The fund seeks to capitalise on the increasing focus on emissions' reductions by Australian organisations, investors and consumers and tap into the fast-growing domestic carbon market.
ACF aims to deliver strong returns for investors and promote investment in activities designed to accelerate climate action.
“For large companies,
reducing net emissions,
including through offsets –
is now voluntary in name
ACCU prices currently sit near their lowest level in over a year at $35.50.
Credits on the European Market are trading at ~A$132 and credits under the New Zealand scheme are trading at ~A$69.25 making the Australian market an affordable, yet growing, option.
Forecasts suggest Australia’s carbon price must reach A$150/unit by 2030 in order to reach net zero by 2050.
There is an effective floor price in place on ACCUs which is set by the Federal Government and minimises the downside risk of investment.
The number of entities registered to hold ACCU’s
Current value of the ACCU market
Average Time Taken To Open An ANREU Registry Account
Reducing carbon emissions has significant flow on effects that can be categorised under: environmental co-benefits, social and economic co-benefits, and First nations co-benefits.
We believe that it is important that investment is focused on keeping these benefits within Australia.
The government is the largest current buyer of ACCUs most recently contracting them at ~$17/ACCU.
Further to this, the recent shift in government policy to free up ACCU supply essentially places a ~$24 floor on a significant portion of ACCU supply leaving minimal downside to the ACCU price.
ACCUs are perceived globally as the ‘gold standard’ in carbon offsets.
They are regulated by several government bodies to ensure they maintain integrity and the environmental benefits are guaranteed to remain over time.