Carbon markets: trading volumes slow with review uncertainty


Eric Barker, Beef Centra//Ag Carbon Central (Australia)



CARBON trading has slowed in recent weeks as the Federal Government’s review of the carbon farming framework heads into a public submission phase.


The price of Australian Carbon Credit Units (ACCUs) recovered increased slightly this week to $29.50 after a drop last month, which was put down to renewed criticism of the industry.


Market forecasting service Reputex Energy said while prices have seen little movement in recent weeks, volumes traded have been low. The update said it was partially due to traders watching public auctions in New Zealand and uncertainty due to the government’s Chubb review.


The Chubb review is the independent review the Federal Government called after criticism was made about the integrity of certain methods under the Emissions Reduction Fund. Reputex said the future impact of the review on the carbon market was still unknown.


“It remains to be seen how or if forward supply will be constrained, subject to how quickly the market is required to transition to a “high integrity” system,” the report said...


... European markets have crashed in recent weeks, with the European Allowance price on Barchart €30 down on the record breaking €100 it reached last month – EUAs are currently sitting on $60.75...