Carbon Credit Prices: The underlying price of Australian Carbon Credit Units (ACCUs) directly impacts XCO2.AU, as it holds these units.

Supply and Demand of ACCUs: Factors influencing ACCU supply (e.g., project approvals) and demand (e.g., corporate offsetting goals) affect the ETF's price.

Government Policies: Changes in government regulations regarding carbon emissions and carbon trading schemes can significantly alter ACCU value and, consequently, XCO2.AU.

Investor Sentiment: Overall investor confidence in the carbon market and ESG investing can drive demand for XCO2.AU, impacting its price.

Exchange Rate Fluctuations: Changes in the AUD/USD exchange rate can affect the ETF's value, especially if the underlying ACCUs are linked to international carbon markets.

Management Fees and Expenses: The ETF's internal costs, such as management fees, indirectly impact returns and influence the price relative to the underlying ACCU value.

Market Liquidity: The ease with which XCO2.AU units can be bought and sold affects its price. Low liquidity can lead to price volatility.