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Climate Solutions Fund > Published reports

Quarterly Carbon Market Report – March Quarter 2021

24 June 2021

The Clean Energy Regulator has released the Quarterly Carbon Market Report – March Quarter 2021. The report provides market information on the 3 markets administered by the Clean Energy Regulator – the large-scale generation certificates, small-scale technology certificates and Australian carbon credit unit markets. 

Highlights

Australia’s carbon markets showed steady growth over the first quarter of 2021, setting up expectations for strong results in 2021. Highlights for the quarter include:

  • The Large-scale Renewable Energy Target of 33,000 gigawatt hours (GWh) was met, on a rolling 12 month basis, at the end of January 2021. Eligible generation from 1 February 2020 to 31 January 2021 reached an estimated 33,100 GWh
  • Emissions reductions from the schemes administered by the Clean Energy Regulator are conservatively expected to reach 57 million tonnes of carbon dioxide equivalent (CO2-e) in 2021, up 7% from 2020.
    • The Clean Energy Regulator is examining an alternative method looking at the emissions intensity of thermal generation displaced by the additional renewable energy generation. This new method indicates total emissions reductions from these schemes could be as high as 75 million tonnes of carbon dioxide equivalent in 2021.
  • Emissions Reduction Fund (ERF) Auction 12 contracted 6.8 million tonnes of forward carbon abatement through 10 contracts for a total commitment of $108 million.
    • Optional delivery contracts were favoured, accounting for 9 out of the 10 contracts and 6.6 million of the 6.8 million tonnes of forward carbon abatement.
  • Private demand for Australian Carbon Credit Units (ACCUs) and large-scale generation certificates (LGCs) accelerated with the highest Quarter 1 surrenders on record (532,000 units and certificates), up 39% compared with Quarter 1 2020.
  • The pipeline for large-scale projects backed by a power purchase agreement – but yet to reach financial close or begin construction – reached 3.7GW at the end of Quarter 1 2021. This is the highest level on record and indicates healthy investment in 2021 and beyond.
  • Rooftop solar under the Small-scale Renewable Energy Scheme (SRES) continued its strong growth in Quarter 1 2021 with 792 MW installed, up 28% on the Quarter 1 2020 result.
    • The Clean Energy Regulator now expects 3.5 to 4 GW of rooftop solar capacity to be added in 2021 across small and mid-scale rooftop solar PV.
  • The International Renewable Energy Agency's Renewable Capacity Statistics 2021 confirmed Australia as a world leader in renewables investment with the highest wind and solar capacity per capita installed of any developed nation (578 watts per person) over the past 3 years.

Downloads

Resources

Webinar – Quarterly Carbon Market Report – March Quarter 2021

This webinar discusses the highlights of the March Quarter 2021 report for ACCUs, LGCs and STCs.

Download the transcript: Transcript Quarterly Carbon Market Report – March Quarter 2021.

Video – Highlights from the Quarterly Carbon Market Report – March Quarter 2021

Infographic – 2021 market outcomes and tracking against estimates

Click on the image below to download a full-sized version.

Other Quarterly Carbon Market Reports

For a list of all other published reports, please see Quarterly Carbon Market Reports.


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