Simon Watts: Climate Change Minister on the Government's latest carbon credit auction

The Mike Hosking Breakfast

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12d ago 5:42

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The latest carbon credit auction found little success, but the Climate Change Minister says there's still some positives.

The Government’s auction attracted no bidders, increasing the chances of millions of tonnes of permits going up in smoke come December.

The Government has announced measures to address the issue, shrinking the number of permits available over the next five years in an effort to flush out surplus credits.

Minister Simon Watts said that there is demand for the credits, as there is an active secondary market that is trading with good liquidity.

He said that the function of the government’s market is to introduce supply to the market if necessary, and the purpose of the credits is to reduce emissions, not generate revenue for the government.

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