UPDATE: Domestic prices fall sharply as increased supply weighs down the market, further ERF reform looms

Australian Carbon Credit Unit (ACCU) prices fell across key categories as an increase in supply struggled to find matching demand at previous price points. In particular, the resumption of issuance to Human Induced Regeneration (HIR) projects – the first since January – and the re-opening of the ERF exit window has again seen new supply weigh down the market, with prices for Generic ACCUs falling to a new 3.5-month low. Looking ahead, supply-side uncertainty may continue to grow as the government implements the recommendations of the Chubb Review, with changes to ERF purchasing arrangements expected over the second half of the year. International markets saw a slight turnaround in the fortunes of REDD+ avoided deforestation projects as buy demand materialises at lower price levels.

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.

First HIR issuances since January 

After a pause over 2023, issuance to HIR projects has now resumed as the Regulator takes steps to implement