The passage of the Safeguard Mechanism (Crediting) Amendment Bill triggered a positive reaction by the market in late March, with prices for Generic and HIR ACCUs trending up over the month. Higher prices were underpinned by a significant uptick in traded volumes, with over 5 million units traded in the brokered markets over Q1 2023 – 3x the previous quarter (+206%), and 5x the same quarter last year. Traded volumes in March were down MoM, but were 40% above our rolling FY23 monthly average, indicating increasing liquidity in the market, driven by strong demand for Generic ACCUs from speculative and liquidity providers ahead of future compliance demand.
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.
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The RepuTex Team
Australian Energy Markets