The cheap price of carbon credits has prompted the Waitaki District Council to consider buying some to insulate itself from future price rises.
The council will need credits for the Oamaru landfill until 2016 when it closes, and also if it decides not to replant some of the forestry, including Cape Wanbrow, it is harvesting.
The finance, audit and risk committee recommended on Wednesday the council spend up to $22,000 to buy a mixture of European Union and New Zealand carbon credits. They will be used for carbon emissions from the Oamaru landfill and, if there are any left over, to meet forestry obligations.
Accounting manager Ian Wells said carbon unit prices were extremely volatile and fluctuated daily, so much so it was difficult to accurately estimate costs. However, at present prices were favourable but expected to rise. The proposal was for the council to buy 7600 European Union carbon credits, which were 32c a unit, and 6000 New Zealand units at $3.10.
The European units were cheap because they could be used only until next year. After that, New Zealand units were needed, which meant prices would probably rise.
''It is sensible to buy now,'' Mr Wells said.
The carbon credits being bought would cater for the council's present and future needs.
Chief financial officer Paul Hope said this was the first time the council had had to deal with the issue of carbon credits.
''It is not going to disappear and prices will not come down.''
