Carbon exchange launch poised for year-end, early 2025

The Australian Securities Exchange (ASX) and Clean Energy Regulator (CER) will from early this year be conducting exploratory work with the industry and regulators on the development of an Australian Carbon Exchange. 

Both the ASX and CER intend to identify a solution to meet the needs of the Australian market, as well as conduct a Feasibility Study on delivering that solution. This includes assessing whether the identified solution can be supported under the existing regulatory framework for Australian carbon credit units (ACCUs) or if changes are required. 

Between Q1 and Q3 2024, CER will be tackling system delivery and integration. Upon completing this, CER anticipates the Unit and Certificate Register will be operating by H2 2024. 

CER reports the Australian Carbon Exchange is expected to be launched between late 2024 and early 2025, pending consultation with the market. 

In December 2023, the ASX first reported it will be working with the CER to develop the carbon exchange, which is intended to operate in a similar way to a securities exchange. It will be designed as a platform where ACCUs can be traded, cleared, and settled.

The CER at the time also entered into a contract with Trovio Group to develop and deliver a modern Unit & Certificate Register. The register is poised to enable a market that offers buyers and sellers greater choice, ef​​ficiency, and transparency, with the potential to enable other trusted digital carbon trading platforms to connect i​n the future.

World-class foundation

According to the CER, the Australian Carbon Exchange will facilitate the trade of ACCUs and integrate with this new and improved register, allowing for choice within the market and increasing innovation. 

CER Executive General Manager Mark Williamson says the new register will form the foundation of a ‘world-class’ carbon market.

“Trovio Group brings a wealth of experience delivering advanced technology architecture. Its proposal for the Unit & Certificate Register features a customisable digital registry that will integrate seamlessly with other systems through its secure communication interfaces.

In addition to the exchange trading option and direct transfers between trading partners, we will be looking to allow other trusted digital trading platforms to connect to the new carbon register subject to security requirements and the necessary regulatory licences.”

ASX Managing Director and Chief Executive Officer (CEO) Helen Lofthouse says the ASX is supportive of efforts to decarbonise the economy and are ‘excited’ to be conducting this work with CER. 

“Demand for carbon credits continues to increase with government policy focused on emissions levels and corporates seeking to develop compliance measures and meet both regulated and voluntary emissions targets over the coming years.”

The ASX was unavailable for further comment before going to press.

Write to Aaliyah Rogan at Mining.com.au      

Images: Clean Energy Regulator
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.