Carbon credit integrity.

TLDR - don’t underestimate where ACCU prices could be in the future and to differentiate where credits come from.

Right now, LGI mostly sells credits at or around the spot price. But not all ACCU’s are created equal. Methane abatement is permanent and permanency in carbon credits is a big deal and usually attracts a premium. The Australian carbon market is still on training wheels. Theres a fair chance ACCU pricing becomes more divergent between methods in time. There’s also a chance our carbon credit market is opened up to the international market, where prices of high integrity units is much higher and in demand. Lots of countries simply don’t have the natural capital resources to create carbon credits themselves.

Another advantage of LGI’s credit generation is the predictability and consistent flow. Other methods can be very hard to forecast and issuance can take years. This is great for longer term contracts with off takers, forward selling and other hedging strategies that other market participants would find harder to access.

If you’re not familiar with the carbon credit space.

Australia runs a mixed compliance / voluntary market. Most of the demand is coming from compliance buyers under the safeguard mechanism, which is bipartisan and considered necessary for Australia to meet our climate commitments. Demand is expected to grow as baselines for safeguard mechanism facilities increase, meaning they need to cut or offset emissions at an increasing rate towards 2050. But this increased demand may or may not be offset by ACCU method developments. E.g. proposed changes to savanna burning.