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Australian Carbon Credit prices plummet in wake of European crisis.

Australian Carbon Credit Units (ACCU) prices have fallen for the first time in more than a year due to the uncertainty of the global energy markets. ​

On Wednesday 2nd March, the market closed for ACCUs at $47 per tonne. This is an almost 20% drop after ACCU's reached their all time high this past January.​

Graph showing an intense drop in European carbon prices. Source: BarChart

Leading carbon market experts suggest there were signs the Australian carbon credit market was starting to respond to the recent surge in offset prices in 2021, where they more than tripled.

We have also seen growing demand for locally generated carbon credits, as many corporations are searching for affordable means of offsetting their emissions as they work towards their Net Zero.​

In 2021, the general sentiment was that the market was falling short. We are now seeing increasing issuance to projects that are coming off ERF contracts and optional delivery contracts. ​

The significant uncertainty of today's global market has been triggered by the Russian invasion of Ukraine. This has seen energy prices spike around the world. It also means European emissions units have lost 30% of their value over the past two weeks. Market analysts speculate this is due to traders being forced to sell off their holdings in carbon units to cover the increased costs in energy.

What does this mean for the Australian market?

Although the fall in Australian carbon credit units has not been as pronounced as the fall in the European market, the facts are there. We are evidently seeing the lowest prices for ACCU's that we have seen in over a year.​

Now is the time to be purchasing Carbon Credits to take advantage of these low prices. The energy market is volatile and can change overnight, as we've seen with NEM wholesale prices due to the Eraring Closure last month. ​

Please get in touch with your Account Manager today to make the most of this sharp fall in Carbon Credits and reach your Net Zero goal at least cost.

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