Australian carbon prices to be bullish on ambitious baselines, method delays
Energy Transition by S&P Global Commodity Insights
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Australian carbon credit unit or ACCU prices are set for a bullish 2025 on stronger demand from entities facing compliance obligations as well as potential further delays for releasing new carbon crediting methodologies, market participants told S&P Global Commodity Insights.
The Australian government reformed its compliance emission trading mechanism, called Safeguard Mechanism, in July 2023, lowering the emissions baselines by 4.9% yearly until 2030 to ensure emissions from facilities gradually decline. The government’s reform has significantly increased the ACCU demand.
The addition of new carbon crediting methodologies will be important for the mid-to-long term supply of ACCUs, but it will naturally take time for ACCUs to be issued from Integrated Farm and Land Management as well as other methodologies, and to be delivered to the market, Tasman Environmental Markets CEO Adrian Enright told Commodity Insights.
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Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
3wVery informative.