The cost New Zealand will face in meeting its commitment under the Kyoto Protocol is being reduced by international trading conditions.
New Zealand has to bring its net greenhouse gas emissions back to 1990 levels and will do this largely by purchasing emissions credits mainly on the international carbon market.
OM Financial carbon trader Nigel Brunel says the most commonly available carbon offset, the Certified Emissions Reduction, has fallen in price by a third in the past few months.
He says industries are reducing the level of their purchases because the recession is bringing lower production levels and therefore lower emissions.
