Carbon Markets

UPDATE: Chubb Review focuses on improved governance, no material supply-side changes

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

The final report of the Independent Review of Australian Carbon Credit Units (ACCUs), led by Professor Ian Chubb, has today been released. The review makes 16 recommendations, focusing on improvements to the governance, structure, and transparency of the Australian carbon offset crediting scheme, with the integrity of key ACCU methodologies found to be generally “sound”.

While some stakeholders have suggested that moves to restore integrity to the ACCU market will lead to a marked reduction in ACCU supply, and a sharp increase in ACCU prices, we believe that outcomes of the Chubb Review will have a more nuanced impact on the supply landscape. As flagged in our most recent Carbon Market Outlook, potential reductions in crediting are expected to be offset by the annual growth profile of ACCU issuance, and the reality that many ‘at risk’ methods, such as Avoided Deforestation, are nearing the conclusion of their crediting periods and are therefore already assumed to cease crediting within our business-as-usual expectations.

In this update, we discuss the key outcomes of the Chubb Review, along with potential impacts on market prices and forward dynamics.

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

    UPDATE: Liquidity, prices continue to rise as bullish sentiment drives record traded volumes

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

    The Australian Carbon Credit Unit (ACCU) market saw strong gains in both price and volume […]

    Research Insights | January 23rd, 2023
  • Carbon Markets

    UPDATE: ACCU prices rise as Safeguard Mechanism position paper spurs market confidence, forward activity

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

    Market certainty brought about by the release of the Safeguard Mechanism reform position paper, and […]

    Research Insights | January 16th, 2023
  • Carbon Markets

    IN FOCUS: Safeguard Mechanism policy threads the needle to addresses structural concerns

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

    The government yesterday presented its detailed design proposal for the Safeguard Mechanism emissions compliance framework, […]

    Research Insights | January 11th, 2023
  • Carbon Markets

    ON POINT: Summary of proposed Safeguard Mechanism 2.0 policy positions

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

    The below summary of proposed policy positions is derived from the Government’s policy position paper, […]

    Research Insights | January 11th, 2023
  • Carbon Markets

    MR: Safeguard Mechanism reform to trigger a “structural change” in Australia’s carbon market

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

    MELBOURNE, January 10, 2023 – The government has today presented its detailed design proposal for […]

    Research Insights | January 10th, 2023
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone