Australia Carbon Credit Market Growth Analysis Report - Market Size, Share, Forecast Trends and Outlook (2025-2034)
Description
Australia Carbon Credit Market Trends
The growth of the Australia carbon credit market contributes to reducing greenhouse gas emissions, aiding in the achievement of Australia's climate objectives. It provides businesses with flexibility to meet emissions targets, either by purchasing credits or implementing their own strategies. Additionally, the market encourages innovation, creates economic opportunities, and generates employment in sustainable industries such as renewable energy. Demand for Australian carbon credits and renewable energy certificates increased significantly in 2023, with cancellations of Australian Carbon Credit Units (ACCUs) reaching 1 million, up from 855,000 in 2022. The Clean Energy Regulator (CER) anticipated higher demand due to stricter emissions reporting. CER collaborated with the ASX and Trovio Group on the upcoming Australian Carbon Exchange, set to launch in early 2025.
The Australia carbon credit market revenue is impacted by both domestic and international investment in climate initiatives. It encourages sustainable practices, bolstering corporate social responsibility. Additionally, it supports rural economies through offset projects such as reforestation, benefiting biodiversity. These initiatives help preserve ecosystem health while contributing to regional development and environmental enhancement.
Australia Carbon Credit Market Growth
International trade creates several opportunities in the Australia carbon credit market and promotes government accountability towards climate goals. By participating, Australia aligns with global frameworks such as the Paris Agreement. The market raises awareness about carbon footprints and allows businesses to generate credits, encouraging sustainability. In August 2024, Qantas committed to investing in a fund alongside Rio Tinto and BHP to support high-integrity, nature-based carbon projects in Australia. The fund aimed to raise AUD 250 million for carbon sequestration projects, generating Australian Carbon Credit Units (ACCUs). Qantas used its Climate Fund for decarbonisation initiatives, including Sustainable Aviation Fuel (SAF) and biofuel production.
The ACCU market offers regulatory certainty, stimulating growth of the Australia carbon credit market and aiding businesses in managing carbon pricing. It enhances corporate reputation by backing environmental sustainability, encouraging long-term investment in emissions reductions. Additionally, the market reduces environmental risks, promotes sustainable practices, and provides cost-effective compliance for businesses unable to cut emissions internally.
Australia Carbon Credit Market Insights
January 2025
The Well-Done Foundation introduced the first insured high-integrity carbon credits, backed by AXA reinsurance. These credits, created through methane sequestration, undergo rigorous validation and are guaranteed for up to 20 years. The initiative enhances transparency and reliability in the voluntary carbon market, addressing climate change and environmental risks from abandoned oil wells.
May 2024
Oka, The Carbon Insurance Company, expanded to Australia and partnered with Clima to offer insured carbon credits. These premium credits, protected by Oka's Carbon Protect™ solution, reduce due-diligence burdens and mitigate post-issuance risks for businesses, supporting corporate climate action and net-zero targets in Australia.
Australia Carbon Credit Market Drivers
Technological Innovations for Monitoring and Verification
Technological advancements, particularly in satellite monitoring, blockchain, and AI, are influencing the Australia carbon credit market dynamics and trends. These innovations enhance the monitoring and verification of carbon offset projects, ensuring greater accuracy and transparency in emission reductions. This, in turn, strengthens trust among investors, businesses, and consumers. Improved verification systems also streamline operations, reduce costs, and boost efficiency, encouraging greater participation in the carbon credit market and increasing its credibility. Achieving net zero requires rapid advancement in technologies like low-emissions hydrogen, sustainable aviation fuels, and direct air capture. The IEA and GenZero report highlight the role of carbon credits in incentivising these innovations. However, scaling up and investment must increase significantly, supported by government policies and financing, alongside improved emissions data and methodologies.
Carbon Credit Standardisation and Certification
As Australia’s carbon credit market expands, there is growing emphasis on standardising carbon credits to ensure transparency and build trust. Certification bodies, such as the Clean Energy Regulator (CER), have implemented strict standards for measuring, verifying, and monitoring carbon offset projects. These certifications provide buyers with assurance that the credits represent genuine, long-term emission reductions. Ongoing efforts aim to streamline and standardise certification processes, enhancing market credibility and ensuring carbon offset projects deliver real environmental benefits. This approach also fosters international recognition of Australian credits. The Australian Carbon Credit Unit (ACCU) scheme is a voluntary initiative created under the Carbon Credits (Carbon Farming Initiative) Act 2011 and the Carbon Credits (Carbon Farming Initiative) Rule 2015. It encourages investment in projects aimed at reducing emissions across various sectors of the economy.
