Prices of New Zealand Units, or NZUs, the country's emission trading carbon allowance unit, dropped to 18-month lows March 24 after a short-lived jump from a failed auction on March 15, while uncertainty over regulatory changes to the system cast a pall on the market, according to S&P Global Commodity Insights.
Platts assessed NZUs at NZ$62.60/mtCO2e ($38/mtCO2e) March 24, an 8% dip from March 15 when it was assessed at NZ$68.10/mtCO2e, S&P Global data showed. The market saw a sudden spike in buying on March 15 after no bid cleared minimum required levels at the first auction for the year, forcing obligatory buyers to look for units in the secondary market.