The Clean Energy Regulator (CER) has found that Australia’s carbon offsets market has not suffered the price falls seen internationally, dispelling concerns that demand and prices would suffer due to the COVID-19 pandemic.
The Minister for Energy and Emissions Reduction, Angus Taylor said he had asked the Regulator to continue to monitor developments in the carbon market closely and take action to support the carbon market further if the need arises.
“As a result, the Regulator stands ready to purchase Australian Carbon Credit Units (ACCU) at the last auction price ($16.14 per tonne) if the market were to fall substantially,” Mr Taylor said.
“It is important the Government continues to provide support to Australian businesses to reduce emissions — supporting jobs, many in regional areas, and cash flow during challenging economic times.”
He said the measure was expected to help maintain ACCU prices and demand before the next Emissions Reduction Fund (ERF) auction takes place in September.
He said that while the Government had a key role in purchasing abatement through the ERF, many projects run by businesses and communities had contracts with third parties.
He said he would continue to work with participants and industry to explore innovative ways to reduce emissions, secure abatement and support jobs through the Climate Solutions Fund (CSF).
Mr Taylor said the Government would seek to maximise co-investment from the private sector and other levels of Government alongside the CSF through state energy deals and other measures.
“Incentivising voluntary emissions reduction on a broader scale will position Australia to overachieve on our 2030 Paris target in a decade’s time – all while maintaining a strong economy,” the Minister said.
