ALERT: Australian CO2 spot price hits record high of $18.50/t, up 12% YTD

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

The price of Australian carbon credit units (ACCUs) reached $18.50/t on Monday, a record high, driven by market anticipation of more ambitious climate targets, potentially as early as April of this year.

RepuTex’s ACCU benchmark price index is up 12% calendar year-to-date, with the current price surpassing the previous high of $17.54/t recorded in November 2019.

The surge in prices comes amid increasing interest in the carbon offset market from voluntary participants, fuelled by companies investing in offsets to meet net-zero emissions targets, and expectations that the Australian Government will set tougher targets for cutting emissions, leading to further price increases.

As noted in earlier updates, we believe that moves by the government to tighten the ambition of Australia’s emissions reduction target will continue to have the effect of boosting the price of offsets over time, creating a one-way bet for market participants similar to dynamics in the European Union Emissions Trading Scheme (EU ETS), where prices have reached a record high of €39 (A$61) on the back of the EU’s new 2030 target, and its long-term pathway to net-zero emissions by 2050.

We continue to forecast price increases over the medium- and longer-term, with market direction ultimately expected to align with our scenarios for the scale up of emissions reduction targets (1.5-2 degrees) under the Paris Agreement.

To access our latest spot price information and longer-term forecasts please login to our RepuTex Connect platform.

If you have any questions or comments, please contact our Client Services team.

Kind Regards,
The RepuTex Team
Australian Electricity Markets

Our Carbon Market Intelligence service

Our Carbon Market Intelligence service represents the most complete data and analysis package available for Australian carbon market participants, providing in-depth coverage of daily carbon spot price dynamics, supply-demand fundamentals, and our long-term price forecasts and scenarios to 2030-50. To learn more, click here.

Take a tour of our client portal

Set up a demonstration of our RepuTex Connect client portal. For more information contact our Melbourne office: via phone +61 (0)3 9600 0990 or via email.

LATEST UPDATES

  • ALERT: Australian CO2 spot price hits record high of $18.50/t, up 12% YTD

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The price of Australian carbon credit units (ACCUs) reached $18.50/t on Monday, a record high, […]

    Research Insights | February 16th, 2021
  • EU levy could impose carbon price of A$65-140 on Australian exports, with more climate tariffs to come

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The European Parliament’s environment committee last week endorsed the proposed Carbon Border Adjustment Mechanism (CBAM), […]

    Research Insights | February 10th, 2021
  • Australian carbon offset price climbs past $17/t, a 12-month high: Here’s why

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The price of Australian carbon offsets broke through $17 a tonne on Wednesday, reaching a […]

    Research Insights | February 4th, 2021
  • Carbon spot price climbs to 10-month high as pressure builds on government

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The Australian carbon spot price climbed to $16.63 per tonne on Monday, a 10-month high, […]

    Research Insights | January 19th, 2021
  • Trading range narrows for Australian carbon spot price

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The Australian carbon spot price ended the 2020 calendar year down 4.5 per cent year-on-year, […]

    Research Insights | January 13th, 2021
  • Download this free report

    To start your free download, simply fill in the below form. You will also receive our future updates, event invitations, and research insights by email.
    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone