11 Dec 2024 | 04:05 UTC — Insight Blog
Australian carbon prices to be bullish on ambitious baselines, method delays
Energy transition highlights: Our editors and analysts bring together the biggest stories in the industry this week, from renewables to storage to carbon prices.
Australian carbon credit unit or ACCU prices are set for a bullish 2025 on stronger demand from entities facing compliance obligations as well as potential further delays for releasing new carbon crediting methodologies, market participants told S&P Global Commodity Insights.
The Australian government reformed its compliance emission trading mechanism, called Safeguard Mechanism, in July 2023, lowering the emissions baselines by 4.9% yearly until 2030 to ensure emissions from facilities gradually decline. The government’s reform has significantly increased the ACCU demand.
The addition of new carbon crediting methodologies will be important for the mid-to-long term supply of ACCUs, but it will naturally take time for ACCUs to be issued from Integrated Farm and Land Management as well as other methodologies, and to be delivered to the market, Tasman Environmental Markets CEO Adrian Enright told Commodity Insights.
Editor’s picks: Premium and free content
INTERVIEW: Article 6 market design improves, but liquidity will take time: South Pole
The latest Article 6 agreement has enhanced the market's transparency and provided flexibility for project developers and investors to participate, but it may still take years to see significant supply and demand growth, Karolien Casaer-Diez, global senior director for Article 6 at South Pole, told S&P Global Commodity Insights in a recent interview.
US utilities, independent power producers eye 'solvable' development challenges
Grid interconnection bottlenecks remain a major development hurdle for US renewable energy and battery storage projects, but independent power producers and utilities see a series of additional obstacles as they race to bring online more supplies to meet surging demand for electricity.
China registers first project under its relaunched domestic voluntary carbon market
The relaunched China Certified Emission Reduction market had the first project registered on Dec. 3. It is an offshore wind project with an annual CCER issuance volume of 497,191 mtCO2e, the official CCER website showed.
EU launches second renewable hydrogen production subsidy auction
The European Commission has opened a second renewable hydrogen production subsidy auction under the European Hydrogen Bank mechanism, with a budget of up to Eur1.2 billion ($1.26 billion) and a price ceiling of Eur4/kg. The price ceiling for the second auction was lowered from Eur4.50/kg in the first auction in 2023 after it cleared well below expectations at 37-48 euro cents/kg, supporting 1.5 GW of electrolysis across six projects. Hydrogen project bidders have until Feb. 20 to apply via the EU's Funding and Tenders Portal.
Learn more about S&P Global Commodity Insights Energy Transition Services
Subscribe to this newsletter on LinkedIn
to get weekly updates on the biggest stories
in energy transition