The most recent Quarterly Carbon Market Report by the Clean Energy Regulator, for September 2020, reports that the voluntary market grew strongly in Quarter 3, 2020, with a new record total of 3.6 million units and certificates (0.2 million ACCUs and 3.4 million LGCs) surrendered in the period.
This included the ACT government's bulk surrender of LGCs against its renewable energy target for 2019-20, a surge in LGCs for desalination and Greenpower, and increased levels of ACCU surrender under the Climate Active program.
For 2019, international units continued to dominate the voluntary market with 84% of all voluntary surrenders. Most of these were low-cost units originating from renewable energy projects in India.
Source: Clean Energy Regulator
Internationally, the voluntary carbon market saw a the cumulative market volume of more than 1.3 billion mt CO2 equivalent in 2019, exceeding $5.5 billion in value, according to environmental markets information group Ecosystem Marketplace.
Average carbon offset prices ranged from US$1.40/mt for renewable energy projects through to US$4.30/mt at the higher end for forestry and land use projects.
Notably, Ecosystem Marketplace highlighted that prices for offsets associated with Nature-Based Solutions (NBS) and Natural Climate Solutions (NCS), which include improved land management interventions on natural and agricultural lands, increased 30%, while prices for offsets from renewable energy decreased 16%.
Source: Ecosystem Marketplace
Overall, prices in voluntary markets have fallen since 2014, when they averaged between US$4.90/mt and US$5.90/mt.
In Australia, prices in the voluntary market vary between schemes, with the most visible prices being those that consumers pay to offset emissions from airline travel.
Explore the full Workshop Manual: The business case for carbon farming: improving your farm’s sustainability (January 2021)
Read the report
RESEARCH REPORTS
1. Introduction: background to the business case
This chapter lays out the basic background and groundwork of the manual
RESEARCH REPORTS
1.2 Being clear about the reasons for participating
Introduction: background to the business case
RESEARCH REPORTS
1.4 Working through the business case for carbon farming
Introduction: background to the business case
RESEARCH REPORTS
1.5 Factors determining project economics
Introduction: background to the business case
RESEARCH REPORTS
1.8 Important features of the business case
Introduction: background to the business case
RESEARCH REPORTS
2. How carbon is farmed under the ERF
This chapter considers in detail the activities that constitute carbon farming
RESEARCH REPORTS
2.5 Carbon farming under the Emissions Reduction Fund
How carbon is farmed under the ERF
RESEARCH REPORTS
3. The policy context and the price of ACCUs
This chapter takes a broad look at the policy context for carbon farming
