The price of Australian carbon offsets broke through $17 a tonne on Wednesday, reaching a 12-month high, spurred by increased trading activity by high emitting companies looking to voluntarily offset their greenhouse gas emissions.
RepuTex’s Australian Carbon Credit Unit (ACCU) benchmark price index climbed 3% on the day, closing at $17.15/t, an increase of 8.5% from low of $15.80 recorded in June . Having passed the key $17/t resistance barrier, where to next for offset prices?
In this article, we review the key factors impacting our ACCU offset price expectations for FY21, and longer-term dynamics to 2030.
Market sentiment – PM inches closer to net zero by 2050
On Monday, the Prime Minister Scott Morrison gave his clearest indication yet that the Coalition would adopt a net-zero emission target by 2050. Speaking at the National Press Club, Mr Morrison indicated that it was now his preference to meet net-zero emissions by mid-century, or beforehand, suggesting that a net zero emissions target is likely before the next federal election (between August 7, 2021 and 21 May 2022).
In a move potentially designed to soften opposition to a net-zero target within his own ranks – specifically the Nationals and the hard Right
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