by Market emissions trading allows emitters to trade carbon credits to meet regulatory requirements for reducing greenhouse gas emissions. Emissions trading schemes are increasingly being adopted globally to limit emissions from power plants, industries and other sources.
The global Emissions Trading Market is estimated to be valued at US$ 334.8 billion in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Carbon credit demand has been growing steadily due to stringent greenhouse gas emission norms set by regulatory bodies across the world. Cap-and-trade programs and carbon taxes have incentivized adoption of cleaner fuels and technologies, driving the need for carbon credits. As more countries and regions commit to achieve net-zero emissions targets through regulations on emitters, the volume of carbon credit trading is expected to significantly increase through 2030. The market is expected to be further propelled by growing demand for carbon offsets to meet net-zero pledges of corporates and commitments made at COP26.
SWOT Analysis
Strength: Emissions trading market aims to reduce greenhouse gas emissions cost-effectively. It allows flexibility to organizations in cutting emissions wherever it is cheapest.
Weakness: There is a scope of manipulation in the emissions trading market. Lack of proper monitoring of emissions levels reported by organizations can undermine the objectives.
Opportunity: Growing awareness about climate change and initiatives like Paris agreement enlarge the potential for emissions trading mechanisms globally. New trading scenarios may emerge in future.
Threats: Non-participation of major emitters and variations in national climate policies pose challenges. Economic slowdowns can negatively impact demand.
Key Takeaways
The Global Emissions Trading Market Share is expected to witness high growth. The global Emissions Trading Market is estimated to be valued at US$ 334.8 billion in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030.
Europe dominates the global emissions trading market currently with the highest volume of carbon credit trading. The European Union Emissions Trading System (EU ETS) contributes significantly here.
Key players operating in the emissions trading market are Johnson & Johnson Services, Inc., European Energy Exchange (EEX), Greenomy, Intercontinental Exchange (ICE), Environmental Markets Association (EMA), and Carbon TradeX.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