Opportunities in the Australia Carbon Credit Market
The demand of the Australia carbon credit market is increasing as public awareness of climate change and the role of carbon offsetting in mitigating its effects grows. Consumers are more aware of the environmental practices of the companies they support and expect businesses to take responsibility for their carbon emissions. This shift in societal attitudes has led to greater demand for companies to offset their emissions, thereby driving the expansion of the carbon credit market. As sustainability becomes a key factor in purchasing decisions, businesses are under growing pressure to adopt carbon-neutral policies. The Australian Financial Markets Association (AFMA) has partnered with the Carbon Market Institute (CMI) to create standard documentation for over the counter (OTC) trading of Australian Carbon Credit Units (ACCUs). This initiative aims to address the lack of standardisation, which has hindered market development, and streamline ACCU transactions in the secondary market.
Market Restraints
The Australia carbon credit market faces several constraints that hinder its growth and effectiveness. A limited supply of credits can lead to price volatility, making it difficult for businesses to meet compliance targets. High implementation costs for carbon offset projects, such as reforestation, deter smaller players. Verification and monitoring challenges can compromise the accuracy and credibility of emissions reductions.
Regulatory uncertainty, such as changes to carbon pricing policies, creates instability for businesses. Additionally, market fragmentation, due to varying standards and certification bodies, complicates participation and international recognition. These challenges could be alleviated through improvements in regulation, technology, and policy, enabling the market to scale more effectively.
“Australia Carbon Credit Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Market Analysis by Type
According to the Australia carbon credit market analysis, the market is primarily driven by the voluntary sector, allowing businesses to actively reduce their carbon emissions. This fosters corporate social responsibility, attracts eco-conscious consumers, and enhances brand reputation. It also encourages innovation in carbon-reducing technologies and practices, providing flexibility for companies to meet sustainability goals. The Emissions Reduction Fund is a voluntary initiative designed to reduce Australia's greenhouse gas emissions by incentivising organisations and individuals to adopt emission-reducing practices and technologies. Eligible projects can earn Australian Carbon Credit Units (ACCUs), with one ACCU awarded for each tonne of CO2 equivalent stored or avoided. ACCUs can be sold for additional income, either through government contracts or on the secondary market.
The growth of the Australia carbon credit market is driven by the compliance carbon credit market, which ensures businesses meet required emissions reduction targets, supporting the country's climate objectives. By complying with regulations, companies avoid penalties and showcase environmental responsibility. It offers a structured approach to managing emissions, promotes long-term sustainable investments, and fosters innovation in emissions-reducing technologies.The Australian Carbon Credit Unit (ACCU) Scheme encourages individuals and businesses to run projects that reduce emissions or store carbon. Landowners and farmers can earn ACCUs by adopting approved methods, generating income while helping the environment through emissions reduction and carbon sequestration. The scheme supports sustainable land management and environmental benefits.
Market Analysis by Project Type
According to the Australia carbon credit market report, removal/sequestration projects focus on capturing and storing carbon, such as through reforestation or soil carbon sequestration. These initiatives help reduce atmospheric carbon, enhance biodiversity, and promote sustainable land management, while generating income from carbon credits.
Demand for the Australia carbon credit market is driven by avoidance and reduction projects, which aim to prevent greenhouse gas emissions, like renewable energy or energy efficiency projects. These efforts help businesses meet regulations, lower carbon footprints, and contribute to Australia's climate objectives, while generating carbon credits for further investment.
Market Analysis by End Use
The Australia carbon credit market benefits from the shift towards renewable energy sources such as solar and wind. These projects reduce dependence on fossil fuels, lowering greenhouse gas emissions, aiding regulatory compliance, and supporting Australia’s climate targets. They also stimulate economic growth and investment in clean energy technologies. The Australian Bureau of Statistics reported a 2% rise in net energy consumption in 2022-23, reaching 23,294 Petajoules (PJ), with household energy use growing by 3% and industry use by 4%. Renewable energy extraction increased by 12%, totalling 325 PJ.
In the power sector, carbon credit projects contribute to emission reductions in electricity generation by enhancing efficiency, adopting renewable technologies, and curbing power consumption. These efforts support Australia’s shift towards a low-carbon economy, create green energy jobs, and offer businesses a cost-effective means to meet regulatory standards and improve sustainability. According to the Australian government, total electricity generation in Australia rose by 1% in 2022–23, reaching approximately 274 terawatt hours (988 petajoules), driven by increased demand from varying weather conditions throughout the year.
