The Federal Clean Energy Regulator has released the October 2019 Australian carbon credit unit (ACCU) market update.
The updates provide information on trends in the ACCU market in Australia to increase market transparency, and drive genuine low cost carbon abatement opportunities.
The October update provides a view of supply and demand for ACCUs, and explores the key factors that may influence the market in the near future.
Market Highlights include:
- Supply into the market is growing with 13.7 million ACCUs issued in 2018-19, up 12 per cent from the 12.2 million in 2017-18. Contributing to this increase, 64 Emissions Reduction Fund (ERF) projects entered the project crediting phase in 2018-19, up 28 percent from the 50 projects in 2017-18.
- At the ninth ERF auction 59,000 tonnes of carbon abatement was purchased through three carbon abatement contracts at an average price of $14.17 per ACCU, up from $13.87 at the previous auction.
- In the first quarter of 2019-20, 3.6 million ACCUs were issued.
- There is currently $237 million remaining in the ERF.
- Funds from the $2 billion Climate Solutions Fund (CSF) will be available for forward contracting in future months.
