UPDATE: Uptick in volumes expected at sixth Emissions Reduction Fund auction

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

RepuTex today published its Outlook for the sixth ERF auction, to be held on December 6-7.

In line with auction five, we believe negative sentiment will again undermine the sixth ERF auction, with low participation likely to result in low volumes of abatement against initial auction events. We anticipate a small uptick in total auction volumes, albeit from a low base set in auction five, however negative sentiment is expected to again weigh down the market. Inversely, this is expected to flow through to higher contract prices, with modelling indicating a broad spread of contract prices is likely. Simulations suggest a high percentage of abatement may be contracted by the Regulator, extending the top of the auction bid stack, leading to a number of bidders contracting at prices well above the average price disclosed by the Regulator.

This suggests positive outcomes for participants, with conservative strategies at some risk of leaving notable upside on the table as the shape of the auction bid stack changes around the 50 per cent threshold.

To access our full ERF auction outlook and simulations, please CLICK HERE >>

To access our ACCU supply pipeline, click here, or to view our Project Pipeline, please click here.

Kind Regards,
The RepuTex Team
Australian Emissions Markets

LATEST UPDATES

  • ALERT: Access our new RepuTex CONNECT customer platform

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

    Dear Subscriber, RepuTex recently released an update to its CONNECT platform, providing customers with daily […]

    Research Insights | April 16th, 2019
  • UPDATE: Running to stand still – Industry baselines under the Safeguard Mechanism

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

    A critical component of both the ALP and Coalition climate policy frameworks is the ‘Safeguard […]

  • INSIGHTS: Inside the ALP’s Climate Policy – Implications for the Safeguard 2.0 market

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

    The ALP today released its “Climate Change Action Plan” policy, designed to establish a framework […]

  • Forecast ACCU prices under the Climate Solutions Fund – High road or the low road?

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

    In late February the Australian Government announced an additional $2 billion in funding for the […]

    Blog archive, Research Insights | March 18th, 2019
  • WEBINAR: An Australian carbon price under Safeguard 2.0 – What, when, how much?

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

    Dear Subscriber, Thanks for your interest in today’s webinar, discussing the current Australian carbon price, and […]

    Blog archive, Research Insights, Webinars | January 30th, 2019
  • Download this free report

    To start your free download, simply fill in the below form. You will also receive our future updates, event invitations, and research insights by email.
    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone