Supply of 4.8 million ACCUs was added to Australian National Registry of Emissions Units (ANREU) accounts during Q3 2021, while the total demand from ERF contract deliveries and voluntary cancellations totalled 3.7 million units (see Figure 1.1). The balance of ACCUs held in the ANREU increased for the second consecutive quarter to a record 10.9 million units, up 12% on the 9.7 million ACCUs held at the end of Q2 2021 (see Table 1.1).
Figure 1.1 ACCU supply and demand balance (millions), 2019 to 2021
Table 1.1: Balance of supply and demand September quarter 2021 close5
| Balance/supply of ACCUs from June quarter 2021 |
9,711,982 |
|---|
| ACCUs issued September quarter 2021 | 4,814,773 |
|---|
| ERF contract deliveries | - 3,444,651 |
|---|
| Safeguard cancellations6 | 0 |
|---|
| Voluntary cancellations | -220,358 |
|---|
| ACCU relinquishment7 | 0 |
|---|
| Net balance at the end of September quarter 2021 |
10,861,746 |
|---|
During 2021, total ACCU holdings have increased 70% with accounts in all categories increasing substantially. ACCUs held by project proponents8 increased 52% to 6.4 million, while holdings by ‘Business and Government enterprises’9 increased by 69% to 2.2 million. ‘Intermediary’10 accounts increased 156% from 0.9 million to 2.3 million at the end of Q3 (see Figure 1.2).
At the end of Q3, there were 15 accounts in the ‘intermediary’ category. In the past year, a total of 2.8 million units have flowed into these accounts from project proponents, business and government enterprises, while 1.4 million ACCUs have been transferred out of these accounts. Of the ACCUs transferred out, 0.4 million were voluntarily cancelled by 9 account holders.
Figure 1.2: Breakdown of ACCU holdings by market participation (millions), March quarter 2018 to September quarter 2021
Footnotes
5 Within a specified period, supply of ACCUs refers to ACCUs issued. Demand of ACCUs incorporates 3 sources including Commonwealth ERF contract deliveries, safeguard mechanism cancellations and state and territory government and private sector voluntary cancellation.
6 Safeguard mechanism cancellations does not include deemed cancellations. A ‘deemed cancellations occurs when ACCUs issued under an ERF project at a safeguard facility, in a particular year, are delivered to the Commonwealth under an ERF contract.
7 For more information see the Relinquishing ACCUs section of
Australian carbon credit units.
8 Project proponent - Account holder is connected to one or multiple ERF projects.
9 Business and Government enterprise - Account holders that do not have direct link to ERF projects. These include safeguard entities, voluntary participants, local government entities that are accumulating for voluntary or compliance purposes.
10 Intermediary - Account holder’s facilitate trading of units between the supply and demand sides of the market.