Carbon Markets

MARKET MONTHLY: ACCU market softens amid holiday slowdown, hedging of forward regulatory risks on the rise

Our State of the Australian Carbon Market report for January 2025 has now been published, reviewing activity in the Australian carbon market over the last month.

Total ACCU traded volumes reported under our Survey Panel process (excluding confidential submissions) reached 3.7M in January, a slight increase MoM, despite the holiday-driven slowdown tempering some momentum. RepuTex’s Generic ACCU (benchmark) price assessment softened to a five-month low over the period in response to softer compliance demand and higher expected SMC issuance, with some participants reactive to unadjusted data published by the CCA, and RepuTex modelling of the impact of coal mine methane reforms on SMC creation, published in December. Notably, market analysis also indicates that participants have begun to hedge forward regulatory risks related to Australia’s upcoming federal election.

This monthly State of the Australian Carbon Market provides a comprehensive review of trading activity in the ACCU spot and derivative markets over the past month, including pricing and traded volumes for spot, forward and options, analysis of market depth, net market holdings (inventory), and our proprietary ACCU forward curves.

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