The growth of the Australia carbon credit market is supported as the transportation sector reduces its carbon footprint through initiatives aimed at improving vehicle efficiency, adopting electric vehicles (EVs), and using alternative fuels. By engaging in the carbon credit market, businesses can meet emissions standards, boost sustainability, cut operational costs, and generate income through carbon credits. The ATEA estimated that transport contributed USD 164.4 billion to the economy in 2020-21, making up 7.9% of total GDP, and was the second-largest sector.
Aviation projects in the carbon credit market aim to reduce emissions by adopting cleaner technologies, improving fuel efficiency, and using sustainable aviation fuel (SAF). These efforts aid the sector's decarbonisation, enable airlines to meet regulatory targets, lower operational costs, enhance environmental reputations, and generate financial rewards through carbon credit creation.
Buildings play a key role in the Australia carbon credit market development by implementing energy efficiency improvements, sustainable designs, and renewable energy usage. These initiatives reduce emissions from heating, cooling, and electricity consumption, lower operating costs, enhance sustainability, and ensure compliance with energy efficiency regulations, while also offering financial rewards through carbon credits. In the June quarter of 2024, Australia completed 44,853 dwellings, with 28,228 of them being new private houses, marking an 11.4% rise, as reported by the Australian Bureau of Statistics (ABS) in 2024.
The industrial sector can earn carbon credits by implementing cleaner technologies, enhancing energy efficiency, and cutting emissions from manufacturing processes. These initiatives assist industries in meeting carbon regulations, lowering operational costs, promoting environmental sustainability, and creating opportunities to generate credits that can be traded or sold, encouraging further investment in low-carbon technologies.
Australia Carbon Credit Market Regional Insights
New South Wales Carbon Credit Market Overview
According to the Australia carbon credit industry analysis, New South Wales’ carbon credit market provides businesses with opportunities to reduce emissions through innovative projects. Emphasising environmental sustainability, it supports carbon sequestration to help businesses meet compliance targets while generating tradeable carbon credits. Carbon farming in NSW, such as tree planting and livestock management, enables landowners to earn ACCUs, helping to tackle climate change and reduce atmospheric carbon levels.
Queensland Carbon Credit Market Trends
Queensland’s carbon credit market focuses on land-based emissions reduction, including reforestation and agriculture. Committed to clean energy, the state encourages sustainable practices, promotes green technology investment, and offers businesses a cost-effective means of achieving emission targets. Queensland aims to reduce emissions by 75% by 2035, with landholders already earning income from carbon credits through farming projects.
Western Australia Carbon Credit Market Dynamics
Western Australia’s carbon credit market facilitates large-scale emissions reductions through renewable energy and sustainable land management. With growing demand for carbon credits, the market fosters local economic growth, environmental stewardship, and provides businesses with an efficient way to manage their carbon footprint. The state’s Carbon Farming and Land Restoration Program supports agricultural carbon sequestration with education, outreach, and financial assistance, funding reforestation and soil projects to remove 395,000 tonnes of CO2 over 25 years.
Competitive Landscape
The Australia carbon credit market key players focus on carbon farming, land restoration, and biodiversity projects to drive sustainable outcomes for businesses, farmers, and landowners. They assist organisations in achieving carbon neutrality through services like carbon credit generation, environmental compliance, and offsetting. By fostering partnerships and undertaking large-scale environmental projects, these companies restore degraded land, improve biodiversity, and promote environmental change. Their work spans agriculture, forestry, and land management sectors, helping industries combat climate change while enhancing land productivity and supporting Australia's transition to a carbon-neutral future.
Key Industry Players
AgriProve Pty Ltd: AgriProve Pty Ltd, founded in 2014 and headquartered in Australia, is a leader in carbon farming and environmental solutions. The company offers innovative methods to reduce greenhouse gas emissions, focusing on soil carbon sequestration and helping farmers implement sustainable practices for carbon credits and environmental benefit.
Cool Planet: Established in 2010 and based in the United States, Cool Planet is committed to reducing global carbon emissions. The company develops cutting-edge technologies that enable carbon capture and storage, creating sustainable solutions for industries to mitigate their environmental impact and promote a carbon-negative future.
GreenCollar: GreenCollar, founded in 2009 and headquartered in Sydney, Australia, is a prominent environmental market solutions provider. The company focuses on delivering carbon credit programs, including reforestation and land regeneration projects, helping businesses achieve sustainability goals and enhance environmental outcomes across agriculture, forestry, and land management sectors.
Tasman Environmental Markets Australia Pty Ltd: Tasman Environmental Markets Australia Pty Ltd, established in 2013 and based in Sydney, is a leading environmental services firm. Specialising in carbon farming and environmental offset projects, the company helps clients manage carbon credits, environmental compliance, and sustainable land practices to address climate change and support ecological restoration.
