CLASSIFICATION
Meeting with Jarden – 26 July 2024
Purpose
1. This aide memoire provides background information for your meeting in Auckland with
executives from Jarden Group Limited (Jarden) scheduled for Friday 26 July 2024
, from
2-2:30pm.
2. Jarden has indicated four agenda items for discussion. These are:
i) Carbon market update
ii) Feedback and insights from the previous NZU auctions
iii) Policy direction
iv) The inclusion of forestry in the NZ ETS
Context
3. Founded in 1960, Jarden is a New Zealand-based investment and advisory group
offering share brokering, portfolio management, investment banking, and financial and
economic research services. Jarden is the operator of the CommTrade centrally cleared
trading platform, one of the three privately provided trading platforms for New Zealand
carbon units (NZUs). Carbon Match and emsTradepoint are the other two platforms.
Recent media has indicated that emsTradepoint may close or be sold.
4. 9(2)(f)(iv)
6. Biographies of Jarden attendees are attached in Appendix One. They are:
• 9(2)(a)
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Topics that may arise in discussion and potential questions
7. On Wednesday morning 17 July 2024, Jarden reduced price visibility on their
CommTrade platform, removing last / fix price from the free to public viewer.
Coincidentally, this was the morning of the general release of the ERP2 discussion
document. Transparency of market trading information is important, and this
development was a reduction in transparency. The three current NZU market secondary
market platform operators make differing levels of information available both on a free to
view and separately on a paid subscriber model. Existing providers and their offerings
may change over time. Improving visibility of fundamental market information is central
to the ongoing market governance work and improving market confidence. You may
wish to ask about this decision by Jarden.
8. 9(2)(ba)(i)
9. Jarden may raise the upcoming ASX environmental futures launch, which includes
NZUs. This launch is expected on 29 July 2024. Initial margin levels have set futures for
Australian carbon credit units (ACCUs) at 21%, Australian Large Energy Certificates
(LGC) at 22%, and NZUs at 43%. This high margining of 43% is indicative of current
challenges to the transparency of New Zealand carbon price and volumes. gThe market
governance work attempts to address this.
10. Jarden’s wealth management advisors may provide insight into their aggregate client
views on investing in New Zealand in climate and the NZU market specifically.
11. 9(2)(g)(i)
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