Avoided deforestation ACCU Sep supply hits record high

Spanish Market: Emissions
21/10/26

Australian Carbon Credit Units (ACCUs) from avoided deforestation (AD) projects made up more than 60pc of the total 3.15mn issuances in September, reaching a monthly record high for the method, with all projects involving environmental markets investor GreenCollar's subsidiary Terra Carbon.

AD ACCU supply totalled nearly 1.95mn units last month, up from 735,153 in August and surpassing the entire annual supply of 900,304 units in the July 2025-June 2026 period, according to an Argus analysis of Clean Energy Regulator (CER) registry data published on 21 October.

Annual AD ACCU supply ranged between 2.28mn-2.37mn units over 2020-24 and reached 2.67mn in 2024-25. Issuances in August-September 2026, at 2.68mn units, surpassed annual supply in each of the past six years.

Issuances last month came from 13 projects, of which seven had Terra Carbon as the project proponent with a combined 529,545 ACCUs. Terra Carbon is the agent for the other six projects, with a combined 1.41mn issuances (see table).

The sharp increase in AD issuances is expected to continue over the coming months. The CER said in its April-June quarterly report on 28 August that one source of future supply would be ACCUs issued for eligible growth in forest biomass over AD projects' crediting periods.

This had resulted in an additional 0.3mn ACCUs being issued to two projects as of the end of August, the CER said then, reflecting an average 20pc increase in carbon stocks over their 15-year crediting periods. Project proponents can earn additional ACCUs where field surveys demonstrate eligible increases in carbon stored in forests, subject to strict biomass measurement requirements.

The CER said earlier this year that it expected ACCU issuances to reach 22mn-26mn units in 2026. It expects supply to reach the upper end of that range, general manager of carbon markets Kathryn Smith said at the Carbon Market Institute's (CMI) 2026 Australasian Emissions Reduction Summit in Adelaide on 20 October.

Issuances in September also came from human-induced regeneration (HIR) projects, at 502,016 ACCUs, and landfill gas projects, at 390,492 units, followed by other methods.

ACCU spot prices showed signs of weakening in late October. Argus assessed generic ACCUs at A$37.75/t CO2 equivalent ($26.40/t CO2e) on 20 October, down from A$38.35/t CO2e on 2 October.

By Juan Weik and Lawrence Wen

Avoided deforestation ACCU issuances in September 2026			unit
Project proponent	Agent	Project name	ACCUs
The Fords Bridge Aggregation Carbon Project	Terra Carbon	Fords Bridge Aggregation Native Forest Protection	597,337
Michael John Nicholson	Terra Carbon	Glenwood Native Forest Protection	238,628
Terra Carbon	n/a	Meadow Glen Native Forest Protection	236,292
Ashwood Carbon Project	Terra Carbon	Ashwood Native Forest Protection	195,196
Dorothy Rana Manns; Sydney John Manns	Terra Carbon	Dijoe Station Native Forest Protection	182,539
David John Harrison; Trictor Investments	Terra Carbon	Nullawarra Station #2 Native Forest Protection	128,767
Terra Carbon	n/a	Killala Native Forest Protection	99,861
Terra Carbon	n/a	Bogan Downs Native Forest Protection	76,716
David John Harrison; Trictor Investments	Terra Carbon	Nullawarra Station Native Forest Protection	74,638
Terra Carbon	n/a	Etiwanda Native Forest Protection	73,231
Terra Carbon	n/a	Glen Hope Native Forest Protection	27,332
Terra Carbon	n/a	Lynwood Native Forest Protection	8,876
Terra Carbon	n/a	Narrandool Native Forest Protection	7,237
Clean Energy Regulator