Other key players in the Australia carbon credit market report are Greenfleet Australia, Reforest Australia Pty Ltd., Earthed Consulting, MCi Carbon Pty Ltd., Corporate Carbon Group of Companies, and WeAct Pty Ltd., among others.
Recent Developments
October 2024
The Australian government supported the development of four new carbon credit methods proposed by state governments and indigenous groups. The methods focused on native forest management, savanna fire management, and wetland conservation. The proposals, part of the proponent-led model, aim to innovate emission reduction strategies and will undergo public consultation before final approval.
September 2024
Xpansiv partnered with S&P Global and CME Group to enhance Australia's carbon credit market. Their collaboration introduced new pricing mechanisms, including ACCU futures contracts, improving liquidity and risk management. This initiative aims to strengthen carbon price discovery, support emission reduction goals, and create a more efficient trading environment.
The growth of the Australia carbon credit market contributes to reducing greenhouse gas emissions, aiding in the achievement of Australia's climate objectives. It provides businesses with flexibility to meet emissions targets, either by purchasing credits or implementing their own strategies. Additionally, the market encourages innovation, creates economic opportunities, and generates employment in sustainable industries such as renewable energy. Demand for Australian carbon credits and renewable energy certificates increased significantly in 2023, with cancellations of Australian Carbon Credit Units (ACCUs) reaching 1 million, up from 855,000 in 2022. The Clean Energy Regulator (CER) anticipated higher demand due to stricter emissions reporting. CER collaborated with the ASX and Trovio Group on the upcoming Australian Carbon Exchange, set to launch in early 2025.
The Australia carbon credit market revenue is impacted by both domestic and international investment in climate initiatives. It encourages sustainable practices, bolstering corporate social responsibility. Additionally, it supports rural economies through offset projects such as reforestation, benefiting biodiversity. These initiatives help preserve ecosystem health while contributing to regional development and environmental enhancement.
Australia Carbon Credit Market Growth
International trade creates several opportunities in the Australia carbon credit market and promotes government accountability towards climate goals. By participating, Australia aligns with global frameworks such as the Paris Agreement. The market raises awareness about carbon footprints and allows businesses to generate credits, encouraging sustainability. In August 2024, Qantas committed to investing in a fund alongside Rio Tinto and BHP to support high-integrity, nature-based carbon projects in Australia. The fund aimed to raise AUD 250 million for carbon sequestration projects, generating Australian Carbon Credit Units (ACCUs). Qantas used its Climate Fund for decarbonisation initiatives, including Sustainable Aviation Fuel (SAF) and biofuel production.
The ACCU market offers regulatory certainty, stimulating growth of the Australia carbon credit market and aiding businesses in managing carbon pricing. It enhances corporate reputation by backing environmental sustainability, encouraging long-term investment in emissions reductions. Additionally, the market reduces environmental risks, promotes sustainable practices, and provides cost-effective compliance for businesses unable to cut emissions internally.
Australia Carbon Credit Market Insights
- According to the Australian Government, 2024, the land and sea transport method, expiring on 31 March 2025, enables projects to earn ACCUs by reducing emissions through fuel switching and energy-efficient transport practices. This encourages businesses to adopt sustainable transport practices, contributing to Australia’s emissions reduction targets and offering financial incentives through the sale of ACCUs.
- Australia's State Action Plan, submitted to the ICAO in 2022, focuses on reducing aviation carbon emissions. It includes measures such as fuel-efficient air traffic management, improved aircraft operations, and introducing newer, more efficient planes. Australian airlines, including Qantas and Virgin Australia, are committed to net-zero emissions by 2050 and offer voluntary carbon offset schemes.
- The 19.4% rise in new residential construction in Australia, reaching USD 7.14 billion in January 2024, as per Australian Bureau of Statistics, presents opportunities for carbon credit market growth. Sustainable construction projects, including energy-efficient buildings and renewable energy adoption, can generate Australian Carbon Credit Units (ACCUs), contributing to emissions reduction targets while creating economic value in the green building sector.
January 2025
The Well-Done Foundation introduced the first insured high-integrity carbon credits, backed by AXA reinsurance. These credits, created through methane sequestration, undergo rigorous validation and are guaranteed for up to 20 years. The initiative enhances transparency and reliability in the voluntary carbon market, addressing climate change and environmental risks from abandoned oil wells.
May 2024
Oka, The Carbon Insurance Company, expanded to Australia and partnered with Clima to offer insured carbon credits. These premium credits, protected by Oka's Carbon Protect™ solution, reduce due-diligence burdens and mitigate post-issuance risks for businesses, supporting corporate climate action and net-zero targets in Australia.
