Carbon Markets

UPDATE: Prices stabilise after downturn, is Generic / HIR convergence here to stay?

Our latest Carbon Weekly report has now been published, reviewing activity in the Australian and international carbon markets for the period 2-5 April 2024.

March recorded a monthly high for spot volumes in 2024, with over 2,100,000 units trading, a 14-month high dating back to January 2023. Following a strong downturn in pricing, last week saw prices stabilise, with Generic and HIR prices broadly trading together as the market found a new level between $33.50-34.00. HIR closed the week 0.15 below Generics, as markets tightened across the week. As we flagged in our recent supply outlook, as the supply of low-cost avoidance credits (currently making up the Generic basket) are exhausted by least-cost demand, HIR is the next cab off the rank in terms of the most liquid, low-cost product available. This suggests that while negative media kickstarted the recent downturn, the convergence in pricing may not be a temporary blip. Despite the recent downturn for HIR and Generic prices in the brokered market, developers of more illiquid / premium products remain undeterred, with many sellers favouring long-term offtake agreements.

RepuTex’s Carbon Weekly report analyses recent activity in the Australian and international voluntary carbon markets, including our ACCU spot price

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