Australia SMC

This assessment represents the value of a Safeguard Mechanism Credit (SMC) traded in the spot market. The Safeguard Mechanism aims to incentivise companies covered by the scheme to reduce their emissions by issuing SMCs to facilities that emit below their previously mandated baselines. These SMCs can be sold to third parties and used along with Australian Carbon Credit Units (ACCUs) to fulfil obligations under the Safeguard Mechanism, Australia's main regulated carbon market. A typical deal size of 5,000 tonnes of CO2 equivalent (tCO2e) to 50,000 tCO2e is considered at par in the assessment, while smaller deal sizes may be normalised downwards and bigger deals normalised upwards. The assessment is priced in Australian dollars (AUD).