Australia Carbon Credit Market Drivers
Technological Innovations for Monitoring and Verification
Technological advancements, particularly in satellite monitoring, blockchain, and AI, are influencing the Australia carbon credit market dynamics and trends. These innovations enhance the monitoring and verification of carbon offset projects, ensuring greater accuracy and transparency in emission reductions. This, in turn, strengthens trust among investors, businesses, and consumers. Improved verification systems also streamline operations, reduce costs, and boost efficiency, encouraging greater participation in the carbon credit market and increasing its credibility. Achieving net zero requires rapid advancement in technologies like low-emissions hydrogen, sustainable aviation fuels, and direct air capture. The IEA and GenZero report highlight the role of carbon credits in incentivising these innovations. However, scaling up and investment must increase significantly, supported by government policies and financing, alongside improved emissions data and methodologies.
Carbon Credit Standardisation and Certification
As Australia’s carbon credit market expands, there is growing emphasis on standardising carbon credits to ensure transparency and build trust. Certification bodies, such as the Clean Energy Regulator (CER), have implemented strict standards for measuring, verifying, and monitoring carbon offset projects. These certifications provide buyers with assurance that the credits represent genuine, long-term emission reductions. Ongoing efforts aim to streamline and standardise certification processes, enhancing market credibility and ensuring carbon offset projects deliver real environmental benefits. This approach also fosters international recognition of Australian credits. The Australian Carbon Credit Unit (ACCU) scheme is a voluntary initiative created under the Carbon Credits (Carbon Farming Initiative) Act 2011 and the Carbon Credits (Carbon Farming Initiative) Rule 2015. It encourages investment in projects aimed at reducing emissions across various sectors of the economy.
Opportunities in the Australia Carbon Credit Market
The demand of the Australia carbon credit market is increasing as public awareness of climate change and the role of carbon offsetting in mitigating its effects grows. Consumers are more aware of the environmental practices of the companies they support and expect businesses to take responsibility for their carbon emissions. This shift in societal attitudes has led to greater demand for companies to offset their emissions, thereby driving the expansion of the carbon credit market. As sustainability becomes a key factor in purchasing decisions, businesses are under growing pressure to adopt carbon-neutral policies. The Australian Financial Markets Association (AFMA) has partnered with the Carbon Market Institute (CMI) to create standard documentation for over the counter (OTC) trading of Australian Carbon Credit Units (ACCUs). This initiative aims to address the lack of standardisation, which has hindered market development, and streamline ACCU transactions in the secondary market.
Market Restraints
The Australia carbon credit market faces several constraints that hinder its growth and effectiveness. A limited supply of credits can lead to price volatility, making it difficult for businesses to meet compliance targets. High implementation costs for carbon offset projects, such as reforestation, deter smaller players. Verification and monitoring challenges can compromise the accuracy and credibility of emissions reductions.
Regulatory uncertainty, such as changes to carbon pricing policies, creates instability for businesses. Additionally, market fragmentation, due to varying standards and certification bodies, complicates participation and international recognition. These challenges could be alleviated through improvements in regulation, technology, and policy, enabling the market to scale more effectively.
“Australia Carbon Credit Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
- Voluntary
- Compliance
- Removal/Sequestration Projects
- Avoidance/Reduction Projects
- Energy
- Power
- Transportation
- Aviation
- Buildings
- Industrial
- Others
- New South Wales
- Victoria
- Queensland
- Australian Capital Territory
- Western Australia
- Others
Market Analysis by Type
According to the Australia carbon credit market analysis, the market is primarily driven by the voluntary sector, allowing businesses to actively reduce their carbon emissions. This fosters corporate social responsibility, attracts eco-conscious consumers, and enhances brand reputation. It also encourages innovation in carbon-reducing technologies and practices, providing flexibility for companies to meet sustainability goals. The Emissions Reduction Fund is a voluntary initiative designed to reduce Australia's greenhouse gas emissions by incentivising organisations and individuals to adopt emission-reducing practices and technologies. Eligible projects can earn Australian Carbon Credit Units (ACCUs), with one ACCU awarded for each tonne of CO2 equivalent stored or avoided. ACCUs can be sold for additional income, either through government contracts or on the secondary market.
The growth of the Australia carbon credit market is driven by the compliance carbon credit market, which ensures businesses meet required emissions reduction targets, supporting the country's climate objectives. By complying with regulations, companies avoid penalties and showcase environmental responsibility. It offers a structured approach to managing emissions, promotes long-term sustainable investments, and fosters innovation in emissions-reducing technologies.The Australian Carbon Credit Unit (ACCU) Scheme encourages individuals and businesses to run projects that reduce emissions or store carbon. Landowners and farmers can earn ACCUs by adopting approved methods, generating income while helping the environment through emissions reduction and carbon sequestration. The scheme supports sustainable land management and environmental benefits.
