Prices for Australian Carbon Credit Units (ACCU) have seen an increasing divergence between generic ACCUs (industrial, landfill gas) and Human Induced Regeneration (HIR) ACCUs over the past fortnight, with nature-based HIR units continuing to form the bulk of traded volumes behind strong voluntary demand. The brokered market saw little movement last week after Labor passed its Climate Change Bill through the House of Representatives. The Bill will now be tabled in the Senate when parliament next sits in September, while market focus turns to meeting Labor’s 43% emissions reduction target – specifically the design of the enhanced Safeguard Mechanism framework.
In this update we discuss the passage of Labor’s Climate Change Bill, including market reaction, and the next steps for consultation on the Safeguard Mechanism scheme.