ACCU issuance by method type (mn) mn

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20/10/26

Details drive the future of REC markets

Houston, 20 October (Argus) — Registries that track and issue renewable energy certificates (RECs) are supplying more data to voluntary market participants as buying habits — and scrutiny on those habits — take on new layers of complexity. REC buyers are calling for more data to inform their purchases. The registries aiming to satisfy those requests, such as by adding generation tracking on an hourly basis, have been careful to work within the existing market framework. Providing information like hourly tracking is not "about replacing the existing REC infrastructure" but expanding it, according to Jeff Berman, vice president for registry solutions at Xpansiv, which owns the North American Renewables Registry (NAR). "At the core, the only difference should be at the point of issuance," he said. "Instead of having a month and a year vintage, you have an hour and a day vintage. 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Buyers retire credits on a monthly or annual basis to cover their power use, which means they continue to rely on other forms of generation when renewables are not available, even if on their books they exclusively use zero-emissions electricity. Companies have largely used their own discretion when choosing projects, with some selecting generation in the same region and others prioritizing support in areas with less wind or solar, even if it is across the country. The proposed changes are "rooted in the growing need for more accurate emissions accounting", according to the GHG Protocol, which intends to implement the revisions at the end of 2028. The proposal has sparked backlash from businesses and raised concerns that the new rules could undercut corporate efforts to scrub emissions from the power sector . More sophisticated requirements could increase reporting burdens and costs, discouraging clean energy procurements. 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The trend has already resulted in companies like Google reviving shuttered nuclear plants . Echoing that interest, Xpansiv's CBL platform in the past year launched "emissions-free energy certificates" for the PJM and NEPOOL markets to provide a tradeable instrument for nuclear. Registries are still analyzing the demand for more niche inclusions. CleanCounts plans to launch other, more granular offerings in late 2026 or early 2027, including information to denote generators on tribal lands, agrivoltaic projects and hydropower stations certified by Low Impact Hydropower Institute (LIHI) for minimizing their environmental impacts. The LIHI tag already appears on certain qualifying projects in the NAR registry. Buyers will likely place importance on new resource traits as the market continues to evolve. NAR has garnered interest from carbon capture and storage facilities, and it is working on time-shifted certificates that would better capture the benefits of energy storage systems. NAR plans to implement the feature "in the near future", Berman said. While companies and accountability watchdogs will ultimately determine demand, the registries that make the markets function will continue to refine their offerings in response. "We'll provide the mechanism to do it and let people decide," Gerber said. "But we do know that the future of these certificates really is based off of the need to have access to more granular information." By Patrick Zemanek Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Offtakes main option for EU ETS CDR purchases

20/10/26

Offtakes main option for EU ETS CDR purchases

London, 20 October (Argus) — Offtake agreements with developers of CO2 removal (CDR) projects is the key mechanism that the European Commission is considering to employ for the centralised purchases of at least 250mn CDR credits under the EU emissions trading system (ETS) in 2031-40, the commission's carbon removal lead Fabien Ramos said at the Carbon Unbound conference on Tuesday. The agreements will probably need to be signed before the purchasing programme begins in 2031. As part of its broader EU ETS review proposal in July, the commission proposed auctioning 250mn ETS allowances in phase five — between 2031-40 — to raise revenues for the purchasing of an equivalent amount of domestic and permanent CDR units. The proposal only includes biogenic CO2 with carbon capture and storage (BioCCS) and direct air capture with carbon capture and storage (Daccs) credits, and includes a reserve of 10mn additional allowances, should funding gaps emerge. Offtake agreements need to be signed "quite in advance", five years or more before the credits are delivered. But the commission cannot fund the purchases before 2031 because ETS revenues earmarked for the programme will only begin flowing into the budget from then, Ramos said. Such agreements could "unlock financing at scale" and "totally change the [CDR] market", chief executive of carbon crediting standard Rainbow Ludovic Chatoux said. If the commission waits until 2031 to sign its first offtakes, it risks losing the necessary years needed to scale the market sufficiently to deliver 250mn credits by 2040, he added. The commission can anticipate and prepare the programme in advance, Ramos said, although some questions on how the purchasing will work remain to be answered. "We still need to define some elements," Ramos said. The commission is still balancing the frequency of the purchases and the type of contracts to be signed with project developers, but offtake agreements would make "much sense", he said. Purchases will likely be scaled up gradually towards 2040. The idea in 2040 is to have around 40mn-50mn CDR credits to be supplied in the context of this purchasing programme, Ramos said. The commission will publish a delegated act setting out the different aspects of this programme, which could also include other options other than offtake agreements, Ramos said. Ramos also said the commission is considering credits issued within the CRCF framework before 2031 to be eligible for the centralised purchases. This would support investment and scaling from now to the formal start of purchases in the next decade. The commission is also looking at how it can combine the purchasing of such credits with other sources of finance, Ramos said, given the premium removals hold over the EU ETS price. The gap could be filled by combining funds with other public finance, state aid, subsidies and private funds. The commission's impact assessment projects BioCCS costs at €214/t CO2 equivalent (CO2e) in 2030 and €176/t CO2e in 2040, while Daccs is estimated at €428/t CO2e in 2030 and €278/t CO2e in 2040. Separately, the commission on Monday announced it has selected its first Daccs project for support under the Innovation Fund, in a bid to scale the CDR sector in the region. It is also working to launch a call for carbon removal projects "later this year" through the European Innovation Council, with funding likely to total around €50mn, Ramos said. By Kiara Campagne Nieva Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Germany starts prep phase for 2027 CCfD tender

