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

    ALERT: Australian CO2 spot price and forward activity continues to surge

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

    Australian carbon spot prices have continued to surge, reaching a new record high of $26/t […]

    Research Insights | September 17th, 2021
  • Carbon Markets

    RepuTex strengthens international offset coverage via partnership with Clear Blue Markets

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

    RepuTex is pleased to announce a strategic partnership with ClearBlue Markets to offer broader coverage […]

    Research Insights | September 15th, 2021
  • Carbon Markets

    ALERT: Australian Carbon Credit Unit price ends the week on a (new record) high

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

    After a quiet fortnight, the price of Australian Carbon Credit Units (ACCUs) ended the week […]

    Research Insights | September 10th, 2021
  • Carbon Markets

    MARKET UPDATE: Australian Carbon Offset Market Report: August 30 – September 10, 2021

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

    Dear Subscriber, Our latest Australian Carbon Offset Market Update has now been published. Recent positive […]

    Research Insights | September 10th, 2021
  • Carbon Markets

    How could Safeguard Mechanism Credits impact Australian Carbon Credit Unit prices?

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

    The Federal Government’s Safeguard Crediting Mechanism proposes to establish a pilot ‘below-baseline crediting mechanism’ for […]

    Research Insights | September 7th, 2021
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone