This report is published monthly and provides a high-level overview of the key developments in select compliance and voluntary carbon, biodiversity and Sustainable Aviation Fuel markets.
This report is published monthly and provides a high-level overview of the key developments in select compliance and voluntary carbon, biodiversity and Sustainable Aviation Fuel markets.
*Please note: This report is produced using select data, commentary and insights as available in full to our Carbon Intelligence Package subscribers.
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ACCU spot prices edged higher in July, closing at monthly highs following a late rally driven by increased compliance buying and strengthening policy signals. Generic spot ACCUs ended the month at A$35.60, up A$0.10, while No Avoided Deforestation (No AD) units closed at A$35.75. Human-Induced Regeneration (HIR) spot prices also lifted to match No AD, supported by a shift in buyer preference.
Market action was mixed early in the month. Generics peaked at A$35.55 on 3 July before softening demand weighed on prices. Intraday volatility on 11 July saw prices fall A$0.75 before closing unchanged. Thin liquidity persisted until the 25th, before renewed buying lifted offers to close the month at highs across all major spot products.
Traded volumes surged to 4.2 million ACCUs in July - an 87% increase from June and the second-highest monthly total since November 2024. No AD certificates again led activity, with HIR making up just 8% of the total. Generic volumes were supported by a strong month in the derivatives market, where optionality continued to grow. Around 1.8 million ACCUs were agreed under options contracts, while forward trades totalled 260,000 units as market preference leaned toward more flexible hedging instruments.
SMC trading picked up pace, with 100,000 units exchanged in July - a month-on-month increase for the emerging credit type. Method-specific premium markets remained largely inactive.
Policy continued to shape sentiment, as the government sharpened its focus on productivity. The Productivity Commission’s recommendation to expand the Safeguard Mechanism to smaller facilities attracted close market attention. Further support came from calls to allow surplus LGCs to offset future carbon liabilities, and broader positioning of climate and energy policy within national productivity goals.
Issuance rose to 2.35 million ACCUs in the month to 30 June, up from 2.17 million in May. HIR methods accounted for 1.08 million units, followed by 393,000 from Savanna Fire Management (SFM). Landfill gas and alternative waste methods also contributed significant volumes, with new inventory spread across multiple projects and methods.
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For a comprehensive update on the ACCU market, read our monthly ACCU Market Monthly Report
Learn more about our ACCU Market Forecast Report, a method-specific ACCU market supply, demand and price forecast
Prices in the NZU market softened over July, as Environmental Protection Agency (EPA) data revealed that overall holdings of units had contracted to their lowest levels since June 2020. After peaking on June 25th at NZ$59.70, NZUs traded lower in the opening days of July, dipping below the NZ$57.00-level on Friday the 4th.
The announcement that overall holdings had reduced by 24 million units to 133 million from March to June, following the May 31 surrender deadline, coincided with a jump of NZ$1.85 to the 7th, reaching the monthly high of NZ$58.60.
Thereafter, the market fluctuated between NZ$57.45 and the monthly high until the 22nd, before the spot dropped to the monthly low of NZ$56.05 on the 25th. Despite recovering some NZ$0.40 to close the month at NZ$56.45, the NZ$1.55 drop month-on-month is symptomatic of the post-compliance deadline lull, and illustrates the softened buyer flow in the wake of the May 31 cutoff date.
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The EU Parliament is positioning to set a 90% 2040 emissions reduction target which could allow up to 3% of that target to be met through international credits. To be eligible, these credits would need to be issued under Article 6 of the Paris Agreement and accompanied by corresponding adjustments.
If this approach progresses, the EU is expected to introduce stricter integrity requirements for these units – going above the UNFCCC standards already applied to Article 6.4 credits.
