Wednesday, March 20, 2024

Climate Change: A failing market

The first ETS auction of the year was held today, and resulted in the market failing to clear. Only 2.97 million of 3.52 million units were sold - and those at the minimum price of $64/ton. Meaning that supply is still exceeding demand - exactly as the Climate Commission warned us a week ago. Which you'd hope would result in the government listening and slashing future supply, since obviously polluters don't need it.

The other consequence is that the government didn't get much money: only $190.4 million. Meaning less money to fund their (vile and unnecessary) landlord tax cuts. So maybe that will sharpen the government's mind as well, given its foolish reliance on ETS revenue to fund its vile and unnecessary landlord tax cuts. But somehow, I suspect it won't. National is full of climate change deniers who see climate change policy - including the ETS - as "red tape". They'll be happy to see it fail, and keep failing, even if it means missing our targets (which of course they claim to still be committed to). Better the planet burn, than any of them or their donors have to change a single thing about their lives or business practices...