Australia Carbon Credit Market

Australia Carbon Credit Market Overview:

The Australia carbon credit market size reached 17.2 Million ACCUs in 2023. Looking forward, IMARC Group expects the market to reach 32.2 Million ACCUs by 2032, exhibiting a growth rate (CAGR) of 6.70% during 2024-2032. The industry is expanding significantly due to the favorable government policies and regulations, increased dedication to corporate social responsibility, expanded international trade prospects, and significant expansion in renewable energy projects.

Australia Carbon Credit Market Trends:

Government Policies and Regulations

Australia’s carbon credit market is primarily driven by government policies and regulatory frameworks, particularly the Emissions Reduction Fund (ERF) and the Safeguard Mechanism. The ERF provides financial incentives for businesses, landowners, and communities to adopt practices that reduce greenhouse gas (GHG) emissions. Through this, participants can generate Australian Carbon Credit Units (ACCUs), which are tradeable assets in the carbon market. The Safeguard Mechanism complements the ERF by setting baseline emissions for large industrial facilities. When companies exceed their emissions limit, they are required to purchase ACCUs to offset the excess, thus creating demand in the market. These policies foster a regulated environment that encourages innovation and investment in emissions-reducing technologies, such as carbon capture and storage (CCS) and renewable energy projects.

Corporate Sustainability Goals

Corporations across Australia are increasingly adopting ambitious sustainability goals, including pledges to achieve net-zero emissions. This is a significant factor driving the country’s carbon credit market. Businesses in sectors with historically high carbon footprints, such mining, energy, manufacturing, and agriculture, are looking for ways to lessen their environmental effect. Carbon credits offer an effective solution for these companies to offset emissions that cannot be eliminated through operational changes. The growing trend of corporate sustainability reporting and environmental, social, and governance (ESG) standards is pushing businesses to take meaningful steps toward reducing emissions. Public pressure from stakeholders, including investors, consumers, and regulatory bodies, is also motivating companies to adopt these practices.

International Trade Opportunities

Australia’s carbon credit market benefits significantly from international trade opportunities. The country’s carbon credits are recognized globally, which allows Australian businesses to export credits to foreign markets, particularly in regions with more stringent emissions targets. This has opened up new revenue streams for companies participating in carbon reduction projects, as they can sell their Australian Carbon Credit Units (ACCUs) internationally. Australia's competitive advantage is further strengthened by its close proximity to important Asian markets, where there is a growing demand for carbon credits as a result of stringent environmental rules and corporate sustainability pledges. Moreover, international climate agreements, such as the Paris Agreement, emphasize the importance of cross-border cooperation in emissions reduction, paving the way for international carbon trading.

Australia Carbon Credit Market News:

• In December 2023, Clean Energy Regulator signed a contract with Trovio Group to develop the Unit & Certificate Register that will house the registries of different credits, including the Australian Carbon Credit units (ACCUs) and large-scale generation certificates (LGCs).
• In August 2024, Australian airline Qantas announced its plan to fund carbon credit projects. The company will contribute to a new fund, which is designed to develop high-integrity, nature-based carbon projects in the country.

Australia Carbon Credit Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type, project type, and end-use.

Type Insights:

• Compliance
• Voluntary
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes compliance and voluntary.

Project Type Insights:

• Avoidance/Reduction Projects
• Removal/Sequestration Projects
  • Nature-based
  • Technology-based
     

A detailed breakup and analysis of the market based on the project type have also been provided in the report. This includes avoidance/reduction projects and removal/sequestration projects (nature-based and technology-based).

End-Use Insights:

• Power
• Energy
• Aviation
• Transportation
• Buildings
• Industrial
• Others
   

The report has provided a detailed breakup and analysis of the market based on the end-use. This includes power, energy, aviation, transportation, buildings, industrial, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Carbon Credit Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia carbon credit market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Australia carbon credit market?
• What is the breakup of the Australia carbon credit market on the basis of type?
• What is the breakup of the Australia carbon credit market on the basis of project type?
• What is the breakup of the Australia carbon credit market on the basis of end-use?
• What are the various stages in the value chain of the Australia carbon credit market? 
• What are the key driving factors and challenges in the Australia carbon credit?
• What is the structure of the Australia carbon credit market and who are the key players?
• What is the degree of competition in the Australia carbon credit market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia carbon credit market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia carbon credit market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia carbon credit industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.