There were several announcements in June related to insurance requirements for carbon credits eligible under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Verra released criteria for insurance products designed to cover CORSIA-eligible carbon credits in cases where emission reductions could be double counted by both the host country and the aircraft operator. To prevent this, CORSIA requires credits to be backed by a Letter of Authorisation (LoA) confirming that the host country will not use the reductions toward its own targets, unless the credits have already been cancelled by the host country. However, LoAs can be revised or revoked, reintroducing the risk that the CORSIA rules aim to prevent.
To mitigate this, Verra’s criteria outline insurance mechanisms that could provide financial or credit-based compensation if an LoA is later reversed or deemed invalid.
In parallel, Gold Standard released its criteria for approved insurance policies and launched a formal process to assess and approve private insurance options for project developers aiming to supply CORSIA Phase I. Currently, the World Bank's MIGA is the only provider approved by Gold Standard, while Verra has yet to publish a list of approved insurance products – a gap that market participants say is hindering investment in CORSIA credit supply. Other insurance providers such as Kita and Oka are expected to be considered by both standards.
For in-depth data, analysis and commentary on international carbon markets, including macro trends, CORSIA and Article 6 markets, explore our Carbon Intelligence Package.
With Thailand and Malaysia both aiming to finalise Article 6.2 implementation agreements with Singapore by the end of the year, Singapore is poised to reinforce its position as ASEAN’s carbon trading hub. Thailand has completed its draft agreement and is now awaiting cabinet approval, while Malaysia is actively reviewing its draft agreement with a target to conclude negotiations by COP30. The finalisation of these agreements is expected to result in increased supply of International Carbon Credits (ICCs) in the coming years, in line with the elevated Singapore carbon tax.
For in-depth data, analysis and commentary on international carbon markets, including macro trends, CORSIA and Article 6 markets, explore our Carbon Intelligence Package.
In July, the voluntary carbon market showed a mixed but cautiously optimistic tone, with strong retirement activity and key regulatory developments tempered by subdued prices and thin trade volumes during the seasonal slowdown. Despite this, market sentiment remained resilient, supported by signs of strengthening integrity and oversight.
Retirements rose 40% year-on-year across major registries, led by nature-based solutions such as REDD+ and avoided deforestation credits. Verra remained dominant in issuance and retirements, though its market share declined as buyers increasingly seek higher-validation standards. While total issuance exceeded 4 million credits in July, it remained below historic highs, reflecting cautious supply growth amid rising demand for credits meeting higher integrity benchmarks.
Prices remained soft. AlliedOffsets’ biochar index closed at USD118.73, down from a June peak of USD169.54. Surveys suggest that providers need prices around USD180 - 187 per tonne to maintain supply in coming years.
However, CCP-labelled credits, particularly from CAR and ACR in the US, held firm, indicating growing interest units that meet more rigorous quality criteria. Regulatory momentum picked up. The ICVCM approved ACR’s afforestation/reforestation methodology, adding 3.7 million credits to the CCP pool and reinforcing a shift toward more stringent integrity standards. Türkiye’s new climate law mandating a national emissions trading system - with a role for voluntary offsets - could drive future demand, especially under Article 6 mechanisms.
While issuance focuses on newer vintages, the market still contends with a 900 million+ credit surplus from legacy stocks. Nevertheless, increased corporate engagement and regulatory clarity are fostering cautious optimism for a more balanced and integrity-driven market ahead.
For in-depth data, analysis and commentary on the voluntary carbon market, explore our Carbon Intelligence Package.
Australia’s biodiversity market remains in its early stages, with momentum driven by policy development and growing interest in financing nature restoration. Progress will depend on legislative reform, institutional readiness, and investor confidence to make biodiversity a viable complement to carbon markets. Recent commentary - including Dr Ken Henry’s call for stronger national standards and integration of natural capital markets - reflects an active policy debate on how best to align biodiversity outcomes with climate goals.
To advance the Nature Repair Market (NRM), the DCCEEW is developing two new methods: ‘Enhancing native vegetation’ and ‘Protect and conserve’. The first would support projects that improve biodiversity in areas with existing native vegetation, building on the earlier 'Replanting native forest and woodland ecosystems’ method. The second would support long-term protection and management of biodiversity on private and public land, contributing to Australia’s goal of protecting 30% of land by 2030. Both methods are currently in design, with input from experts and ongoing consultations.
