OUTLOOK: Long-term Australian carbon price, supply and demand outlook

The price of Australian Carbon Credit Units (ACCUs) has risen 11 per cent calendar year-to-date, reaching a record high of $18.50/t in Feb-Mar on momentum that the federal government will adopt a more ambitious net-zero emissions reduction target ahead of the 26th UN Climate Change Conference (COP) in November.

The recent surge in prices suggests that Australian carbon offsets are undergoing a fundamental repricing as the market begins to account for a more ambitious net-zero emissions goal, despite the absence of a policy announcement from the government.

The adoption of a net-zero target will be broadly supportive for ACCU contract