The announcement of new exit arrangements for fixed delivery Carbon Abatement Contract (CAC) holders invoked a mixed response in the Australian carbon market last week as participants weighed impacts on the soft floor price, and supply-demand fundamentals. This played into a choppy price response, with prices falling to new 4-month low, then lifting on the widest intraday range of the week.
In this update, we review the week’s activity and discuss the outcomes of our Analyst Briefing note, “What the CAC? Impact of permanent fixed delivery exit arrangements”, published on Friday.
RepuTex’s Carbon Weekly report breaks 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.
ACCUs fall to 4-month low, trade sideways as market weighs the impact of new fixed delivery CAC rules
Total traded volumes across the Australian exchange-traded and over the counter (OTC) carbon markets increased to 708k last week (+167k WoW) – remaining below the compliance year-to-date average (760k) and the weekly average over the same period last year (1.2M in December 2024 excluding holiday interrupted weeks).
Spot market volumes of 458k
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