One of the key drivers of record EUA prices is the increasing role of investors, with speculative (long) positions in the EU ETS growing from 7% in Jan-18 to 33% in May-21, while long positions in the California ETS have similarly grown from 12-27% YTD.
Comparably, Australian investors are just starting to pay attention to carbon units as a low-carbon asset play, or as a fundamental hedge against climate risks in other asset classes. As uptake develops to similar levels seen in international markets, investor participation is likely to strongly shape ACCU offset prices over the decade.
In this event, our Executive Director, Hugh Grossman, discusses the outcomes of our recent Carbon Market Outlook, including the impact of increasing investor participation on forward prices, along with the implications for overall demand-supply dynamics.
Please click here to access our full Carbon Market Outlook for ACCU prices, supply, and demand from 2021-30.
Alternatively, please contact a member of our Client Services team to learn more about our services for the Australian carbon offset market, or click here to take a tour of our EnergyIQ platform.
The RepuTex Team
Australian Electricity Markets