The Australian Carbon Market is still a little way down the track as the political agenda sorts itself out on the proposed Carbon Pollution Reduction Scheme (CPRS). While there were some initial trades in Australian Emission Units (AEU) in the lead up to the first tabling of the CPRS, the market stalled after the Senate vote failed to gain a majority. In the meantime, both the expanded RET and GGAS have filled the market void.
The chart above depicts the last 12 month price history of the spot Renewable Energy Certificate (REC) and the spot NSW Greenhouse Gas Abatement Certificate (NGAC). Trading in RECs, began in early 2001 under the Mandatory Renewable Energy Target and in January 2003, NGACs became one of the first carbon commodities to exist in the world under the NSW Greenhouse Gas Abatement Scheme.
The NGAC market will phase out when the new national carbon scheme begins.
