The Clean Energy Regulator expects a rapid change in the carbon credit market towards long-term contracts, as big commercial buyers look to secure a reliable supply of credits.
Without changes to the ERF contract regime, court disputes with offset project proponents would have been inevitable, according to Clean Energy Regulator chief executive David Parker.
Australian Carbon Credit Units have sunk below $30 for the first time in months, with carbon broker Jarden confirming a trade of 5,000 ACCUs this morning at $29.
In the first trade since today's ERF exit regime announcement, a large tranche of Australian Carbon Credit Units have traded at a price $11.10 lower than the previous spot market trade.
A sudden change to the administration of ERF contracts, announced by the federal government today, will trigger a significant fall in the spot price for Australian Carbon Credit Units.