MARKET OVERVIEW
In line with expectations, Australian Carbon Credit Unit (ACCU) supply grew significantly over the January reporting period, with a 116 per cent increase in supply, driven by momentum from proponents seeking to sell offsets under the Carbon Price Mechanism (CPM), which concluded on February 2nd.
Growth in ACCU supply was driven by vegetation projects, specifically savanna burning and regeneration of forest projects. Over 14.5 million ACCUs have now been issued (as of January 30, 2015), with an additional 2.7m credits injected into the market over the January reporting period (24 Dec 14 – 30 Jan 15), driven by the approval of 11 new projects, down from 13 last month.
As the market prepares for the first auction under the Direct Action Plan it is expected that a number of new methods will be formally regulated, while new industry proponents are expected
