This update provides a summary of key developments across global compliance and voluntary carbon markets, and emerging environmental markets. It draws on select data, commentary and insights available in full in the Carbon Intelligence Package.
Highlights from the April edition
Select regional carbon markets
- Australian carbon market: ACCU prices consolidated in the $37.00s through May as the early months of the new compliance cycle pointed to a quieter, more evenly distributed purchasing pattern.
- New Zealand carbon market: NZU prices held in the low-$50.00s, supported by slowing forestry registrations and policy certainty following the Climate Change Commission's recommendation to maintain current auction settings.
- Singapore market: Singapore signed its 11th implementation agreement under Article 6, while a continued shortage of eligible credits led to another rollover of unused ICC quotas for carbon tax-liable facilities.
- Japan market: IETA published a detailed assessment of Japan's GX-ETS, with allowance allocation, the price corridor and offset eligibility identified as key design features that will shape market outcomes.
Voluntary carbon market
- The voluntary carbon market continued to diverge between high-integrity and lower perceived quality segments, with demand for CCP-eligible credits remaining resilient and carbon removals a growing focal point.
CORSIA market
- CP1 spot prices fell to 23-month lows as uncertainty around the EU's approaching CORSIA assessment and high jet fuel costs weighed on demand, while enforcement fragmentation raised questions about near-term procurement activity ahead of Phase 2.
Article 6 market
- Article 6 infrastructure advanced with the first PACM industrial methodology approved and pilot registries launched for both 6.2 and 6.4 mechanisms, though CDM transition progress remained slow.
Australian biodiversity market
- Australia's Nature Repair Market registered its second project, while the Enhancing Native Vegetation method neared release and consultation on national environmental standards prompted debate around outcome-based approaches.
Sustainable Aviation Fuel credits:
- SAF credit activity slowed in April, with retirements easing from March and the market still shaped by tight physical supply, high costs and evolving policy frameworks.SAF prices strengthened across European and US markets amid tightening supply, while retirements held steady. An emerging investment paradox around eSAF projects highlights the growing challenge of scaling supply to meet rising mandates.
