The incoming Government is expected to contend with a billion-dollar hole in its books created by the upcoming ETS auction. 

The final auction of units under the Emissions Trading Scheme for 2023 isn't expected to clear on December 6.

Most participants in the carbon market expect this auction to fail, on the grounds that a full year's worth of units will need to be sold.

NZ Herald Wellington business editor Jenee Tibshraeny explains why this predicted failure will be good for the market.

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