Safeguard Mechanism Review Scenario Analysis

Potential changes to the use of Australian Carbon Credit Units (ACCUs) under the Safeguard Mechanism could have significant implications for compliance, on-site abatement and the wider carbon market.

CORE Markets has modelled two potential approaches raised in the 2026–27 Safeguard Mechanism Review consultation paper:

1. Placing a quantitative limit on ACCU use

2. Discounting the compliance value of ACCUs.

The analysis tests how different settings could affect Safeguard Mechanism compliance, ACCU and SMC supply and demand, market prices and the level of additional on-site abatement delivered.

To learn more about this analysis, or discuss modelling tailored to your own requirements, please get in touch via the form on this page.

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