Carbon Markets

UPDATE: Short- and long-term ACCU spot price impacts of COVID-19

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

International carbon prices have tumbled amid fears that a COVID-19 induced economic downturn will curb industry demand for carbon allowances, causing a heavy sell-off by investors. In Europe, EUA prices fell over 11 per cent last week, referred to as Black Monday, reaching a low of €15.24/t (A$28), down from €29.94/t (A$54) in mid-July 2019.

Locally, the Australian Carbon Credit Unit (ACCU) spot price has continued to trade between $16.50-17/t since late-February, at low volumes, down from a four-year high of $17.50 in December-19. We view the local ACCU market as largely inoculated from the economic consequences of COVID-19, with reduced industrial output unlikely to translate into lower demand for carbon offsets given the current design of the Commonwealth’s Safeguard Mechanism.

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: Carbon Offset Market Report – Buyers ‘rush to regeneration’ ahead of ACCU review – but are HIR projects without risk?

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

    The price for Australian Carbon Credit Units (ACCUs) has continued to drift sideways, with spot […]

    Research Insights | July 4th, 2022
  • Carbon Markets

    REPORT: Modelling Potential Futures for Australia’s Safeguard Mechanism (Carbon Market Institute)

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

    RepuTex has been engaged by the Carbon Market Institute (CMI) to analyse the current operation […]

    Research Insights | June 30th, 2022
  • Carbon Markets

    UPDATE: Carbon Offset Market Report – Nature-based ACCUs dominate as divergence between broker and bilateral spot price grows

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

    The spot price for Australian Carbon Credit Units (ACCUs) fell 0.7% on the week, with […]

    Research Insights | June 13th, 2022
  • Carbon Markets

    UPDATE: Carbon Offset Market Report – Positive sentiment returns as ACCU buyers favour regeneration over land-based avoidance projects

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

    The change of government has proven to be supportive for the local ACCU market, with […]

    Research Insights | May 30th, 2022
  • Carbon Markets

    INSIGHTS: Election 2022 – Market impacts, and where to next for the ALP’s “Safeguard Mechanism 2.0”?

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

    The Federal Election has been run and won, with the Australian Labor Party (ALP) confident […]

    Research Insights | May 24th, 2022
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone