Australia’s Carbon Prices Rise to Highest Point Since January

Carbon credit prices in Australia surged at the start of the week, reaching levels not seen since January. The price spike followed Prime Minister Anthony Albanese’s re-election, which solidified the Labor Party’s mandate and signaled ongoing support for environmental and market reforms.

Tree planting efforts on an Australian hill, with wind turbines in the background.

According to Quantum, Generic Australian Carbon Credit Units (ACCUs)—excluding credits from avoided deforestation—were priced at $22.97 (AUD35.50) per tonne of CO₂ equivalent on Monday. That’s a 50-cent rise from the end of last week, bringing prices close to the year’s previous peak.

Market analysts say the increase reflects a measured but positive reaction. While many traders had anticipated a Labor win, the confirmation of a majority government reinforces expectations for a more stable and policy-driven carbon market environment.

‘It is undeniably a bullish outcome for the ACCU market over the medium and long term,’ one trader told Quantum. The trader added that companies covered under Australia’s Safeguard Mechanism are now expected to return to the market and spur activity.

One broker noted the result was ‘slightly better than neutral’ for pricing. A scenario in which Labor required Green Party support to form a minority government would likely have driven prices even higher due to stronger environmental demands.

Despite the modest increase, the broader trend suggests tightening supply and rising demand. Guy Dickinson, executive director at carbon brokerage firm Clima, noted that the Greens are expected to push for a more ambitious Safeguard Mechanism, which could increase credit demand from emitters.

‘Australians have given the Albanese Government an emphatic mandate for continuity in clean energy and decarbonisation policies,’ said John Connor, CEO of the Carbon Market Institute.

Looking ahead, attention now turns to the government’s upcoming 2035 emissions pledge under the Paris Agreement, due by September. Policy updates, including enhancements to the Safeguard Mechanism and the national carbon strategy, are expected to influence both market confidence and long-term demand.

Though modest, the current price rise signals a growing recognition of carbon’s value—and a maturing market that’s increasingly shaped by political certainty and investor expectations.