Market Analysis by Project Type
According to the Australia carbon credit market report, removal/sequestration projects focus on capturing and storing carbon, such as through reforestation or soil carbon sequestration. These initiatives help reduce atmospheric carbon, enhance biodiversity, and promote sustainable land management, while generating income from carbon credits.
Demand for the Australia carbon credit market is driven by avoidance and reduction projects, which aim to prevent greenhouse gas emissions, like renewable energy or energy efficiency projects. These efforts help businesses meet regulations, lower carbon footprints, and contribute to Australia's climate objectives, while generating carbon credits for further investment.
Market Analysis by End Use
The Australia carbon credit market benefits from the shift towards renewable energy sources such as solar and wind. These projects reduce dependence on fossil fuels, lowering greenhouse gas emissions, aiding regulatory compliance, and supporting Australia’s climate targets. They also stimulate economic growth and investment in clean energy technologies. The Australian Bureau of Statistics reported a 2% rise in net energy consumption in 2022-23, reaching 23,294 Petajoules (PJ), with household energy use growing by 3% and industry use by 4%. Renewable energy extraction increased by 12%, totalling 325 PJ.
In the power sector, carbon credit projects contribute to emission reductions in electricity generation by enhancing efficiency, adopting renewable technologies, and curbing power consumption. These efforts support Australia’s shift towards a low-carbon economy, create green energy jobs, and offer businesses a cost-effective means to meet regulatory standards and improve sustainability. According to the Australian government, total electricity generation in Australia rose by 1% in 2022–23, reaching approximately 274 terawatt hours (988 petajoules), driven by increased demand from varying weather conditions throughout the year.
The growth of the Australia carbon credit market is supported as the transportation sector reduces its carbon footprint through initiatives aimed at improving vehicle efficiency, adopting electric vehicles (EVs), and using alternative fuels. By engaging in the carbon credit market, businesses can meet emissions standards, boost sustainability, cut operational costs, and generate income through carbon credits. The ATEA estimated that transport contributed USD 164.4 billion to the economy in 2020-21, making up 7.9% of total GDP, and was the second-largest sector.
Aviation projects in the carbon credit market aim to reduce emissions by adopting cleaner technologies, improving fuel efficiency, and using sustainable aviation fuel (SAF). These efforts aid the sector's decarbonisation, enable airlines to meet regulatory targets, lower operational costs, enhance environmental reputations, and generate financial rewards through carbon credit creation.
Buildings play a key role in the Australia carbon credit market development by implementing energy efficiency improvements, sustainable designs, and renewable energy usage. These initiatives reduce emissions from heating, cooling, and electricity consumption, lower operating costs, enhance sustainability, and ensure compliance with energy efficiency regulations, while also offering financial rewards through carbon credits. In the June quarter of 2024, Australia completed 44,853 dwellings, with 28,228 of them being new private houses, marking an 11.4% rise, as reported by the Australian Bureau of Statistics (ABS) in 2024.
The industrial sector can earn carbon credits by implementing cleaner technologies, enhancing energy efficiency, and cutting emissions from manufacturing processes. These initiatives assist industries in meeting carbon regulations, lowering operational costs, promoting environmental sustainability, and creating opportunities to generate credits that can be traded or sold, encouraging further investment in low-carbon technologies.
Australia Carbon Credit Market Regional Insights
New South Wales Carbon Credit Market Overview
According to the Australia carbon credit industry analysis, New South Wales’ carbon credit market provides businesses with opportunities to reduce emissions through innovative projects. Emphasising environmental sustainability, it supports carbon sequestration to help businesses meet compliance targets while generating tradeable carbon credits. Carbon farming in NSW, such as tree planting and livestock management, enables landowners to earn ACCUs, helping to tackle climate change and reduce atmospheric carbon levels.
Queensland Carbon Credit Market Trends
Queensland’s carbon credit market focuses on land-based emissions reduction, including reforestation and agriculture. Committed to clean energy, the state encourages sustainable practices, promotes green technology investment, and offers businesses a cost-effective means of achieving emission targets. Queensland aims to reduce emissions by 75% by 2035, with landholders already earning income from carbon credits through farming projects.
Western Australia Carbon Credit Market Dynamics
Western Australia’s carbon credit market facilitates large-scale emissions reductions through renewable energy and sustainable land management. With growing demand for carbon credits, the market fosters local economic growth, environmental stewardship, and provides businesses with an efficient way to manage their carbon footprint. The state’s Carbon Farming and Land Restoration Program supports agricultural carbon sequestration with education, outreach, and financial assistance, funding reforestation and soil projects to remove 395,000 tonnes of CO2 over 25 years.
