As Australia’s federal election approaches, companies are locking in supply of offset agreements several years in advance to prepare for the possibility of a Labor government requiring emission reductions, pushing the forward price of carbon credits to a new high.
In October 2021, Australian Prime Minister Scott Morrison announced the government's plan to reach net zero emissions by 2050. However, under pressure from the Nationals, he ruled out tightening the safeguard mechanism, allowing Australian businesses to choose their own timelines and tools for reducing emissions.
Despite the absence of mandate, many Australian corporations have chosen high carbon reduction goals. As a result, demand for local Australian Carbon Credit Units (ACCUs) has surged over the past year.
