Pricing across key methodologies fell through the second half of May as ACCU holders began to sell down into lower bids on the back of low liquidity, increasing supply as the pause on HIR issuance ended, and limited involvement from large compliance buyers. Weekly volumes remained at lower levels seen through the second half of April, with total volumes lower month-on-month despite a notable uptick in forward transactions, and increased trading activity within “other” methods. Looking ahead, the entry of compliance buyers remains the elephant in the room for local market participants, while potential changes in government ERF purchasing arrangements remain a key watch – with supply side effects possible.
The State of the Australian Carbon Market provides a monthly snapshot of activity in the Australian carbon offset and compliance market, reviewing key events, pricing and traded volumes for spot and forward contracts, along with our short-to-medium term outlook for the Australian market dynamics. Analysis also considers activity in the international voluntary carbon market, including voluntary cancellations and monthly pricing trends across key international registries and contracts.
If you have any questions on this report, or you would like to set up a briefing, please contact our Client Services team via email.
The RepuTex Team
Australian Emissions Markets