Competitive Landscape
The Australia carbon credit market key players focus on carbon farming, land restoration, and biodiversity projects to drive sustainable outcomes for businesses, farmers, and landowners. They assist organisations in achieving carbon neutrality through services like carbon credit generation, environmental compliance, and offsetting. By fostering partnerships and undertaking large-scale environmental projects, these companies restore degraded land, improve biodiversity, and promote environmental change. Their work spans agriculture, forestry, and land management sectors, helping industries combat climate change while enhancing land productivity and supporting Australia's transition to a carbon-neutral future.
Key Industry Players
AgriProve Pty Ltd: AgriProve Pty Ltd, founded in 2014 and headquartered in Australia, is a leader in carbon farming and environmental solutions. The company offers innovative methods to reduce greenhouse gas emissions, focusing on soil carbon sequestration and helping farmers implement sustainable practices for carbon credits and environmental benefit.
Cool Planet: Established in 2010 and based in the United States, Cool Planet is committed to reducing global carbon emissions. The company develops cutting-edge technologies that enable carbon capture and storage, creating sustainable solutions for industries to mitigate their environmental impact and promote a carbon-negative future.
GreenCollar: GreenCollar, founded in 2009 and headquartered in Sydney, Australia, is a prominent environmental market solutions provider. The company focuses on delivering carbon credit programs, including reforestation and land regeneration projects, helping businesses achieve sustainability goals and enhance environmental outcomes across agriculture, forestry, and land management sectors.
Tasman Environmental Markets Australia Pty Ltd: Tasman Environmental Markets Australia Pty Ltd, established in 2013 and based in Sydney, is a leading environmental services firm. Specialising in carbon farming and environmental offset projects, the company helps clients manage carbon credits, environmental compliance, and sustainable land practices to address climate change and support ecological restoration.
Other key players in the Australia carbon credit market report are Greenfleet Australia, Reforest Australia Pty Ltd., Earthed Consulting, MCi Carbon Pty Ltd., Corporate Carbon Group of Companies, and WeAct Pty Ltd., among others.
Recent Developments
October 2024
The Australian government supported the development of four new carbon credit methods proposed by state governments and indigenous groups. The methods focused on native forest management, savanna fire management, and wetland conservation. The proposals, part of the proponent-led model, aim to innovate emission reduction strategies and will undergo public consultation before final approval.
September 2024
Xpansiv partnered with S&P Global and CME Group to enhance Australia's carbon credit market. Their collaboration introduced new pricing mechanisms, including ACCU futures contracts, improving liquidity and risk management. This initiative aims to strengthen carbon price discovery, support emission reduction goals, and create a more efficient trading environment.
Table of Contents
103 Pages
- 1 Preface
- 2 Report Coverage – Key Segmentation and Scope
- 3 Report Description
- 3.1 Market Definition and Outlook
- 3.2 Properties and Applications
- 3.3 Market Analysis
- 3.4 Key Players
- 4 Key Assumptions
- 5 Executive Summary
- 5.1 Overview
- 5.2 Key Drivers
- 5.3 Key Developments
- 5.4 Competitive Structure
- 5.5 Key Industrial Trends
- 6 Market Snapshot
- 7 Opportunities and Challenges in the Market
- 8 Asia Pacific Carbon Credit Market Overview
- 8.1 Key Industry Highlights
- 8.2 Asia Pacific Carbon Credit Historical Market (2018-2024)
- 8.3 Asia Pacific Carbon Credit Market Forecast (2025-2034)
- 9 Australia Carbon Credit Market Overview
