The Sydney Opera House in Sydney, Australia, on Tuesday, June 7, 2022. Australia's central bank raised interest rates by more than economists expected and said it's committed to "doing what is necessary" to rein in broadening inflationary pressures. Photographer: Daniela Rivera Antara/BloombergPhoto by Daniela Rivera Antara /Bloomberg

Australia Gets Ready to Launch an Integrated Registry for Carbon Credits by 2024

Australia will develop a new registry to integrate its fragmented carbon market, improving its efficiency and transparency.

by · Financial Post

(Bloomberg) — Australia will develop a new registry to integrate its fragmented carbon market, improving its efficiency and transparency. 

The Clean Energy Regulator has 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), according to a statement from the government. Currently, each of these units are registered and traded separately.

The new platform, which is expected to come online in the second half of 2024, is designed to enable direct transfer between trading partners, allowing better price discovery and transparency, according to the statement. 

Australia’s carbon market has been skewed by too much supply of ACCUs, which exceeded demand by nearly three times in 2022. To address this imbalance, the government set out to simplify trading and improve efficiency. By unifying the country’s fragmented carbon market, the new integrated registry hopes to broaden access and trading options for its participants.

“Developments like this, especially in a historically opaque market, are pivotal in enhancing market participation and price discovery,” said Camille Wee, a BloombergNEF analyst. 

Separately, the Clean Energy Regulator will work with Australian Securities Exchange to develop a carbon exchange model. The exchange will initially support the trade of ACCUs but is likely to extend to support other certificates such as LGCs​ in the future, the Clean Energy Regular said on Tuesday.

—With assistance from Camille Wee.