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Information release

Carbon Price Information Releases

Issue date: 
Sunday, 12 August 2012
Status: 
Current
Corporate author: 

Documents relating to the establishment and annual revision of the price for Kyoto-compliant emission units ('carbon price') used to value New Zealands position under the Kyoto Protocol in the Financial Statements of the Government of New Zealand.

The Ministry for the Environment estimates the carbon price to be used for the purpose of reporting in the Financial Statements of the Government of New Zealand and policy analysis. This is reported at: http://www.mfe.govt.nz/issues/climate/greenhouse-gas-emissions/net-position/#pricecarbon1.

The Treasury previously estimated this carbon price, and this page contains documents relating to the establishment and annual revision of the price for Kyoto-compliant emission units ('carbon price') used to value New Zealand's position under the Kyoto Protocol.

In May 2005 Treasury used a weighted average of the value of recent forward trades in Kyoto-compliant certificates ($US6/tonne) sourced from the World Bank Report 'State and Trends of the Carbon Market 2005'. This methodology and price was confirmed as appropriate by the Allen Consulting Group (see the June 2005 report below) and subsequently met the accounting standards required by Audit NZ.

In 2006 Treasury engaged Geoff Sinclair, a UK-based economic consultant, to provide an updated figure for the carbon price. The figure derived was $US9.65/tonne. This was peer-reviewed by the Allen Consulting Group. The Sinclair report and the Allen Consulting Group peer review of the Sinclair report (both August 2006) are available below.

The Treasury closely followed Mr Sinclair's methodology in the 2007 update of the carbon price. The price estimate based on current market conditions and practices as at 30 June 2007 was US$11.90. This was peer reviewed by the Allen Consulting Group and was considered to be robust.

Due to increased demand for carbon price information, an interim update was produced to reflect current market conditions and practices as at November 2007. The figure derived was €11.13. No report has been published below, as this update uses the same methodology and data sources as the 30 June 2007 report.

Treasury updated the price estimate to €12.50 based on current market conditions and practices as at 30 June 2008. This was peer reviewed by the Allen Consulting Group and was considered to be robust.

Treasury carried out an interim update to reflect market conditions as at 31 December 2008. The price of €10 was calculated by taking the mid-point price of the trades in primary Certified Emission Reduction units (CERs) as reported by Point Carbon for December 2008.

Treasury reviewed the price estimate based on trades of mid-risk primary CERs as reported by Point Carbon for the end of June 2009. The estimate for June 30 June 2009 remained at €10.

Treasury carried out an interim update of the carbon price as at 31 December 2009. The price of €10.75 was calculated using the methodology of taking the mid-point price of the trades in primary CERs for December 2009, as reported by Point Carbon.

Documents are only available in Adobe PDF format. HTML versions can be supplied on request from Information Services at the Treasury.
Doc. Date Created by Title Download
5 Sep 2008 The Allen Consulting Group Comments on Kyoto Carbon Price 'Refresh' Analysis of June 2008
Released 6 Oct 2008. Peer review comments on the Treasury report on the annual revision of the carbon price conducted in June 2008.
kp-acg-sep08.pdf (61 KB)

pdf
60.04 KB

Jun 2008 The Treasury Price Estimation of Kyoto Compliant Emission Units
Released 6 Oct 2008. Annual revision of the carbon price by the Treasury conducted in June 2008.
kp-price-est-jun08.pdf (80 KB)

pdf
79.21 KB

30 Jun 2007 The Treasury Price Estimation of Kyoto Compliant Emission Units
Released 20 Sep 2007. Annual revision of the carbon price by the Treasury conducted in June 2007.
kp-price-est-jun07.pdf (93 KB)

pdf
92.69 KB

3 Aug 2007 The Allen Consulting Group Comments on Kyoto Carbon Price Analysis of August 2007
Released 20 Sep 2007. Peer review comments on the Treasury report (above) on the annual revision of the carbon price conducted in June 2007.
kp-acg-aug07.pdf (180 KB)

pdf
179.94 KB

Aug 2006 Geoff Sinclair Price of Kyoto Compliant Emission Units: Report for the New Zealand Treasury
Released 11 Oct 2006. Annual revision (conducted in August 2006) of the carbon price commissioned by the Treasury from Geoff Sinclair, economist, London.
kp-sinclair-aug06.pdf (84 KB)

pdf
83.21 KB

16 Aug 2006 The Allen Consulting Group Comments on Kyoto Carbon Price Analysis of August 2006
Released 11 Oct 2006. Peer review comments on the Sinclair report (above) commissioned by the Treasury.
kp-acg-aug06.pdf (244 KB)

pdf
243.66 KB

Jun 2005 The Allen Consulting Group Cost of Tradable Emissions Units Under the Kyoto Protocol: Pricing a Potential Future Greenhouse Liability
Released 8 Jul 2005. Report commissioned by the Treasury to evaluate the methodology used to establish the initial carbon price to be used by the New Zealand Government.
kp-acg-jun05.pdf (326 KB)

pdf
326.14 KB

 

 

Last updated: 
Thursday, 12 August 2010