Bearish sentiment continues to prevail in the Australian carbon market as traders (again) reacted to new data released by the Clean Energy Regulator, sending prices lower – but are market participants jumping at shadows?
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 drivers, our latest pricing and benchmarks, and our daily forward curves.
Late sell-off sees Generic (No-AD) price fall to lowest since July 2024, first SMCs trade
Total traded volumes across the Australian exchange-traded and OTC carbon markets rose to 1.03M last week, inclusive of SMCs, rebounding back above 1M (+725k WoW), to climb 12% above the 6-month rolling weekly average of 921k.
The spot market saw a year-to-date high 860k traded, with volumes concentrated towards Generic No-Avoided Deforestation (No-AD) ACCUs (57%). Trading for the first time (refer to the below section), SMCs accounted for a 30% share, while HIR ACCUs (10%) and Generic ACCUs (3%) made up the remainder.
As we noted on Thursday, the first SMC trade was reported in the brokered market last week, printing at $34/t in 170k, a discount to our Generic ACCU
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