NZers want to buy voluntary carbon credits

Media release: 11 September 2007

New Zealanders want to buy voluntary carbon credits

Meridian Energy CEO Keith Turner today expressed delight at the public's obvious appetite for purchasing voluntary carbon credits.

After a week-long, high-profile experiment, the first household parcel of voluntary carbon credits sold on Trade Me yesterday for $3,000. At close of auction at 4pm today, the second household parcel sold for $2,000, and the third business parcel sold for $19,262.

For the first time ever, New Zealanders were given the opportunity to bid on voluntary carbon credits in an exciting new initiative led by Meridian Energy and its partners Trade Me, M-co and Landcare Research.

"It's obvious from the reaction to the auction that people are looking for new ways to do something about climate change ­ and over the past week we've determined that the New Zealand public is very interested in buying carbon credits on the voluntary market," said Keith Turner.

"After over 35,000 website hits, more than 300 bids, and hundreds of Q&As, it's clear there's real engagement from the public," said Keith Turner. "It also demonstrates that the Government is absolutely on the right track with tradable carbon rights and the formation of a carbon trading market."

Despite one of the original objectives being price discovery, the unexpected interest in the auction of these parcels sparked some tough bidding.

"These first sales were always going to be Œtrophy' sales, being the first voluntary credits on the New Zealand market. People should not assume this is going to set the future price of carbon credits," said Keith Turner.

As a result of the high prices achieved for the household parcels, the proceeds of the two sales will be donated to Project Crimson ­ a project that restores plantings of native Pohutakawa and Rata.

"Meridian Energy already sponsors this project," said Keith Turner, "but we felt this extra donation on behalf of the bidders of this first auction was a good fit ­ of course, Pohutakawas absorb carbon!"

The proceeds of the sale of the business parcel will go back into the Te Apiti wind farm.

The auction was designed to get people thinking about how voluntary carbon credits work and how families and businesses can reduce their carbon footprint and offset what they can't reduce. Meridian Energy, in partnership with Trade Me, The Marketplace Company (M-co) and The carboNZero Programme run by Landcare Research, posted for sale three parcels of Gold Standard Verified Emission Reduction Units (VERs), or voluntary carbon credits, on the Trade Me auction site last week.

Keith Turner added that Meridian is looking forward to the establishment of TZ1, so that wider trading opportunities can be introduced and can interface with global carbon markets.

At the same time as the Trade Me auction, a Registration of Interest for the remaining Meridian voluntary carbon credits was launched, where individuals, firms and brokers who have previously expressed an interest in the Gold Standard VERs are able to put in a tender. Following the close of registration on the 23rd September, Meridian will consider posting more parcels on Trade Me.

ENDS

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