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‘Problems looming’ for Govt's key climate tool

22 Aug 2025

Eva Murray speaking at the Carbon Forestry conference in Rotorua this week
Eva Murray speaking at the Carbon Forestry conference in Rotorua this week

By Liz Kivi

There are serious unresolved issues for the Emissions Trading Scheme which mean it could become unstable and ineffective at driving emissions reductions, according to the Climate Change Commission.

Despite the government saying the ETS was its “key tool” for emissions reductions, it hasn’t addressed serious problems with the scheme, Eva Murray, principal analyst at the Climate Change Commission, told the Carbon Forestry 2025 conference in Rotorua this week.


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Story copyright © Carbon News 2025

Related Topics:   Carbon Credits Carbon prices Emissions trading Energy Forestry Low carbon NZ ETS Policy development Politics

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CARBON PRICE

Today 11:45am

Exclusively for subscribers, the Carbon News NZU Index tracks daily movements in the compliance carbon market across multiple trading platforms.

Elevated volatility continues for carbon market despite govt reassurances

Today 11:45am

By Liz Kivi | While carbon prices have recovered somewhat from recent lows, the market is still plagued by low prices and volatility, despite soothing words from the government intended to calm rattled participants.

Words fail to calm carbon price jitters

18 Nov 2025

While the Climate Change Minister and the Ministry for the Environment have both tried to quell carbon market volatility with soothing words, participants are viewing government actions as speaking louder, and the market remains volatile.

Ministry won’t investigate pre-announcement price drop

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By Liz Kivi | The Ministry for the Environment won’t be investigating a drop in the price of NZUs on the secondary market just days before the government announced a policy change causing carbon prices to plummet.

Carbon price tanks again – call for auctions halt

14 Nov 2025

By Pattrick Smellie | The collapse of the New Zealand carbon price is serious enough to consider cancelling further Emissions Trading Scheme unit auctions, says Carbon Match founder Lizzie Chambers.

Climate Change Minister Simon Watts

Carbon price’s dead cat bounce

12 Nov 2025

By Liz Kivi | The carbon price rebounded briefly in what looked like a ‘dead cat bounce’ last week, following the Government’s announcement it was unlinking the Emissions Trading Scheme from international climate targets.

Prime Minister Christopher Luxon

Ministers defend ETS changes

11 Nov 2025

By Pattrick Smellie | Government ministers insist climate change policy decisions that have depressed the New Zealand carbon price were necessary changes that cannot be compared to “a lot of fiddling” by the previous government.

Undermining the ETS is poor policy – Mindful Money

7 Nov 2025

Politicising settings for the Emissions Trading Scheme creates uncertainty for investors at a time when we need clear and stable policy, says Mindful Money's Barry Coates.

Carbon market tanks off the back of Govt’s proposed climate law changes

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By Liz Kivi | Secondary market prices dropped 20% in early morning compliance carbon trading yesterday, as the market woke up to Tuesday’s late-breaking government announcement of proposed law changes to climate policy.

Another hit to market as Govt uncouples ETS from international climate target

5 Nov 2025

By Liz Kivi | The Government’s surprise move to break the connection between the Emissions Trading Scheme and New Zealand’s Paris Agreement climate target is a brutal hit to confidence in an already moribund market.

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