CORE Markets modelling finds that potential limits on Australian Carbon Credit Unit (ACCU) use could encourage more onsite abatement, only within a narrow range. Beyond that, tighter restrictions deliver little additional abatement and increase the risk of unmet liability.
Compliance pressure on Safeguard facilities is building. In the 2024–25 financial year, total emissions from these facilities exceeded their combined baselines for the first time. Surrenders of ACCUs and Safeguard Mechanism Credits (SMCs) rose almost 50% on the previous year.
The Australian Government’s Safeguard Mechanism Review is considering whether limits on ACCU use could encourage more onsite abatement.
CORE Markets modelling finds that potential tighter restrictions lift onsite abatement only within a narrow range. Beyond that, tightening adds compliance risk and almost no extra abatement.
In this article, we examine how potential restrictions on ACCU use could increase onsite abatement and when tighter limits may begin to raise compliance risk.
The full article is now live in the CORE Markets platform.
Log in or register a free CORE Markets account to get closer to power, environmental and carbon markets with insights and updates from our experts.
Log in or register a free CORE Markets account to get closer to power, environmental and carbon markets with insights and updates from our experts.
CORE Markets modelling finds that potential limits on Australian Carbon Credit Unit (ACCU) use could encourage more onsite abatement, only within a narrow range. Beyond that, tighter restrictions deliver little additional abatement and increase the risk of unmet liability.
CORE Markets modelling finds that potential limits on Australian Carbon Credit Unit (ACCU) use could encourage more onsite abatement, only within a narrow range. Beyond that, tighter restrictions deliver little additional abatement and increase the risk of unmet liability.
