Xpansiv facilitates its first generic ACCU and ACCU HIR trades
SYDNEY — Xpansiv, the leading market infrastructure provider for the global energy transition, facilitated its first trades of generic Australian Carbon Credit Units (ACCU) and ACCU human-induced regeneration (HIR) credits priced at AU$32.10 and AU$34.90 respectively, via its market-leading energy and environmental commodity trading platform, CBL. The trades, which took place on Thursday and Friday last week, mark CBL’s pilot launch of generic ACCU contracts, which are now available to select market participants.
Over the two days, a total of 20,000 generic ACCU contracts were matched on the CBL trading platform.
Generic ACCU contracts represent a simple and accessible conduit to ACCU markets, providing a standard and transparent pricing model for participants to purchase offsets that meet Australia’s compliance carbon credit framework.
While the first project-specific ACCU trades took place in April 2023, after CBL received a market-making Australian financial services licence (AFSL) for ACCUs in Australia, the availability of generic ACCU trades will simplify the process for Australian corporates to meet their obligations put forward by the Safeguard Mechanism, which came into effect in July this year.
“Now, with the capability to offer both project-specific and generic ACCUs, we are pleased to be able to offer a market-leading solution to local and global wholesale market participants, meeting a broad set of needs within the ACCU ecosystem”, said Ben Stuart, Chief Commercial Officer, Xpansiv.
“As momentum picks up, these contracts will enable us to distribute additional price signals and data insights, in turn allowing market participants to build and take advantage of greater liquidity and pricing transparency.”
Beyond the offering of generic ACCU contracts, the ACCU HIR contracts were chosen due to their popularity amongst both buyers as well as project developers and landowners in Australia.
“As the ACCU markets evolve, we will continue to expand the scope of generic contracts into other methodologies wherever the markets see a need,” said Stuart.
Twenty two leading Australian market participants are currently set up to execute project-specific trades on CBL, with 13 currently set up for the soft launch of the generic contracts. This number is expected to grow once generic contracts officially launch in Q1 2024.
Xpansiv operates the market infrastructure to rapidly scale the world’s energy transition. The company runs the largest spot exchange for environmental commodities, including carbon credits and renewable energy certificates. It is the premier provider of registry infrastructure for energy, power, and environmental markets. It also operates the largest independent platform for managing and selling solar renewable energy credits in North America.
CBL Markets (Australia) Pty Ltd holds an Australian Financial Services Licence (Licence No: 536825) which authorises it to carry on a financial services business to make a market in Australian Carbon Credit Units to wholesale clients.