Issuance of Australian Carbon Credit Units (ACCUs) surged 11% over the Novmeber reporting period to 10,595,473, with supply crashing through the 1 million ACCU barrier for the month, driven by compliance demand under the former CPM.
While policy certainty has returned to the market following the formal passage of the CFI Amendment Bill, caution continues to reign supreme, with ongoing market confidence wholly dependant on the ERF benchmark price.
We continue to anticipate that fortune will favour the brave in the early market, with low competition in early auction rounds to potentially result in higher contract prices and greater scope for strategic bidding.
