- The ACCU spot price has remained relatively steady with the last closing price of $30.3/tCO2e, a 9% increase since the August update. ACCUs sourced from Human-Induced Regeneration (HIR) projects have fallen in premium, with HIR credits trading at only $3 above the spot price, compared to $6.25 last month.
- The Clean Energy Regulator released their Quarterly Carbon Market Report for Q2. Most notably, a record-breaking 5.5 million ACCUs were traded in Q2, a 400% increase compared to the previous year. Voluntary cancellations have increased in record numbers, with more than 440 thousand ACCUs cancelled by 84 entities. More than half of these entities were new entrants to the market, with 49 of the 84 entities cancelling ACCUs for the first time during Q2.
- The Labor Government’s Climate Bill has passed the Senate, enshrining the new 43% emissions reduction target by 2030 into law. Off the back of the new targets, the Government is focusing on the reform of the Safeguard Mechanism, one of the key policy mechanisms to help emissions reduction goals. Climate and Energy Minister Bowen released a draft consultation paper on proposed changes to the Safeguard Mechanism, which proposes annual emissions reductions for Australia’s biggest polluters by up to 6% a year.
- New South Wales (NSW) is on track to become the first state to start treating carbon dioxide and other greenhouse gases as pollutants under environmental law. Under the draft policy, the EPA will establish enforceable emissions reduction limits for polluters that could be phased into EPA-regulated industries such as mining and agriculture.
September Carbon Report
