New Zealand Carbon Prices Jump to 5-Month High on Overhaul Plan

New Zealand carbon prices surged after the government announced plans to overhaul the national trading system, which has been in limbo due to persistent oversupply.

The spot price of carbon units climbed as much as 9% to NZ$61 ($37) a ton Tuesday, the highest since March. The government plans to more than halve the number of units to 21 million from 45 million between 2025 and 2029 to stimulate businesses to reduce emissions.

“This is a positive move for carbon markets and for the climate,” said Rich Gilmore, chief executive officer of investment manager Carbon Growth Partners. “It will ...