto Units

 

 

 

 

  • AAU

X

  

X (restricted)

 

  • CER

X

X

X

X

  • l-CER

X

 

 

 

  • t-CER

X

 

 

 

  • ERU

X

X

X

X

  • RMU

X

 

X

X

 

For unit abbreviations refer to our glossary.

 

For up to date information on unit eligibility and prices please contact us. We can then discuss with you the specific market, unit type and pricing methodology relevant to your business.

Prices

The EU ETS is the dominant trading emissions trading scheme in terms of coverage and trading volumes. As a domestic regulated scheme it does not represent a true "international price", however secondary market Kyoto compliant CERs are increasingly being indexed to EU ETS 2008+ prices.

  

Short term NZ ETS and Au CPRS prices will be dependent on price controls in the early years of the schemes.

In the long term convergence on price with a CER price is expected.

  

The following sites provide up to date prices on the EU markets:

  

Contact us if you are buying or selling emission unts. We can provide you with up to date advice on unit eligibility and other pricing consideration drivers - a must have before you negotiate a trade. 

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