Australian Carbon Credit Unit Demand Expected to Remain Resilient, ANZ Research Says

MT Newswires Live10-23

Australian Carbon Credit Unit (ACCU) demand is anticipated to remain resilient, due to policy certainty, early procurement, and expectations of tighter baselines post-2030, ANZ said in a Thursday report.

ACCUs pushed higher in October amid strong compliance-driven demand. It expects the ACCU price to trade in the AU$35 to AU$40 per tonne range for the rest of the year, before pushing towards AU$60 per tonne by the end of 2026.

The Climate Change Authority (CCA) has launched a consultation for a statutory review of Australia's carbon market, which will look at the framework and legislation that underpins the market, with specific attention to areas like the ACCU scheme.

Near-term demand for New Zealand Carbon Units (NZU) remains soft as emitters hold banked units despite tightening signals. Participants are expected to remain on the sidelines for the December auction.

NZU prices fell to their lowest level in over five months due to weak demand amid oversupply. New Zealand is also relaxing climate reporting rules, on concerns over the cost to businesses and firms listed on the NZX, will now only have to provide disclosures if their market capitalization is NZ$1 billion or more.

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