Australia’s Clean Energy Regulator is seeking a partner or partners to facilitate the emergence of an exchange-traded market for carbon offset units.
Australia’s Clean Energy Regulator is calling for expressions of interest to accelerate the emergence of an online exchange-traded market for emissions offsets, i.e. a domestic carbon exchange.
The carbon exchange will complement the current OTC market, making the trading of Australian carbon credit units (ACCUs) simpler, the regulator said. “This will support the rapidly increasing voluntary demand from the corporate sector.”
According to David Parker, Chair of the Clean Energy Regulator, said the new exchange will provide significant benefits for business, including increased price transparency, lower transaction costs, and reduced red tape.
It will also accelerate Australia’s emissions reduction and provide a boost to the country’s economic recovery, he added. “This initiative is to support the growing appetite across the private sector, government, and the community to voluntarily reduce emissions.”
The Clean Energy Regulator is seeking a partner or partners to facilitate the emergence of an exchange-traded market for carbon offset units.
This may include the provision of trading, clearing and settlement services, product and market design, market development, education and implementation services, and the provision of a Register of offset units.
The request for expression of interest, available here, is open until 11 June 2021.
A carbon exchange is one among several initiatives being undertaken by the Australian government to streamline voluntary private sector action to support emissions reductions.
The Clean Energy Regulator is also working to halve the time it currently takes to develop new ERF methods and reducing the time it takes to assess applications for registering new ERF projects and issuing ACCUs.
The ERF (Emissions Reduction Fund) is a voluntary scheme that provides incentives for organisations and individuals to adopt new practices and technologies that reduce their emissions, allowing them to earn ACCUs for emissions reductions.
The ERF enhancements will lead to increased and faster supply of ACCUs to meet rapidly increasing demand, the Clean Energy Regulator said.