Understanding Carbon Pricing in New Zealand's Gas Market

As New Zealand's energy landscape evolves, we're committed to providing practical tools that help you make informed decisions. If you're considering gas procurement through our market, understanding our carbon-inclusive pricing approach will help you connect seamlessly with New Zealand's energy future.

Working Together: Two Market Approaches

Traditional Supply Agreements have served New Zealand's industrial communities well, typically offering:

  • Separate gas commodity and carbon pricing components
  • Independent management of commodity and carbon price risks
  • Billing structures with distinct line items for gas and New Zealand Units (NZUs)

emsTradepoint's Market supports growing businesses with a streamlined approach:

  • Integrated pricing that includes gas and carbon
  • Transparency that supports energy portfolio decision-making

Practical Example: Current Market Dynamics

With NZUs currently around $57 per unit and natural gas emissions at 0.054208 tonnes CO₂-e per GJ, here's how the numbers work together:

  • Carbon component: $3.09/GJ
  • Natural gas spot price (carbon inclusive): $20.00/GJ
  • Underlying gas price (ex-carbon): $16.91/GJ

This means carbon represents approximately 15.5% of total energy costs.

Connecting Your Business with the Right Comparisons

To support accurate decision-making when evaluating emsTradepoint against existing arrangements:

Complete comparison approach:

  • emsTradepoint inclusive price vs (gas-only price + carbon charges combined)

Incomplete comparison:

  • emsTradepoint price vs gas-only contract pricing

Getting this right ensures your business is comparing like with like as we work together toward New Zealand's energy transition.

Partnering for Success

We're here to support your energy decisions. Our team works collaboratively with businesses transitioning to our market, providing practical tools to help you understand how emsTradepoint's pricing compares with your current arrangements.

Together, we're building a more transparent and efficient energy market that supports New Zealand's growing and prosperous future.

Carbon pricing reflects current NZU market conditions. Natural gas emissions factor (0.054208 tonnes CO₂-e/GJ) is based on Ministry for Business Innovation and Employment data, supporting consistent and reliable energy planning across our communities.