MARKET OVERVIEW
As the first Emissions Reduction Fund auction approaches on April 15-16, a number of new methods have been finalised for industry, however, to date there have been no new projects registered for methods outside of the Carbon Faming Initiative.
A small number of ACCUs were issued over February reporting period, with the formal conclusion of the CPM on February 2 leading to a 99 per cent fall in ACCU issuance (from January) due to the gap in demand to purchase credits, running from the end of the CPM true-up period until the first ERF auction in mid-April.
Currently, 207 projects are registered to participate under the ERF from a total of 106 participants. Of the 207 projects registered, 161 projects have been issued credits (from 83 participants), with 46 registered projects yet to be issued credits, therefore looking towards the ERF to generate ACCUs.
Over 14.5 million ACCUs have now been issued (as of February 26, 2015), with over 20,000 credits issued over the February reporting period (31 Jan 15 – 26 Feb 15), driven by the approval of 5 new projects, down from 11 last month. Following the CPM true-up, a small number of these ACCUs remain in the market, eligible to be bid into the ERF under an immediate delivery contract.
