The passing of the FY24 compliance deadline prompted a modest resurgence in demand last week, with prices rebounding as a trickle of buying returned to the market. Despite this, uncertainty around the upcoming federal election, and the impact of potential changes to the Safeguard Mechanism, remains the elephant in the room.
In this Carbon Weekly report, we break down activity in the Australian exchange-traded and OTC carbon markets (spot and derivatives) over the past week, including key trends and drivers, our latest pricing and benchmarks, and our daily forward curves.
Market firms on renewed compliance demand, but all eyes on May 3 federal election
Total traded volumes across the Australian exchange-traded and over the counter (OTC) carbon markets increased last week to 541k (+186k WoW) – yet were still 40% below the 6-month rolling average of 896k.
Brokered market flows were led by Generic No-Avoided Deforestation ACCUs (55%), followed by Generic ACCUs (34%) and HIR ACCUs (9%), alongside small volumes across both Environmental Plantings and Plantation Forestry ACCUs.
Price action saw consistent gains over the week – with Generic ACCU traded levels reaching their highest point since late February, at $34.90/t.
Our volume-weighted Generic ACCU (Benchmark) assessmentsettled at $34.65/t
Unlock our award-winning research insights
Request access to learn more about our research services, or click here to register for free access to our articles and price information.