News
15/04/25
Australia's carbon credit issuances nearly match demand
Australia's carbon credit issuances nearly match demand
Sydney, 15 April (Argus) — Demand for Australian Carbon Credit Units (ACCUs)
rose almost six-fold in the first compliance year of Australia's reformed
safeguard mechanism, although total carbon unit surrenders were nearly matched
by issuances of the new safeguard mechanism credits (SMCs). A total of 138
facilities out of 219 covered under the scheme surrendered 7.05mn ACCUs and
1.38mn SMCs for the July 2023-June 2024 financial year to manage their excess
emissions, up sharply from 1.22mn units a year earlier, according to data
released by the Clean Energy Regulator (CER) on 15 April. But the combined
8.44mn units surrendered were nearly matched by 8.3mn of SMC issuances to 63
facilities — of which almost 7mn will be now held for future compliance,
potentially weighing on market sentiment around ACCUs in the short to medium
term. The final SMC issuances for 2023-24 were below the maximum potential of
9.2mn first disclosed by the Climate Change Authority in November 2024. But that
was significantly higher than initially forecast and impacted ACCU spot prices
in the following months . Some market participants had been expecting most of
the SMCs to have been issued to coal miners, who benefitted from a change in the
method used to estimate fugitive methane emissions , but oil and gas extraction
accounted for just as many issuances as coal mining, each with around 3.07mn
units, or 37pc of the total, CER data released on 15 April. Metal ore mining and
processing, including ferrous, non-ferrous and precious metals, accounted for
around 13pc of all issuances, followed by chemicals and other industries.
Biggest SMC issuances and surrenders Shell has emerged as the company that
received the largest number of SMCs at a facility level, with its Prelude
floating LNG (FLNG) terminal issued with 1.07mn units as it reported scope 1
emissions of 1.85mn t of CO2 equivalent (CO2e) for a baseline of 2.93mn t of
CO2e. UK-South African firm Anglo American received a higher combined volume of
1.64mn SMCs, of which 1.02mn came from its Capcoal coal mine and 622,997 from
its Grosvenor coal mine in Queensland. Chevron received 622,554 SMCs across its
Gorgon and Wheatstone operations, while Australian independent Santos was issued
205,500 units across four facilities ( see table ). Meanwhile, SMC surrenders
were registered across 27 facilities. Coal miners in New South Wales (NSW) and
Queensland made the bulk of these surrenders at 991,857 units, including Anglo
American and Australian mining company Stanmore Resources ( see table ). Net
emissions fall Baselines were reset under the reformed safeguard mechanism,
which applies to facilities that emit more than 100,000t of CO2e in a compliance
year across several sectors, and now face a 4.9pc/yr decline rate until 2029-30
. Scope 1 emissions covered under the scheme fell from 138.7mn t of CO2e in
2022-23 to approximately 136mn t of CO2e in 2023-24, representing 31pc
Australia's total emissions in that year. Net safeguard emissions fell to
127.8mn t of CO2e from 137.9mn t of CO2e a year earlier following the surrender
of ACCUs and SMCs. The total liability in 2023-24 reached around 9.2mn t of CO2e
across 142 facilities, of which around 0.8mn t CO2e remained in an excess
situation on 1 April 2025, according to the CER. The 0.8mn t of CO2e is from
five facilities under the operational control of three companies, two of which
are in voluntary administration. The third company, Australian independent
Fitzroy, failed to manage an excess of 583,079t of CO2e for its Ironbark No. 1
and Carborough Downs Coal Mine facilities for 2023-24. It has entered an
enforceable undertaking with the CER and has committed to surrender the required
units, start feasibility studies to investigate carbon abatement opportunities
at the two facilities, and ensure neither is in an excess emissions situation
for the 2024-25 year on 1 April 2026. By Juan Weik Australia's SMC issuances
2023-24 t CO2e Facility Operator Sector SMCs issued FLNG SHELL AUSTRALIA Oil and
gas extraction 1,077,261 Capcoal Mine ANGLO COAL (CAPCOAL MANAGEMENT) Coal
mining 1,022,648 Ichthys LNG Project INPEX Operations Australia Oil and gas
extraction 768,900 Grosvenor Mine ANGLO COAL (MORANBAH NORTH MANAGEMENT) Coal
mining 622,997 Gudai-Darri Mine Mount Bruce Mining Metal ore mining 474,391
Kooragang Island ORICA AUSTRALIA Other basic chemical product 430,751 Gorgon
Operations CHEVRON AUSTRALIA Oil and gas extraction 388,803 Carmichael Coal Mine
Adani Mining Coal mining 351,232 APN01 Appin Colliery - ICH ENDEAVOUR COAL Coal
mining 320,457 TAHMOOR COAL MINE TAHMOOR COAL Coal mining 269,773 Wheatstone
Operations CHEVRON AUSTRALIA Oil and gas extraction 233,751 Port Kembla
Steelworks BLUESCOPE STEEL (AIS) Basic ferrous metal 232,088 Myuna Colliery
CENTENNIAL MYUNA Coal mining 155,043 Ravenswood Mine RAVENSWOOD GOLD Metal ore
mining 132,501 Bulga Coal Complex BULGA COAL MANAGEMENT Coal mining 128,269
WOR01 South32 Worsley Alumina Basic non-ferrous metal 117,189 Newman Power
Station APA TRANSMISSION (ROY HILL) Electricity generation 114,505 Condabri
Talinga Orana ORIGIN ENERGY UPSTREAM OPERATOR Oil and gas extraction 104,047
Wambo Coal Mine WAMBO COAL Coal mining 82,414 Spring Gully Reedy Creek Combabula
ORIGIN ENERGY UPSTREAM OPERATOR Oil and gas extraction 81,761 Fairview Santos
Oil and gas extraction 74,850 Pluto LNG Woodside Burrup Oil and gas extraction
73,370 Pinjarra Alumina Refinery Alcoa of Australia Basic non-ferrous metal
70,123 Virgin Australia National Transport VIRGIN AUSTRALIA HOLDINGS Air and
space transport 67,430 CEM NSW Berrima Maldon Boral Cement, lime, plaster and
concrete 63,844 Moranbah Incitec Pivot Other basic chemical product 63,529 CSBP
Kwinana Facility CSBP Fertiliser and pesticide 62,865 Curtis Island GLNG Plant
GLNG OPERATIONS Oil and gas extraction 60,273 Arcadia Santos Oil and gas
extraction 57,996 Nowra Plant Shoalhaven Starches Grain mill and cereal product
52,520 Ningaloo Vision FPSO Santos Oil and gas extraction 51,109 Solomon Power
Station FMG SOLOMON Electricity generation 49,749 QGC Upstream QGC PTY Oil and
gas extraction 47,428 King of the Hills GREENSTONE RESOURCES (WA) Metal ore
mining 40,725 Arrow Surat Operations Arrow Energy Holdings Oil and gas
extraction 37,987 Birkenhead Operations ADBRI Cement, lime, plaster and concrete
29,000 Moorvale Coal Mine PEABODY ENERGY AUSTRALIA Coal mining 26,921 Roma Hub
Santos Oil and gas extraction 21,545 Clermont Coal Operations Clermont Coal
Operations Coal mining 21,521 V/Line V/Line Corporation Rail passenger transport
20,960 Lake Vermont Mine THIESS Coal mining 19,541 NKS01 Nickel West Kalgoorlie
BHP NICKEL WEST Basic non-ferrous metal 17,666 Duketon South Operations Regis
Resources Metal ore mining 16,319 Daunia Mine BM Alliance Coal Operations Coal
