Carbon Markets

UPDATE: ACCU prices fall to 6-month lows, derivatives activity eyes 2025 federal election

Our latest Carbon Weekly report has now been published, reviewing activity in the Australian and international carbon markets for the period January 20 – 24 2025.

The Australian carbon market continued to see strong trading momentum last week despite a lack of engagement from liable entities, as volumes held well above recent averages ahead of the Australia Day and Chinese New Year holidays this week. Meanwhile, weekly derivatives volumes reached a 4-month high, with increased hedging activity concentrated on key election dates.

In this Carbon Weekly report, we analyse recent activity in the Australian and international voluntary carbon markets, including our ACCU (Australian Carbon Credit Unit) spot price assessments, method spreads, forward activity, and traded volumes.

Spot prices fall to 6-month lows despite robust volumes

Traded volumes throughout the Australian carbon market rose for the third consecutive week, totalling 1.5M units last week, 69% above the 6-month rolling average of 860k.

Derivatives market volumes elevated to their highest since late September 2024, reaching 586k units, driven by a record week of put-option volumes (500k).

Meanwhile, spot market volumes totalled 870k units, with Generic No-Avoided Deforestation (No-AD) ACCUs leading at 68%, following record daily volumes of 420k mid-week. Remaining spot volumes

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