UK consults on relaxing Biodiversity Net Gain (BNG) rules
The Department for Environment, Food and Rural Affairs (DEFRA) consultation (closing 24 July) proposes exemptions for small developments (≤9 homes) and reduced obligations for medium-sized sites (10 - 49 homes) to meet the Biodiversity Net Gain rules.
- Under current BNG rules, developers must deliver a minimum 10% net gain in biodiversity units, maintain improvements for 30 years, and follow a hierarchy: on-site habitat creation, off-site units, or statutory credits.
- The proposed reforms would allow planning officers to approve small projects without full biodiversity assessments and exempt them from the 10% gain rule.
DEFRA has previously stated that meeting the 30 by 30 target in England requires an additional 22.9% of land to be secured and effectively managed for nature. However, the proposed exemptions would exclude approximately 200,000 hectares from BNG obligations, reducing the potential contribution toward the target by around 6.7% of the additional land protection needed.
New Zealand launches voluntary nature-credit pilots
On 12 July, Associate Environment Minister Andrew Hoggard announced nine pilot projects to trial a durable, measurable, and transparent nature-credit market. As part of this initiative, the government has suspended the requirement to map Significant Natural Areas (SNAs) for three years, meaning no new areas will be added to the protected list until at least October 2027.
Elements of the Indigenous Biodiversity policy have also been paused to encourage voluntary participation. The pilot projects - from pest control in Northland to wetland restoration in Southland - aim to attract both domestic and international investment and inform the design for a potential national biodiversity credit scheme.
Canada funds Indigenous-led conservation initiative
On 21 July, Canada announced the “NWT: Our Land for the Future” initiative, one of the world’s largest Indigenous-led conservation projects. Backed by $375 million, including a $300 million federal grant, the initiative aims to protect up to 380,000 km² of boreal and tundra ecosystems - nearly 30% of the Northwest Territories. It will support Indigenous Guardians, establish Protected Areas, and promote conservation-based economic development. While not a formal credit scheme, the initiative could in time generate credits meeting higher integrity standards or serve as a baseline for voluntary markets, simultaneously advancing Indigenous leadership, biodiversity protection, and Canada’s 30 by 30 target.
For monthly deep dives on Australian and global biodiversity markets , including the interplays with carbon markets, explore our Carbon Intelligence Package.
Internationally, significant developments have emerged in the SAF space, but a recent report by Deloitte highlights a critical challenge: the growing disparity in SAF policy ambition between regions. This is expected for early leaders who move to scale sustainable alternatives ahead of others. The report warns that ReFuelEU mandates could cause carbon leakage, with passengers shifting to non-EU hubs to avoid higher costs. It recommends a SAF Border Adjustment Mechanism and stronger CORSIA framework to support fair competition and climate goals.
Significant SAF developments in the EU, including proposals to expand the Emissions Trading System to support SAF through a Contracts for Difference mechanism, and Denmark’s launch of the first EU-backed national subsidy scheme requiring at least 40% SAF on subsidised routes. Meanwhile, platforms such as Avelia’s book-and-claim system have scaled SAF deployment across 57 corporations and 17 airports across Europe, Asia, and North America, abating over 300,000 tCO₂e.
Closer to home, SAF developments in Australia remain early-stage, with UNSW Sydney leading a A$4.2 million research initiative to produce SAF from captured CO₂ and water using renewable electricity. This aims to reduce Australia’s dependence on imported fuels and support the Defence Net Zero Strategy.
For monthly deep dives on Australian and global SAF uptake, including how it interplays with carbon markets, explore our CORE Markets Carbon Intelligence Package
The events outlined in this month’s update highlight the evolving nature of global carbon and environmental markets and the complexity of the net zero transition.
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Global Environmental Markets Report - July 2025
