Traded volumes in the Australian carbon offset market surged to a record high in January, with almost 550,000 units traded in OTC spot and forward markets, a 56% increase on the previous high recorded in July 2021. Despite the uptick in traded volumes, prices for Australian Carbon Credit Units (ACCUs) softened over the past fortnight – on much larger parcel sizes (20-50k) – suggesting that sellers have reached a happy level of price support to service higher volumes. The surge in traded volumes has been driven by new entrants seeking to capitalise on bullish momentum attributed to Australia’s net-zero target and rising prices for low-carbon assets. In particular, prices in the EU ETS have flirted with the €100 (A$160) barrier over recent days, reaching a record intraday high of €98.49/t on Tuesday (A$157), leading many local investors to view the Australian market as undervalued.
This report provides a snapshot of current activity in the Australian and international voluntary carbon markets, including spot and forward price dynamics, offset issuance and voluntary cancellations. Analysis considers Australian Carbon Credit Units (ACCUs) and voluntary offsets across key international registries including Verra, Gold Standard, the American Carbon Registry, and the Climate Action Reserve.
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