- 9.1 Key Industry Highlights
- 9.2 Australia Carbon Credit Historical Market (2018-2024)
- 9.3 Australia Carbon Credit Market Forecast (2025-2034)
- 10 Australia Carbon Credit Market by Type
- 10.1 Voluntary
- 10.1.1 Historical Trend (2018-2024)
- 10.1.2 Forecast Trend (2025-2034)
- 10.2 Compliance
- 10.2.1 Historical Trend (2018-2024)
- 10.2.2 Forecast Trend (2025-2034)
- 11 Australia Carbon Credit Market by Project Type
- 11.1 Removal/Sequestration Projects
- 11.1.1 Historical Trend (2018-2024)
- 11.1.2 Forecast Trend (2025-2034)
- 11.2 Avoidance/Reduction Projects
- 11.2.1 Historical Trend (2018-2024)
- 11.2.2 Forecast Trend (2025-2034)
- 12 Australia Carbon Credit Market by End Use
- 12.1 Energy
- 12.1.1 Historical Trend (2018-2024)
- 12.1.2 Forecast Trend (2025-2034)
- 12.2 Power
- 12.2.1 Historical Trend (2018-2024)
- 12.2.2 Forecast Trend (2025-2034)
- 12.3 Transportation
- 12.3.1 Historical Trend (2018-2024)
- 12.3.2 Forecast Trend (2025-2034)
- 12.4 Aviation
- 12.4.1 Historical Trend (2018-2024)
- 12.4.2 Forecast Trend (2025-2034)
- 12.5 Buildings
- 12.5.1 Historical Trend (2018-2024)
- 12.5.2 Forecast Trend (2025-2034)
- 12.6 Industrial
- 12.6.1 Historical Trend (2018-2024)
- 12.6.2 Forecast Trend (2025-2034)
- 12.7 Others
- 13 Australia Carbon Credit Market by Region
- 13.1 New South Wales
- 13.1.1 Historical Trend (2018-2024)
- 13.1.2 Forecast Trend (2025-2034)
- 13.2 Victoria
- 13.2.1 Historical Trend (2018-2024)
- 13.2.2 Forecast Trend (2025-2034)
- 13.3 Queensland
- 13.3.1 Historical Trend (2018-2024)
- 13.3.2 Forecast Trend (2025-2034)
- 13.4 Australian Capital Territory
- 13.4.1 Historical Trend (2018-2024)
- 13.4.2 Forecast Trend (2025-2034)
- 13.5 Western Australia
- 13.5.1 Historical Trend (2018-2024)
- 13.5.2 Forecast Trend (2025-2034)
- 13.6 Others
- 14 Market Dynamics
- 14.1 SWOT Analysis
- 14.1.1 Strengths
- 14.1.2 Weaknesses
- 14.1.3 Opportunities
- 14.1.4 Threats
- 14.2 Porter’s Five Forces Analysis
- 14.2.1 Supplier’s Power
- 14.2.2 Buyer’s Power
- 14.2.3 Threat of New Entrants
- 14.2.4 Degree of Rivalry
- 14.2.5 Threat of Substitutes
- 14.3 Key Indicators of Demand
- 14.4 Key Indicators of Price
- 15 Competitive Landscape
- 15.1 Market Structure
- 15.2 Company Profile
- 15.2.1 AgriProve Pty Ltd
- 15.2.1.1 Company Overview
- 15.2.1.2 Product Portfolio
- 15.2.1.3 Demographic Reach and Achievements
- 15.2.1.4 Certifications
- 15.2.2 Cool Planet
- 15.2.2.1 Company Overview
- 15.2.2.2 Product Portfolio
- 15.2.2.3 Demographic Reach and Achievements
- 15.2.2.4 Certifications
- 15.2.3 GreenCollar
- 15.2.3.1 Company Overview
- 15.2.3.2 Product Portfolio
- 15.2.3.3 Demographic Reach and Achievements
- 15.2.3.4 Certifications
- 15.2.4 Tasman Environmental Markets Australia Pty Ltd
- 15.2.4.1 Company Overview
- 15.2.4.2 Product Portfolio
- 15.2.4.3 Demographic Reach and Achievements
- 15.2.4.4 Certifications
- 15.2.5 Greenfleet Australia
- 15.2.5.1 Company Overview
- 15.2.5.2 Product Portfolio
- 15.2.5.3 Demographic Reach and Achievements
- 15.2.5.4 Certifications
- 15.2.6 Reforest Australia Pty Ltd.
- 15.2.6.1 Company Overview
- 15.2.6.2 Product Portfolio
- 15.2.6.3 Demographic Reach and Achievements
- 15.2.6.4 Certifications
- 15.2.7 Earthed Consulting
- 15.2.7.1 Company Overview
- 15.2.7.2 Product Portfolio
- 15.2.7.3 Demographic Reach and Achievements
- 15.2.7.4 Certifications
- 15.2.8 MCi Carbon Pty Ltd.
- 15.2.8.1 Company Overview
- 15.2.8.2 Product Portfolio
- 15.2.8.3 Demographic Reach and Achievements
- 15.2.8.4 Certifications
- 15.2.9 Corporate Carbon Group of Companies
- 15.2.9.1 Company Overview
- 15.2.9.2 Product Portfolio
- 15.2.9.3 Demographic Reach and Achievements
- 15.2.9.4 Certifications
- 15.2.10 WeAct Pty Ltd.
- 15.2.10.1 Company Overview
- 15.2.10.2 Product Portfolio
- 15.2.10.3 Demographic Reach and Achievements
- 15.2.10.4 Certifications
- 15.2.11 Others
- 16 Key Trends and Developments in the Market
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