What’s happening in refrigerant July 2019?
At $22.50 the price of the New Zealand carbon credit (NZU) dropped to its lowest since August 2018 as the market responded to those cashing in on the NZU’s sustained pricing at the $25.00 ceiling. Refrigerant prices drop in response.
Meanwhile the New Zealand Government seeks to make changes to the ETS that will remove the current $25 fixed price option price ceiling at the point when auctioning begins, or no later than 31 December 2022.
In global news, the World Bank have released a media statement stating just 1% of global greenhouse gas emissions are at prices likely to drive the emissions cuts needed to preserve life as we know it. The bank believes credits need to be within the $NZ60 to $120 by next year, and by 2030 trading between NZ$75 – $150– well above current trading.
Why is the NZU important for the cost of refrigerant?
Importers are required to offset the cost of the emissions produced by refrigerants as part of our international obligations to reduce global warming impacts. The importer of the product must surrender (buy) carbon credits to offset emissions, with this cost added to the wholesale price. How much added cost you can expect will depend on three things:
- The refrigerants Global Warming Potential (GWP)
- The cost of carbon credits and
- The amount of refrigerant you use (or leak)
Find out how it works at Managing Rising Refrigerant Costs
That’s how many kilograms of CO2 EcoChill customers have removed from the New Zealand environment by moving from high GWP refrigerants to natural refrigerant solutions.