New Zealand, 7 December 2022 –The Government’s latest quarterly online carbon market auction – operated by the NZX for the New Zealand Emissions
Trading Scheme (NZ ETS), has today surpassed NZD$3 billion New Zealand Units (NZUs) sold.
Total auctions have raised NZD$381,175,000, with today’s NZU carbon price settling at $79.00 NZD. This is approximately
a 119% increase since the first managed auction in March 2021, proving demand to be high and showing the important role
of auctions in the functioning of the NZ ETS.
New Zealand platform designers, Ackama, say this latest auction is a significant milestone for the NZ ETS managed
auction platform, which is designed to encourage green investment, fund energy transitions, set a carbon price and apply
pressure on the market around carbon usage.
“Our team has been incredibly proud to be a part of the project that launched the NZ carbon auction market and to ensure
the platform’s ongoing stability,” says Breccan McLeod-Lundy, Ackama CEO.
The New Zealand Managed Auction Service (MAS) has brought greater clarity and transparency to how the Government
allocates emissions allowances and regulates the market. The creation of the managed auction platform, allows carbon
emitting businesses to choose their own carbon strategy through improving their operations to reduce emissions,
providing their own offsets, or paying for NZUs. Over time fewer NZUs will be available in the marketplace – encouraging
a transition to better industrial practices with the goal of creating a net zero carbon emissions economy.
Ackama, working with the NZX and European Energy Exchange (EEX), were tasked with building a robust and secure platform
for the Ministry for the Environment, designing the digital platform and background systems that manage the auction,
settle the proceeds of the auction as well as provide operational support through the provision of a secure subscription
service.
With an emphasis on the importance of an excellent user experience for those seeking to participate in the auction
process, Ackama’s role was to ensure that the service was accessible, straightforward and that participants had
confidence in the process and the outcome.
Breccan McLeod-Lundy describes the project as hitting the sweet spot for his company – designing a large and complex
system that has an important cause.
“Ackama, as a socially-focused technology company, is proud to deliver technology that engages with major challenges
like climate policy. The auction results mean the carbon unit price has increased and demand has been strong, indicating
the strong role the ETS plays in NZ firms tackling climate change and their emissions plans.”