19/10/26

Germany starts prep phase for 2027 CCfD tender

London, 19 October (Argus) — Germany today launched the preliminary procedure for its third carbon for contracts for difference (CCfD) bidding round, scheduled to begin in May 2027, with a focus on hydrogen, carbon capture and utilisation/storage (CCU/S), and process heat. The preliminary phase will run until the end of the year. The successful bidders will be awarded contracts by the end of 2027. Germany's draft budget for 2027, which is currently undergoing parliamentary scrutiny, sets aside up to €8.7bn for CCfDs, of which most will flow into the 2027 CCfD funding round, the economy and energy ministry said. This will make it the biggest CCfD funding round so far. The bidding round is also subject to approval under state-aid rules from the European Commission. Separate sector-specific budgets for each of the technologies — hydrogen, CCU/S, process heat — will for the first time be earmarked in the 2027 round, with the aim to better take account of their specific abatement costs and requirements. This will ensure that similar projects compete with one another in the auction, the ministry said. The level of funding will be determined on the basis of participation in the preliminary procedure. For hydrogen, at least €1.5bn is reserved. The aim is to reduce the gap between production costs and the willingness of industrial customers to pay during the development phase of the hydrogen market, and to support "first movers". Germany's CCfD funding rounds are directed primarily at energy-intensive companies subject to the EU emissions trading system (EU ETS). The funding is designed to incentivise investment in various decarbonisation technologies. The ministry signed a total of 15 CCfDs in the first round for subsidies totalling €2.8bn in 2025. The oversubscribed second round concluded last month and had a budget of €5bn. The CCfDs offset the cost difference, compared with conventional production processes, and fluctuating energy and carbon allowance prices, over a 15-year period. CCfDs are "complementary" to the general conditions under which the industry operates, the ministry said, taking into account not just the EU ETS but also subsidies such as the power price compensation, which will be deducted from the support to prevent double-funding. The ministry also underlined the "high degree of insecurity" that characterises the current economic situation, and the "considerable pressure to act" emanating from the EU ETS due to the diminishing allowance volumes and the volatile carbon price. The CCfDs cover both capital and operating costs. Payments are made on the basis of obligated companies' ETS reporting on annual CO2 emissions. The ministry separately last week announced a new round of tenders for projects to decarbonise industrial processes under its BIK programme, which targets smaller companies than those eligible for CCfDs and subsidises capital costs only. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia's NSW moves to raise Mt Pleasant's coal limit

