Carbon Market

Kilter Rural has an expert team of markets analysts. Request our monthly market reports.

May 2022

  • The ACCU spot price in the voluntary market has continued to remain stable at roughly $30/t. However, the aftermath of last month’s critique of the integrity of the majority of ERF credits has also affected the voluntary market. With recent analysis indicating the price premium for HIR credits and the associated co-benefits has fallen by almost half since March from 10% to 6%.
  • In election news, Scott Morrison has critiqued Labor’s emissions policy as a “sneaky carbon tax”. Labor, if elected, has proposed to tighten the baseline emissions caps under the Safeguard Mechanism (an existing Coalition Policy) by an average of 5 million tonnes per year. While the Coalition is pursuing a “technology over taxes” policy, investing $20 billion in ‘low emissions’ technologies.
  • Climate action has become a more pressing issue for voters this election, with surveys showing 79% of voters support more action on climate change, and more survey respondents mentioned climate change as their number one issue than any other topic. A number of currently-held Coalition seats prioritise climate change much higher than the majority of the nation, some of which all are being challenged by ‘Teal Independents’, community-backed candidates running on platforms of climate action in traditionally conservative seats.
Last updated: 18th May 2022

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April 2022

Last updated: 19th April 2022

March 2022

  •  In the biggest drop in ACCU prices since the inception of the ERF, the spot market fell by almost 40% over the first 2 weeks of March.

  • The most significant factor in the market downturn was Angus Taylor’s shock announcement to allow ERF projects under fixed-delivery contracts an easy pathway to instead sell their ACCUs on the spot market. The speed at which the market reacted to the announcement, highlights the unexpected nature of the changes.

  • Data from the biggest climate poll in Australia has been released, which provides a national and electorate-level breakdown of public opinion on various climate issues. 
Last updated: 17th March 2022

February 2022

  • The ACCU spot price remains relatively steady at $54.50/t, an increase of less than 1 percent compared to last month and the most steady the market has been since March-April 2021.
  • The volume of units traded reached a record monthly high in January of 550,000 units
  • The EU ETS has seen a recent increase in the price of carbon credits, soaring past last November’s record of 90 Euro to 96 Euro per tonne (AU$150).
Last updated: 20th February 2022

January 2022

  • The ACCU spot price yet again has jumped considerably since the last carbon update. The spot price now stands at a record-breaking $54/t, over three times higher than last January. In comparison with the EU EST, which rose by 146% over 2021, the ACCU spot market rose by 209% over the same period.
  • Recent economic analysis has predicted that the global average carbon price may rise to between US$50 to US$120 per tonne by 2050.
  • In Europe, climate ambitions are clashing with rising energy prices due to limited gas imports.
Last updated: 20th January 2022

December 2021

  • The ACCU spot price has risen above $40/t. While supply of ACCUs for the September quarter was recently reported to be 25% higher than last year, along with a 67% increase in the number of projects registered.
  • The 8th Australasian Emissions Reduction Summit was hosted by the Carbon Market Institute in December. The general consensus from the Summit appears to be positive and forward-thinking, with speakers surprised at the recent rapid growth in ACCU spot prices, and predictions the spot price will grow to about $60/t over the next 3 years.
  • New research has shown that with current technology, carbon offsets have a limited global budget. To stay within a 1.5°C temperature rise, a conservative 40Gt of annual emissions removal is estimated by the IPCC. Using nature-based solutions, the land required to sequester 40Gt of greenhouse gases annually is much greater than the global area of cropland.
Last updated: 21st December 2021

November 2021

  • The ACCU spot price has risen to $36.50/t, a 120% increase on last year. However, the price of ACCU’s in the 13th ERF auction which was held last month, reached an average of only $16.94/t, an 8% increase compared to last September’s auction.
  • COP26 in Glasgow has ended after two weeks of negotiations. Highlights include pledges by 2030 to end deforestation and cut methane emissions by 30%, and progress has been made on creating a framework for countries to trade carbon credits.
  • The Australian Government has announced a plan to reach net-zero by 2050. The plan focuses on investment in new technologies, with comparably little investment in developing local carbon markets.
Last updated: 23rd November 2021

October 2021

  • The Australian ACCU spot price has yet again reached record levels, growing to $29.5/t. This is an unprecedented 79% increase in the past year. The continued growth has been driven by increased demand, leading to a supply squeeze
  • COP26 is due to be held a Glasgow at the end of this month, and will see a significant increase in international pressure to commit to strong emissions reductions targets.
  • The Clean Energy Regulator has committed to developing ‘method-stacking’ land-based sequestration activities in 2022. The Integrated Farm Method will allow multiple projects, such as soil sequestration, grazing management, and revegetation, to all be conducted on the same piece of land under one umbrella project. For Kilter, it would mean we could include soil sequestration in the same project/land as native vegetation plantings.
Last updated: 20th October 2021

October 2021

  • The Australian ACCU spot price has yet again reached record levels, growing to $29.5/t. This is an unprecedented 79% increase in the past year. The continued growth has been driven by increased demand, leading to a supply squeeze
  • COP26 is due to be held a Glasgow at the end of this month, and will see a significant increase in international pressure to commit to strong emissions reductions targets.
  • The Clean Energy Regulator has committed to developing ‘method-stacking’ land-based sequestration activities in 2022. The Integrated Farm Method will allow multiple projects, such as soil sequestration, grazing management, and revegetation, to all be conducted on the same piece of land under one umbrella project. For Kilter, it would mean we could include soil sequestration in the same project/land as native vegetation plantings.
Last updated: 20th October 2021

September 2021

  • The ACCU spot price has increased slightly in the past month, sitting at $24/t in September, which is now a reported 40% increase in ACCU spot prices in the past year. 
  • A record 5.7 million ACCUs were reported by CER in the June quarter, while 47 new ERF projects were registered. An update was also provided on the Carbon Exchange (expected to launch early-2023), with CER shortlisting 13 companies to participate in the request for proposal. 
Last updated: 20th September 2021

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