Carbon Markets

MARKET MONTHLY: Well-offered carbon market sees prices decline over February, eroding YTD gains

Total carbon traded volumes of over 2.6 million were reported via our Survey Panel in February, flat month-on-month (MoM), with the composition of activity shifting heavily towards the spot market, countering a heavy decline in derivatives volumes. Despite some larger compliance-led spot parcels later in the month, a well offered market – bolstered by SMC issuances – saw prices break through recent support levels, eroding year to date (YTD) gains. More broadly, forward momentum remains tempered by the 2026-27 Safeguard Mechanism review, and lingering uncertainty around possible changes to key policy settings.

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

If you have any questions on this article, please contact our Client Services team.

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