Spot volumes again lifted in the Australian carbon market last week, led by delta hedging for new options positions, causing prices to lift over the week. Of note, the first swap was recorded pricing HIR ACCUs at a discount to our Generic ACCU benchmark. Elsewhere, the derivatives market also saw higher flows as participants continue to position around key events over 2025.
RepuTex’s Carbon Weekly report breaks down activity in the Australian exchange-traded and OTC carbon markets (spot and derivatives) over the past week, including key trends and drivers, our latest pricing and benchmarks, and our daily forward curves.
New option positioning and delta hedging through spot market boosts prices and activity
Total traded volumes across the Australian exchange-traded and over the counter (OTC) carbon markets increased to 1.08M last week (+404k WoW), 54% above the current compliance year-to-date weekly average (701k), and well above the weekly average for the same period last year (296k over July 2024).
Spot market volumes lifted to 542k (+217k WoW) with Generic No-Avoided Deforestation ACCUs again dominating spot traded activity (73%), followed by Generic ACCUs (10%), HIR ACCUs (7%), Generic/HIR swap trades (5%) and Safeguard Mechanism Credits (SMCs) (5%).
Feedback suggests that the majority
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