Australia’s carbon credit prices climbed to their highest levels in nearly four months on Monday, following the Labor Party’s strong performance in the federal election and Prime Minister Anthony Albanese’s re-election.
Forestry workers planting trees on an Australian hillside, with wind turbines visible in the background. AI generated picture.
Generic Australian Carbon Credit Units (ACCUs), covering credits from land restoration projects, not including avoided deforestation, were assessed at $22.97 (AUD35.50) per tonne of CO₂ equivalent. This represents a 50-cent increase over Friday’s price and brings the market close to its AUD36 peak recorded in January.
The price movement reflects a cautious optimism among traders and brokers. While the election result was largely anticipated and ‘baked into prices’, Albanese’s majority win signals continued political support for carbon market reforms and environmental policy, which underpins medium to long-term confidence.
‘It is undeniably a bullish outcome for the ACCU market over the medium and long term’, said one trader. ‘Now we are just awaiting the Safeguard entities — that have been sitting on the sidelines before the elections — to now come to the market and underwrite some gains.’
A broker added that the outcome was ‘slightly better than neutral’ for the market, noting that a minority Labor government supported by the Greens would have likely led to an even more bullish surge in prices.
Supply remains tight, and demand is expected to rise further, said Guy Dickinson, executive director of carbon broker Clima. The Greens, now in a stronger position, are also expected to press for a tougher Safeguard Mechanism, which would add further pressure to corporate emitters to purchase credits.
Read more: High-quality carbon credits vs regular carbon credits: what sets them apart?
‘Australians have given the Albanese Government an emphatic mandate for continuity in clean energy and decarbonisation policies’, noted John Connor, CEO of the Carbon Market Institute (CMI).
Looking ahead, the market is watching for Australia’s 2035 Nationally Determined Contribution (NDC), due before September. The government is prioritising a reformed Safeguard Mechanism and a national carbon market strategy, alongside ongoing reforms to the ACCU system to boost supply integrity and method development.
The rise in carbon credit prices, though modest, underscores investor expectation that Australia’s carbon market will become more active and more regulated—a signal of maturing policy direction and potentially stronger demand in the years ahead.
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