The Australian Carbon Credit Unit (ACCU) market has seen low volumes traded over the last week, partially due to market participants watching the New Zealand Unit (NZU) auction across the Tasman, and partly due to continued uncertainty in response to the Chubb review. It remains to be seen how or if forward supply will be constrained, subject to how quickly the market is required to transition to a “high integrity” system. In parallel, generic volumes comprised over 85% of the market in the last week as the Safeguard Mechanism reform gathers momentum.
Internationally, NZUs and EUAs have both come off, with the NZU auction underperforming relative to the expectations of many in the market, and the EUA market continuing its sharp fall on the back of worsening economic conditions and an expected EU support package that could release credits into the market.