mining 15,936 Fisherman's Landing CEMENT AUSTRALIA (QUEENSLAND) Cement, lime,
plaster and concrete 15,005 Cockburn Operations ADBRI Cement, lime, plaster and
concrete 14,615 Boyne Smelters Limited RIO TINTO ALUMINIUM Basic non-ferrous
metal 9,745 Mangoola MANGOOLA COAL OPERATIONS Coal mining 9,018 Liberty Bell Bay
Liberty Bell Bay Basic ferrous metal 8,762 Port Latta Pelletising Plant GRANGE
RESOURCES (TASMANIA) Basic ferrous product 7,519 Australian Gas Networks (Vic)
Australian Gas Networks Holding Gas supply 7,487 Opal Australian Paper Maryvale
Mill PAPER AUSTRALIA Pulp, paper and paperboard 7,041 Moolarben Coal Mine
MOOLARBEN COAL OPERATIONS Coal mining 4,609 Jax Mine Jax Coal Coal mining 4,082
Baralaba Coal Mine BARALABA COAL COMPANY Coal mining 3,841 CTC WA Facility
CENTURION TRANSPORT CO. Road freight transport 3,527 Daunia Mine WHITEHAVEN
DAUNIA Coal mining 3,353 South West Queensland Pipeline APA (SWQP) Pipeline and
other transport 2,633 Queensland Nitrates Ammonium Nitrate Plant Queensland
Nitrates Basic chemical manufacturing 2,382 Mount Pleasant Operations MACH
Energy Australia Coal mining 2,304 Dongara Operations ADBRI Cement, lime,
plaster and concrete 2,264 Collinsville Mine NC COAL COMPANY Coal mining 1,899
Bell Bay Smelter RIO TINTO ALUMINIUM (BELL BAY) Basic non-ferrous metal 1,770
Source: CER Australia's SMC surrenders 2023-24 t CO2e Facility Operator Sector
ACCUs surrendered SMCs surrendered DEN01 Dendrobium Coal Coal mining 40,000
196,075 United Coal Mine UNITED COLLIERIES Coal mining 52,973 190,000 Moranbah
North Mine ANGLO COAL (MORANBAH NORTH MANAGEMENT) Coal mining 0 183,699
Mandalong Mine CENTENNIAL MANDALONG Coal mining 32,254 155,043 South Walker
Creek STANMORE RESOURCES Coal mining 36,538 132,501 Hunter Valley Operations
mine HV OPERATIONS Coal mining 60,000 85,876 APLNG Facility CONOCOPHILLIPS
AUSTRALIA OPERATIONS Oil and gas extraction 0 85,774 Murrin Murrin Operations
MURRIN MURRIN OPERATIONS Metal ore mining 0 45,593 Kwinana Pigment Plant Tronox
Management Basic chemical 0 40,869 Kwinana Alumina Refinery Alcoa of Australia
Basic non-ferrous metal 52,729 37,849 Dawson Mine ANGLO COAL (DAWSON MANAGEMENT)
Coal mining 24,056 28,862 Wagerup Alumina Refinery Alcoa of Australia Basic
non-ferrous metal 37,271 26,498 Phosphate Hill Incitec Pivot Fertiliser and
pesticide 0 25,168 Chandala Processing Plant Tronox Management Basic chemical 0
23,215 Cloudbreak Mine CHICHESTER METALS Metal ore mining 8,411 19,262 Solomon
Mine FMG SOLOMON Metal ore mining 42,926 19,178 NKW01 Nickel West Kwinana
Facility BHP NICKEL WEST Basic non-ferrous metal 62,720 17,666 Coppabella Coal
Mine PEABODY ENERGY AUSTRALIA PCI Coal mining 0 15,719 Qenos Altona
Manufacturing QENOS Basic chemical 0 13,601 Rail THE PILBARA INFRASTRUCTURE Rail
freight transport 4,002 9,163 Angaston Operations ADBRI Cement, lime, plaster
and concrete 0 8,968 Western Port Works BlueScope Steel Basic ferrous metal 0
7,642 Otway BEACH ENERGY Oil and gas extraction 22,868 6,935 Multinet Network
and South Gippsland Pipeline MULTINET GAS (DB NO. 2) Gas supply 0 4,545 Drake
Mine Drake Mine Management Coal mining 2,244 4,082 Iron Bridge Mine IB
Operations Metal ore mining 2,414 2,146 Railton CEMENT AUSTRALIA (GOLIATH)
Cement, lime, plaster and concrete 0 681 Source: CER Send comments and request
more information at feedback@argusmedia.com Copyright © 2025. Argus Media group
. All rights reserved.
