We’re seeking feedback to:
identify market needs and priorities for establishing new market infrastructure
test the feasibility of an Australian carbon credit unit exchange trading model.
Background
Carbon markets play an important role in supporting Australia to meet its legislated climate targets.
We support carbon markets through processes that record, track and monitor the trading of:
- Australian carbon credit units (ACCUs)
- Safeguard Mechanism credit units (SMCs)
- large-scale generation certificates (LGCs)
- small-scale technology certificates (STCs).
The new Unit and Certificate Registry will be able to connect with other platforms and exchanges. This will facilitate greater investor access and trading in carbon and environmental markets. The registry will replace the Australian National Registry of Emissions Units (ANREU).
The proposed exchange trading model is designed to:
- support market liquidity
- provide greater transparency and standardisation
- increase market access
- encourage the development of more sophisticated financial products and instruments.
The proposed exchange model would operate similarly to the cash equities market. ACCUs can be traded, cleared and settled using existing market infrastructure with an end-to-end solution. This would include connectivity with the new registry.
Who can participate
This consultation is open to:
- participants in our schemes, including entities creating, holding and trading carbon units and certificates
- safeguard facilities
- carbon market participants
- consultants
- brokers and intermediaries.
Timeline
- Consultation opened: 11 October 2024
- Consultation closes: 22 November 2024
Consultation documents
- Discussion paper: enabling deep, liquid, transparent and accessible carbon markets in Australia
- Coversheet: carbon market infrastructure for holding and trading certificates and units [DOCX 71.8 KB]
Have your say
The consultation closes Friday 22 November 2024.
Read the discussion paper for more information about the consultation.
You can make a submission online or email us at market-engagement@cer.gov.au. Use the consultation coversheet if you’re submitting via email.
Targeted virtual consultations
To help you make a submission or to discuss the paper, we'll be running targeted virtual consultation sessions in October and November.
To register your interest in attending a session, email market-engagement@cer.gov.au.
Next steps
We will review and consider all submissions. We’ll let you know the outcomes in early 2025.