Carbon Markets

UPDATE: ACCU prices retrace from 13-month high, HIR to Generic spread trades negative

Prices in both the Australian and international carbon markets fell last week as lower liquidity saw prices in the red for most of the week. In the domestic market, prices retraced from a 13-month high on initial profit-taking after recent bullish activity. The long lead time for large compliance entities to enter the market continues to manifest, with range-bound fluctuations in prices likely until stronger buying demand firms up. Despite the active end to the week, total traded volumes were down week on week, while weekly issuances surpassed 300k for just the second time this year, with 2023 issuances tracking well below 2022 levels.

This report analyses current activity in the Australian and international voluntary carbon markets, including spot and forward price dynamics, and prices by underlying project methodologies. 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.

ACCU prices fall on lower volumes, profit-taking after 13-month high

Generic ACCU prices initially opened the week $0.25 higher at $39.25/t – a new 13-month high stretching back to 3 March 2022 (the day prior to the announced “ERF exit” framework by the former

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