September 20, 2021

Powerledger’s blockchain technology shortlisted as solution for Australian Carbon Exchange

Powerledger shortlisted by the Australian Government’s Clean Energy Regulator (CER)
Read more from AFR here
  • CER aims to accelerate the establishment of an Australian Carbon Exchange.
  • Powerledger has formed a consortium including The Midwest Renewable Energy Tracking System (M-RETS) and the Sydney Stock Exchange (SSX) to bid for the project.

Energy trading company Powerledger has been shortlisted by the Australian Government’s Clean Energy Regulator in the next phase for the delivery of the highly anticipated Australian Carbon Exchange.

The Australian Carbon Exchange will operate in a similar way to online stock exchanges, but in the purchase, clearing and settlement of Australian carbon credit units (ACCUs) and potentially other types of carbon units and certificates.

Development of an online carbon exchange will support Australian industries by increasing market transparency including pricing, lowering transaction costs and reducing red tape. It will also accelerate emissions reduction and provide a boost to Australia's economy.

The exchange will make the trading of ACCUs simpler, supporting the rapidly increasing demand from the corporate sector. It will help foster the growth in Australia’s vibrant carbon markets, where ACCUs credited from approved Emissions Reduction Fund (ERF) projects can be traded among individuals and businesses.

The proposed exchange market will make a significant contribution toward the government’s aim in “Streamlining private sector action to support emissions reductions”, a deregulation measure announced in the 2020 Federal Budget. One of these deregulation measures will see the Clean Energy Regulator halving the time taken to develop new ERF methods, and reducing the time it takes to assess applications for registering new ERF projects and issuing ACCUs. This will lead to increased and faster supply of ACCUs.

The Midwest Renewable Energy Tracking System (M-RETS) is a mission-driven environmental attribute tracking platform providing the data that is leading the drive toward economy-wide decarbonization. M-RETS currently owns and operates a powerful environmental commodity registry with hundreds of millions of certificates.

The Sydney Stock Exchange (SSX) is a tier one licensed stock exchange in Australia. As a trading venue, the SSX offers a globally competitive platform. 

Read more from Australian Financial Review here.

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