Carbon Markets

UPDATE: ACCUs resilient as INFM method released, lobbying intensifies for Safeguard Mechanism review

The Australian carbon market eased marginally over the week holding at year-to-date highs against a fall in turnover. On Friday, the federal government approved the contentious new Improved Native Forest Management (INFM) method, developed by the New South Wales Government. In this weekly update, we take a closer look at the new method, and summarise recent lobbying by industry and green groups ahead of the upcoming Safeguard Mechanism review.

RepuTex’s Carbon Weekly report breaks down activity in the Australian exchange-traded and OTC carbon markets (spot and derivatives), including recent trends, drivers, and our latest spot and forward pricing benchmarks.

Market softens as Generic and HIR ACCUs offered lower from mid-week

Total traded volumes across the Australian exchange-traded and over the counter (OTC) carbon markets fell to 372k last week (-467k WoW), well below the year-to-date (YTD) weekly average (555k).

Spot volumes (248k, -417k WoW) again drove the bulk of activity at 66% of the weekly total, down from 79% a week earlier. Generic ACCUs made up 73% of weekly spot volumes – Generic No-Avoided-Deforestation ACCUs (55%) and Generic ACCUs (18%) – with HIR ACCUs contributing a notably heavy 27%. No SMCs traded over the week.

The Generic ACCU market softened

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