The Australian Carbon Credit Unit (ACCU) market saw a significant increase in liquidity last week as traders capitalised on the weeks-long downtrend in prices for Human Induced Regeneration (HIR) and Generic ACCUs (low-cost avoidance) precipitated by the resumption of HIR issuances and sluggish demand. Recent price movements were therefore largely technical driven as buyers saw an opportunity to enter the market at comparatively good value, amid a medium- to long-term bullish signal. The uptick in prices came during a busy week in the local market, with the the release of the Implementation Plan for the Independent Review of Australian Carbon Credit Units on Friday providing an update on actions taken and planned following the Chubb Review, coming amid increasing speculation of reform for the ERF purchasing framework. Internationally, markets were also broadly stable to bullish, with the VCM trading steadily and prices jumping in the EU ETS.
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.
