NZX and EEX will develop and operate the managed auction service for New Zealand’s Emissions Trading Scheme, helping to bring carbon costs into the mainstream.
New Zealand’s Ministry for the Environment has selected a joint bid by NZX (New Zealand Exchange) and EEX (European Energy Exchange) to develop and operate the managed auction service for New Zealand’s Emissions Trading Scheme (NZ ETS).
NZ ETS is one of the government’s main tools for meeting domestic and international climate policy targets.
Under the terms agreed with the Ministry, NZX and EEX will design and implement the NZ ETS platform to manage the regular auctioning of New Zealand emissions units on behalf of the government.
Development of the managed auction platform is expected to be completed by the first scheduled NZ ETS auction in March 2021.
“Carbon pricing is one the most effective ways to reduce emissions,” says EEX chief Peter Reitz. “The combined synergies and unparalleled experience of NZX and EEX will add a new dimension to the NZ ETS and auctioning will help bring carbon costs into the mainstream of NZ business and the economy.”
EEX currently develops, operates and connects markets for energy and related products, offering contracts on power, emission allowances, freight and agricultural products.
NZX and EEX announced a co-operation agreement in December 2019, with a focus on securing new opportunities in the New Zealand emissions market.