ACCU prices and activity softened last week as the market brushed off supply concerns following the latest exit window results. With eligible facilities now largely holding all Safeguard Mechanism Credits (SMCs) on hand for cancellation or sale, in this update, we discuss SMC pricing – and the integrity of units – how we expect SMCs to be monetised in the traded market.
In this Carbon Weekly report, we break down activity in the Australian exchange-traded and OTC carbon markets (spot and derivatives) over the past week, including key trends and market drivers, our latest pricing and benchmarks, and our daily forward curves.
ACCU prices ease as market brushes off CAC supply concerns
Total traded volumes across the Australian exchange-traded and OTC carbon markets fell to 305k last week, less than half the previous week’s volume (-427k WoW), and only marginally above the subdued volumes traded over the public holiday affected week of the 27th Jan (226k).
The spot market saw the entire 305k transacted. Generic No-Avoided Deforestation (No-AD) ACCUs led at 49%, followed by Generic ACCUs (26%) and HIR ACCUs (25%).
The market largely dismissed supply concerns from the fourth carbon abatement contract (CAC) window results, which saw traded
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