MARKET MONTHLY: ACCU issuance hits record high in FY24, traded volumes fall to a 9-month low in July

The Australian Carbon Credit Units (ACCUs) market saw a decline in both prices and traded activity in July, with total traded volumes (spot and forwards) falling to a nine-month low of 1.4 million units, marking the lowest monthly traded volumes since October 2023. Derivatives activity remains concentrated in the forwards market, with options activity relatively subdued. Sporadic buying demand led to volatility in our Generic ACCU (benchmark) price assessment, with our volume weighted average price (VWAP) declining to a monthly low of $33.05/t, before bidding returned to lift prices to a 3-month high mid-month, while activity for Human Induced Regeneration (HIR) ACCUs remains constrained by a lack of market depth. Notably, analysis indicates that FY24 marked a marked a new record for ACCU issuance, a 19% increase from the previous year, surpassing the previous record set in FY 22.

RepuTex’s monthly State of the Australian Carbon Market provides a detailed review of activity in the spot and forward ACCU markets, including pricing and traded volumes for spot, forward and options contracts, along with market depth and net market balance.

This report is published under our Australian Carbon Intelligence service. Click below to access the report, or click here to take