19/10/26

Australia's NSW moves to raise Mt Pleasant's coal limit

Sydney, 19 October (Argus) — The New South Wales (NSW) state Labor government plans to introduce legislation to allow Australian producer Mach Energy to increase production at its 12.5mn t/yr Mount Pleasant thermal coal mine to 16.5mn t/yr until 2032, it announced today. This comes after the nation's highest court in early October upheld a ruling that blocked the mine's expansion. Australia's High Court blocked Mach Energy's proposal to extend Mount Pleasant's operations from 2026 to 2048 and raise its annual run-of-mine (ROM) production limit to 21mn t/yr. The 7 October ruling found that state regulators had breached NSW's planning rules by failing to consider imposing conditions to minimise downstream greenhouse gas (GHG) emissions to the required extent. The decision sent the project back to state authorities for reassessment. The legislation proposed on 19 October will address the "unique legal uncertainty" arising from the High Court judgement, and is expected to be introduced in the next sitting fortnight, the government said. It includes a legal obligation for the mine to maintain current staffing levels of 826 permanent workers and contractors until 2032, protecting an estimated 400 jobs. Without legislative intervention, Mach Energy said it would need to scale back production at Mount Pleasant, possibly putting hundreds of jobs at risk, the government said. The proposed legislation will also place additional conditions on Mount Pleasant to minimise scope 3 emissions, in line with requirements placed on Glencore and Yancoal's recently-approved Hunter Valley Operations (HVO) mine. The HVO approval included conditions aimed at ensuring coal would only be sent to jurisdictions with policies to reduce GHG emissions in line with international climate agreements. In August, Mount Pleasant was granted a separate approval which raised its approved extraction rate to 12.5mn t/yr from 10.5mn t/yr and extended its operations from 2026 to 2032. The proposed legislation addresses Mount Pleasant's unique situation and will not be extended to any other mining projects, the state government said. It expects Mach Energy will continue to work through court processes to get approval to extend the mine's operations to 2048. By Emma Partis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Germany's Merz says France deal ends EU ICE phase-out

16/10/26

Germany's Merz says France deal ends EU ICE phase-out

Brussels, 16 October (Argus) — The EU's planned phase-out of new internal combustion engine (ICE) vehicles by 2035 is "history", German chancellor Friedrich Merz said today, citing a new Franco-German agreement on future CO2 standards for cars. A draft text of the German-French proposals circulating would retain the EU's 2035 target of a 90pc reduction in CO2 emissions without offsetting, while allowing greater use of renewable fuels. The text indicates support for a new category of zero-emission vehicles powered by renewable fuels of non-biological origin (RFNBOs), sustainable EU-produced biofuels and biogas from advanced feedstocks, waste and residues listed in Parts A and B of Annex IX. "We would also enable the use of biofuels as a means of achieving carbon neutrality," Merz said, arguing that technological neutrality is needed to achieve net-zero CO2 emissions. Merz said the agreement has backing from other member states, but needs to pass the EU legislative process. The proposal was criticised by German Green MEP Michael Bloss, the group's negotiator on car CO2 standards. "Just when many people want to buy an electric car, a further weakening of EU rules creates uncertainty and hesitation," Bloss said. "China has already gone electric, and that is precisely where European manufacturers are losing substantial market share." German EPP MEP Peter Liese welcomed the proposal, saying scrapping the ban on ICE cars can be done "without missing our climate targets." Use of "climate-friendly" fuels such as E20 should be expanded, he said. Liese backed the creation of a dedicated vehicle category for climate-friendly fuels, including e-fuels. He said there is broad support in the European Parliament for the European Commission's proposal to allow 7pc green steel to count towards compliance targets. Industry group European Biodiesel Board (EBB) welcomed the agreement but wants clarity on fuels eligibility. "Leaving out any RED-compliant feedstocks would hamper solutions that are already contributing to decarbonisation," said EBB secretary general Xavier Noyon. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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