Having a hard cap on the amount of ACCUs that a company can use under the Safeguard Mechanism would be impractical and would prevent businesses from making the decarbonisation changes they will have to make, Carbon Market Institute chair and energy market expert, Dr Kerry Schott told the National Press Club today.
New data from the Clean Energy Regulator shows a record 17.7 million ACCUs were issued in 2022 with unit numbers forecast to rise again in 2023, while cancellation of ACCUs by private companies increased by 56% compared to the previous year.
On-site emission reduction rather than offsets will account for 74% of all abatement achieved under the Safeguard Mechanism by 2030, according to new modelling from carbon consultancy Reputex.