NZX and the European Energy Exchange (EEX) have announced a Co-operation Agreement with a focus on securing new opportunities in the New Zealand carbon market.
This is a market that enables participants such as businesses with carbon emissions and forest landowners to efficiently manage their obligations under the New Zealand Emissions Trading Scheme – the Government’s main tool for meeting domestic and international climate policy targets.
NZX CEO, Mark Peterson, says new opportunities are opening up as the New Zealand emissions market matures.
“We believe that the transparency and security of a regulated market will add value to the existing carbon market in New Zealand,” says Peterson. “We know that markets that support our country’s climate policy targets and assist in risk management will become more and more important. This Co-operation Agreement with EEX will bring their deep expertise into play as we continue to work with existing long-standing domestic participants to support growth, development and broaden distribution.”
EEX CEO, Peter Reitz, says New Zealand is an attractive market with a well-recognised Emissions Trading Scheme underpinned by a stable regulatory environment.
“International co-operation is crucial to exploit the full potential that carbon markets can offer,” says Reitz. “We’re excited to apply our experience from the European and North American emissions markets together with NZX in the New Zealand market.”
The co-operation between NZX and EEX is a marriage of world-class expertise in carbon markets, with a highly regarded New Zealand-based exchange. This offers the New Zealand Government and carbon market participants access to regulated platforms, products and services that are fit-for-purpose internationally, and tailored specifically to the local market context. Beyond the New Zealand carbon market, both NZX and EEX will be jointly exploring areas for co-operation in other regions and/or asset classes.