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 prices declining on low traded volumes, while one forward transaction was recorded. At current low prices, it remains to be seen how many developers will be incentivised to exit their existing ERF contracts, particularly where proponents face more complex ‘benefit sharing’ consultations. Growing complexity, cost, and delays in applying to exit the ERF (and low prices) may therefore incentivise some proponents to deliver against their existing ERF contracts – or simply trigger their non-delivery clauses – an ironic twist which highlights the inefficiency of new ‘ERF exit’ rules. Local ACCU issuance continues to build, closing in on 110 million, while voluntary cancellations have jumped in April. Internationally, voluntary offset prices have grown over the week, with the largest gains for higher quality nature-based sequestration activities, driven by a strong increase in corporate demand.

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

    IN FOCUS: Safeguard Mechanism Credits – Flurry of changes to proposed Safeguard crediting framework

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

    The government last week tabled its Safeguard Mechanism (Crediting) Amendment Bill 2022 in the House […]

    Research Insights | December 5th, 2022
  • Carbon Markets

    UPDATE: Buy interest builds for Generic ACCUs as Safeguard Mechanism policy announcement looms

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

    Prices for Human Induced Regeneration ACCUs came off slightly last week, while Generic (Landfill gas, […]

    Research Insights | December 5th, 2022
  • Carbon Markets Electricity

    OUTLOOK: NEM wholesale electricity and LGC price forecast 2022-42

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

    Our latest Australian Electricity Outlook (AEO) for wholesale electricity and LGC prices in the National […]

    Research Insights | November 30th, 2022
  • Carbon Markets

    UPDATE: Local activity slows, but prices hold steady, as the market looks ahead to December

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

    Activity slowed in the Australian Carbon Credit Unit (ACCU) market last week, although prices have […]

    Research Insights | November 28th, 2022
  • Carbon Markets

    UPDATE: ACCU prices continue to firm as COP 27 comes to a late conclusion in Sharm el-Sheikh

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

    Prices continued to rise in the Australian Carbon Credit Units (ACCU) market last week, albeit […]

    Research Insights | November 21st, 2022
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone