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Carbon Markets

SCENARIO ANALYSIS: Australian carbon price, supply and demand outlook – Dec 2025

Our latest Carbon Market Outlook (CMO) for the Australian carbon market has now been published. This quarterly CMO presents our detailed modelling and expectations for Australian Carbon Credit Unit (ACCU) and Safeguard Mechanism Credit (SMC) prices over a 10-year horizon to 2035, and underlying supply-demand fundamentals.

This Scenario Analysis report accompanies our quarterly Carbon Market Outlook (CMO), modelling alternative price pathways and sensitivities for the development of the Australian carbon market.

Our core scenarios investigate alternatives for the “pace” and “scale” of onsite decarbonisation by Safeguard Mechanism facilities – the material driver of medium-term carbon credit demand. Specifically, we consider three decarbonisation pathways for covered sectors, including our Progressive, Accelerated and Slow decarbonisation scenarios.

Additional policy and market sensitivities are also depicted, accounting for the upper bound of Australia’s 2035 emissions target (70% national emissions target by 2035).

Other links:

These reports are published under our Australian Carbon Intelligence service. Access the reports below, or take a tour of our EnergyIQ platform.

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