The Australian carbon market has experienced a rollercoaster ride over CY22, with prices for Australian Carbon Credit Units (ACCUs) falling almost 40% since the start of the year on the back of profit taking, and the government’s announced changes to the operation of the Emissions Reduction Fund in early March.
More recently, the local market has come under fire from stakeholders that have questioned the environmental integrity of some ACCU methods, including avoided clearing, HIR and landfill gas projects, with calls for a review of ERF methodologies in order to protect the quality of the Australian carbon offset market, and ensure offsets result in real emissions reductions.
Looking forward, ACCU price expectations are now highly dependent on the assumed timeline and scale of new corporate demand, with longer-term upside – and new project development – now expected to be weighed down by a surplus of supply until forecast new sources of demand begin to accelerate.
In this webinar, RepuTex Executive Director, Hugh Grossman, discusses the current state of play in the Australian carbon market, including spot and forward prices, and supply dynamics, along with our longer-term expectations for ACCU development.
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The RepuTex Team
Australian Electricity Markets