As the deadline for the passage of the Safeguard Mechanism (Crediting) Amendment Bill comes to a head this week, talk of a compromise between the Labor Party and the Greens has increased, with the Greens expected to declare their position as early as today. Liquidity has been low in the local market as traders take a wait-and-see approach ahead of the vote this week. Should support for the Bill for forthcoming, we expect traders and liquidity providers to drive an uptick in activity, in advance of larger corporate participants entering the market over the medium-term. Internationally, liquidity has also fallen due to seasonality and low confidence in the market, with the low number of trades putting a halt to the continued fall in international VCM prices.
This report analyses current activity in the Australian and international voluntary carbon markets, including spot and forward price dynamics, and prices by underlying project methodologies. 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.