In this issue
This update is published monthly and provides analysis of key developments in select compliance and voluntary carbon, and emerging environmental markets.
Highlights for February
Select regional carbon markets:
- ACCU prices softened through February amid muted market conditions, with total volumes exchanged holding broadly steady month‑on‑month, while SMC trading reached its largest monthly sum ahead of the forthcoming surrender.
- New Zealand’s carbon market rebounded strongly in February, with NZU prices rising sharply amid renewed buying interest and improved trading volumes followingmonths of weak sentiment.
- Singaporesignalled it may reassess the trajectory of its post-2027 carbon tax, withofficials indicating the rate could shift toward the lower end of theS$50–80/tCO₂-e range by 2030 if global climate ambition continues to weaken.
- In Japan, public consultation closed on the proposed GX-ETS ahead of its planned April launch, with industry feedback highlighting uncertainty around banking rules and the role of international credits.
Voluntary carbon market:
- The VCM continued to show a growing divide between legacy avoidance credits and projects alignedwith emerging integrity standards.
Article 6 market:
- The Article 6.4 Methodological Expert Panel released a draft methodological tool aimed at standardising how emission reductions are calculated forbiomass-related projects.
Australian biodiversity market:
- Australia launched the first tranche of the EPBC reform package, signalling the beginning of the broader EPBC Act reforms implementation timeline.
Sustainable Aviation Fuel credits:
- Sustainable Aviation Fuel credit retirements declined month-on-month in February, though activity remained significantly higher than the same period last year.
This market update is produced using select data, commentary and insights as available in full to our Carbon Intelligence Package subscribers. Learn more here.
