UPDATE: Carbon Offset Market Report – Generic ACCUs trade in record volumes as Safeguard firms enter the market

As the consultation period for Safeguard Mechanism reform comes to a close, both Generic (landfill gas, avoided clearing) and Human Induced Regeneration (HIR) ACCU prices have increased on improved liquidity as Safeguard liable entities begin to enter the market to execute their offset accumulation strategies in advance of future regulatory changes, and expected impacts on market pricing. In line with the uptick in traded volumes, prices for both Generic and HIR ACCUs increased on the week, with spread interest between HIR and Generic ACCUs likely encouraging the upwards movement of HIR ACCU prices in recent days. Meanwhile, the international voluntary markets have seen a downturn in sentiment over the past week as fears of recession in Europe grow, and cancellation rates come off.

Safeguard Mechanism front of mind as spread tightening encourages HIR ACCUs to trade

Traders and market participants eyeing up the spread between Generic and HIR ACCU pricing have started to move on HIR contracts in recent days, with over 190,000 HIR ACCUs trading over the shortened week, from a prior price of $33.00/t on the 13^th of September to a high of $34.25/t on the 21^st. The spread between the two products had tightened