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A New Zealand-based carbon trading market, which hopes to attract global players, is set to start operating from the middle of 2008, one of its directors said today.
The market, known as TZ1, is in the last stages of getting the regulatory settings finalised with the government, and is targeting a June 2008 launch said Joanna Silver, one of its new executives.
"That's purely because it's important the market is credible and is regulated," Silver told Reuters, adding: "You need that robust framework to get the international participation that's necessary for a healthy market."
The market has appointed three senior executives, including the former boss of New Zealand's largest electricity and gas distributor Vector Ltd , Mark Franklin, as chief executive.
A carbon market allows countries or companies to buy or sell rights to emit greenhouse gases.
The stock exchange operator, NZX Ltd is providing the initial funding for the market, and it will remain a cornerstone shareholder.
The company is examining options for the capital structure of TZ1, which include bringing in other shareholders and a public float.
The new market will use NZX's trading infrastructure, with clearing and settlement facilities in a testing phase, Silver said.
- REUTERS
