D.he energy exchanges from Germany and New Zealand cooperate. As it became known on Wednesday, EEX from Leipzig and NZX, based in Wellington, will jointly auction certificates that entitle the island nation to emit one ton of CO2.
Together they were awarded the contract by the New Zealand Ministry of the Environment. The starting shot is planned for March 2021, the regular term is four years and can optionally be extended by two years.
The EU and New Zealand are pursuing similar approaches when it comes to pricing CO2. The local certificate trade was introduced in 2005 as the first of its kind in the world, New Zealand followed three years later. There are now almost 30 trading systems in the world. All of them are based on the idea of increasing the price of CO2 emissions at the source, thus stimulating investments in climate-friendly alternatives and at the same time leaving pricing to the market.
But while in the EU power plants and industrial companies have always had to acquire certificates – intra-European air traffic was included in 2012 – trade in New Zealand initially only applied to forestry. Only over time did it expand. It now also records fossil fuels in the transport sector. Methane-intensive livestock farming is on the other hand, so that coverage in New Zealand, as in the EU, has so far been limited to 40 to 45 percent of all greenhouse gas emissions.
EEX is also active in North America through its subsidiary Nodal Exchange. It is also trying to gain a foothold in China, which is also planning a certificate trading following pilot projects in some provinces.