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Carbon Markets Outlook

OUTLOOK: Australian carbon price, supply, and demand outlook – Technical Report, Oct 2025

Our latest Carbon Market Outlook (CMO) for the Australian carbon market has now been published. This quarterly CMO presents our detailed modelling and expectations for Australian Carbon Credit Unit (ACCU) and Safeguard Mechanism Credit (SMC) prices over a 10-year horizon to 2035, and underlying supply-demand fundamentals.

Following the announcement of Australia’s new Nationally Determined Contribution (NDC), in this CMO we consider the impact of the government’s 62-70% target by 2035, including preliminary impacts on the Safeguard Mechanism scheme.

At the lower end of the target range, we assume policy ambition does not backslide. Accordingly, we maintain our previous 4.9% baseline

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