Carbon Markets

UPDATE: Carbon Offset Market Report – ERF price rises as ACCU market reaches election crossroads

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

The Clean Energy Regulator has announced the results of the 14th ERF auction, with 7.6 million ACCUs contracted at an average price of $17.35/t, a 2.5% increase on Auction 13. Contracted volumes again failed to exceed 10 million, with the Regulator continuing to use its discretion to limit larger price increases, ultimately restricting the underwriting of higher value projects. The ACCU spot price fell 1.6% on the week with traded volumes increasing, yet market action remains slow after a heated February and March. While much of the downside risk appears to be priced into the ACCU market following the recent changes to the ERF, the 2022 federal election is likely to again impact prices. All eyes are therefore on May 21 as proponents begin to form a view of market development, and how prospects for more robust compliance demand under the ALP’s re-worked Safeguard Mechanism may impact market fundamentals.

This report analyses current activity in the Australian and international voluntary carbon markets, including spot and forward price dynamics, offset issuance and voluntary cancellations. Analysis considers Australian Carbon Credit Units (ACCUs) and voluntary offsets across key international registries including Verra, Gold Standard, the American Carbon Registry, and the Climate Action Reserve.

Restricted Access

This is a subscriber report. Please login to access this content.

Become a Carbon Insider today

Unlock our latest analysis, briefings and price information with our new Carbon Insider service.

Click below to see our plans.

Sign up for regular insights

LATEST UPDATES

  • Carbon Markets

    INSIGHTS: Election 2022 – Market impacts, and where to next for the ALP’s “Safeguard Mechanism 2.0”?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The Federal Election has been run and won, with the Australian Labor Party (ALP) confident […]

    Research Insights | May 24th, 2022
  • Carbon Markets

    UPDATE: Carbon Offset Market Report – ACCU spot and forward prices trade higher, premium units trade in volume

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The Australian carbon offset market sprung back to life last week, with renewed demand from […]

    Research Insights | May 13th, 2022
  • Carbon Markets

    UPDATE: Election scenarios – Possible outcomes and implications for ACCU prices

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    With just two weeks to run until the Australian federal election, the 47th Parliament is […]

    Research Insights | May 10th, 2022
  • Carbon Markets

    UPDATE: Options market comes to life as buyers hedge against price increases

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The options and futures market for Australian Carbon Credit Units (ACCUs) came to life late […]

    Research Insights | May 9th, 2022
  • Carbon Markets

    UPDATE: Carbon Offset Market Report – Incentive for ERF exit weakens as ACCU market softens, issuance closes in on 110 million

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The local carbon market briefly awoke from its recent slumber over the last week, with […]

    Research Insights | May 5th, 2022
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone