EU Carbon Permits rose to 72.99 EUR on August 29, 2025, up 1.77% from the previous day. Over the past month, EU Carbon Permits's price has risen 0.18%, and is up 3.83% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. This dataset includes a chart with historical data for EU Carbon Permits.

This dataset provides the annual voluntary carbon market transaction volume, value, and price for total traded carbon credits. In addition, it provides the cumulative issuances and retirements.As source mentioned, These data on voluntary carbon market dynamics come from EM’s database of voluntarily disclosed over-the-counter (OTC) carbon credit transactions, which are shared with EM by an international network of more than 180 “EM Respondents,” including project developers, investors, and intermediaries with headquarters in over 40 countries and representing carbon credit sales from thousands of nature-based and technological carbon projects in over 100 countries.Data on project registrations, credit issuances, and retirements come from the following project registries: ACR, CAR, CDM, City Forest Credits, Global Carbon Council, Gold Standard, Plan Vivo, and VCS.

As of April 2025, the European Union Emission Trading Scheme (EU ETS) carbon price was above ** U.S. dollars per metric tons of carbon dioxide equivalent (USD/tCO₂e). The EU ETS launched in 2005 as a cost-effective way of reducing greenhouse gas emissions, and was the world's first major international carbon market. The UK was formerly part of the EU ETS, but replaced this with its own system after withdrawing from the EU. As of April 2025, the price of carbon on the UK ETS was almost ** USD/tCO₂e.

This dataset forms the basis of a systematic analysis that examines different approaches and frameworks employed in forecasting future carbon credit prices.

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Carbon Credit Market Size 2025-2029

The carbon credit market size is forecast to increase by USD 1,966.3 billion at a CAGR of 32.1% between 2024 and 2029.

The market is experiencing significant growth due to rising emissions in the Earth's atmosphere, which necessitates the need for businesses and individuals to offset their carbon footprint. Booming investment and partnership deals in this market are driving its expansion, with various organizations recognizing the importance of reducing their carbon emissions and contributing to environmental sustainability. However, the fluctuating prices of carbon credits pose a challenge for market participants, as they can impact the profitability of carbon offsetting projects.
To stay competitive, market players must closely monitor carbon credit prices and adapt their strategies accordingly. In summary, the market is witnessing increasing demand due to growing environmental concerns and regulatory requirements, but its growth is influenced by the volatility of carbon credit prices.

What will the Carbon Credit Market Size during the forecast period?

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The market has gained significant traction in recent years as businesses and individuals seek to offset their carbon emissions and contribute to the global decarbonization effort. This market facilitates the buying and selling of carbon credits, which represent the right to emit a specific amount of greenhouse gases. The voluntary carbon market plays a crucial role in this context, enabling organizations to offset their carbon footprint beyond regulatory requirements. Net-zero greenhouse-gas emissions have become a key business objective, driving demand for carbon credits from various sources. Forestry projects are a significant contributor to the market. These projects involve the protection, restoration, or reforestation of forests, which act as carbon sinks, absorbing and storing carbon dioxide from the atmosphere.
Carbon emission reduction projects, such as renewable energy and energy efficiency initiatives, also contribute to the market. Carbon storage projects, including those focused on geological storage, are another essential component. The market's dynamics are influenced by various factors, including regulatory policies, market prices, and technological advancements. As the world moves towards a low-carbon economy, the demand for carbon credits is expected to continue growing, making it an attractive investment opportunity for businesses and individuals alike.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Power
  Energy
  Transportation
  Industrial
  Others


Type

  Compliance
  Voluntary


Geography

  Europe

    Germany
    UK
    France
    Italy


  Asia

    China


  North America



  Rest of World (ROW)

By End-user Insights

The power segment is estimated to witness significant growth during the forecast period.

Carbon credits represent financial instruments that enable organizations to invest in emission reduction projects, contributing to the global effort to transition from fossil fuels to renewable energy sources. These initiatives, which focus on conservation, biodiversity, and livelihoods, provide a means to reduce greenhouse gas emissions and mitigate the effects of climate change.

Additionally, the energy sector, specifically power generation, can benefit significantly from this shift, as renewable energy sources offer a sustainable and non-depleting alternative to coal and natural gas. To achieve the international goal of limiting global temperature rise to 2°C or 1.5°C above pre-industrial levels, the reduction of greenhouse gas emissions is crucial. Carbon credits facilitate this transition by incentivizing investment in renewable energy projects and reducing the overall carbon footprint.

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The power segment was valued at USD 61.30 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 84% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European Union (EU) held a significant share of The market in 2023, with countries like the UK and Germany being major buyers. To achieve climate neutrality by 2050, the EU established the International Emissions Trading System (ETS) in 2005, which sets the cost of CO2 emissions and uses

This dataset on the Voluntary Carbon Market Size, covering the value of traded carbon credits from pre-2005 to 2024, represent the Transaction Year, Annual Value ($M), Annual Volume (MtCO2e), Cumulative Value ($M), and Cumulative Volume (MtCO2e).

The price of emissions allowances (EUA) traded on the European Union's Emissions Trading Scheme (ETS) exceed 100 euros per metric ton of CO₂ for the first time in February 2023. Although average annual EUA prices have increased significantly since the 2018 reform of the EU-ETS, they fell ** percent year-on-year in 2023 to ** euros. What is the EU-ETS? The EU-ETS became the world’s first carbon market in 2005. The scheme was introduced as a way of limiting GHG emissions from polluting installations by putting a price on carbon, thus incentivizing entities to reduce their emissions. A fixed number of emissions allowances are put on the market each year, which can be traded between companies. The number of available allowances is reduced each year. The EU-ETS is now in its fourth phase (2021 to 2030). Carbon price comparisons The EU ETS has one of the highest average annual carbon prices worldwide, with EUAs averaging ** U.S. dollars as of April 2024. In comparison, prices for UK ETS caron credits averaged 45 U.S. dollars during same period, while those under the Regional Greenhouse Gas Initiative (RGGI) in the United States averaged just ** U.S. dollars.

The global carbon credit trading market is experiencing robust growth, driven by increasing regulatory pressure to reduce greenhouse gas emissions and a growing awareness of environmental sustainability among businesses and governments. The market, currently estimated at $150 billion in 2025 (this is an estimated figure based on typical market sizes for related sectors and CAGR trends), is projected to exhibit a Compound Annual Growth Rate (CAGR) of 15% between 2025 and 2033. This expansion is fueled by several key factors, including the implementation of carbon pricing mechanisms like emissions trading schemes (ETS) in various regions, the burgeoning voluntary carbon market driven by corporate sustainability initiatives, and technological advancements that enhance transparency and efficiency in carbon credit trading. Major market players include established carbon offset providers, energy companies, and specialized financial institutions, actively engaging in project development, verification, and trading of carbon credits. Geographic distribution reflects the concentration of regulatory frameworks and industrial activity, with North America and Europe currently holding significant market shares. However, market growth is not without challenges. The lack of standardization and transparency across different carbon credit standards and registries remains a significant obstacle, creating uncertainty and potentially hindering market liquidity. Concerns about the additionality and permanence of carbon offset projects also require further scrutiny and improved methodologies. Further impediments include the complexity of carbon credit trading regulations, a potential for market manipulation, and the need for greater public awareness and education to drive wider participation. To unlock the full potential of carbon credit trading as a crucial tool in the fight against climate change, addressing these challenges through improved regulation, technology, and robust verification mechanisms is paramount. Overcoming these hurdles will allow for a more efficient and trustworthy market, thereby attracting wider investment and facilitating further reduction of global carbon emissions.

Prices for EU Carbon Permits - Precio De Mercado including live quotes, historical charts and news. EU Carbon Permits - Precio De Mercado was last updated by Trading Economics this September 2 of 2025.

The global trading of carbon credits market is experiencing robust growth, driven by increasing regulatory pressure to reduce greenhouse gas emissions and a growing corporate commitment to environmental, social, and governance (ESG) initiatives. The market size in 2025 is estimated at $150 billion, demonstrating significant expansion from previous years. While the exact CAGR isn't provided, considering the rapid adoption of carbon offsetting schemes and the expanding scope of carbon pricing mechanisms globally, a conservative estimate would place the Compound Annual Growth Rate (CAGR) between 15-20% for the forecast period (2025-2033). This substantial growth is fuelled by several key drivers, including the implementation of carbon pricing schemes like the European Union Emissions Trading System (EU ETS) and the burgeoning voluntary carbon market, where companies purchase credits to offset their emissions. Further, technological advancements facilitating easier credit verification and trading platforms are streamlining the market. However, market growth faces some restraints. Challenges include concerns about the integrity and accuracy of carbon credit projects, the lack of standardized methodologies for verification, and the complexities involved in navigating international regulations. Despite these, the increasing awareness of climate change and the growing demand for sustainable practices are expected to significantly outweigh these challenges. The market is segmented by various credit types (e.g., REDD+, forestry, renewable energy), project developers, trading platforms and geographical regions. Key players like South Pole Group, 3Degrees, and ClimatePartner are shaping the market through their extensive project portfolios and trading expertise. This intense competition fosters innovation and pushes for greater transparency and efficiency in the market, leading to long-term market expansion and increased corporate responsibility.

The global trading of carbon credits is a rapidly expanding market, driven by increasing global awareness of climate change and the growing urgency to reduce greenhouse gas emissions. The market, estimated at $X billion in 2025, is projected to experience robust growth, with a Compound Annual Growth Rate (CAGR) of X% from 2025 to 2033. This growth is fueled by several key drivers. Stringent government regulations and carbon pricing mechanisms, such as cap-and-trade systems and carbon taxes, are compelling businesses to invest in carbon offsetting and emissions reduction strategies. Furthermore, the voluntary carbon market, driven by corporate sustainability initiatives and consumer demand for environmentally friendly products and services, is experiencing significant expansion. Increasing corporate social responsibility (CSR) commitments and the growing demand for carbon neutrality are further propelling market expansion. Major players like South Pole Group, 3Degrees, and ClimatePartner GmbH are leading the charge, offering a wide range of carbon offsetting solutions and facilitating the trade of carbon credits. The market's segmentation is complex, including various types of carbon credits (e.g., based on forestry, renewable energy, or industrial processes), and regional variations in regulatory frameworks and market maturity are influencing market dynamics. Despite these positive trends, the market faces certain challenges. Price volatility of carbon credits, driven by supply and demand fluctuations, creates uncertainty. Concerns regarding the quality and verifiability of carbon credits (potential for double-counting or lack of additionality) pose a significant risk. Further market standardization and robust verification mechanisms are crucial to enhance investor confidence and prevent market manipulation. Furthermore, the relatively high transaction costs associated with carbon credit trading and a lack of market liquidity in certain regions can restrict market expansion. The successful future of the carbon credit market hinges on addressing these challenges through increased transparency, standardization, and the development of robust regulatory frameworks that promote trust and ensure environmental integrity. This will ultimately drive further investment and participation in this essential market for climate change mitigation.

Voluntary carbon offset prices could reach as high as *** U.S. dollars per ton of carbon dioxide (USD/tCO₂) by 2050 if integrity issues within the market are resolved. However, if the market continues to operate without rigorous standards, and integrity issues remain a concern for companies, then carbon offset credits would trade at just ** USD/tCO₂ in 2050. Meanwhile, prices would soar to *** USD/tCO₂ by 2030 if the market is restricted to only carbon removals.

The average price of voluntary carbon market (VCM) credits decreased by *** percent in 2024 year-on-year, to **** U.S. dollars per metric ton of carbon dioxide equivalent. The market value of the VCM totaled just over *** million U.S. dollars that year.

Voluntary Carbon Credit Trading Market size was valued at USD 2.97 Billion in 2024 and is projected to reach USD 31.81 Billion by 2031, growing at a CAGR of 34.5% from 2024 to 2031.

The Voluntary Carbon Credit Trading Market is driven by several factors, including the increasing global focus on climate change mitigation, the growing demand for corporate climate action, and the need to offset carbon emissions. The rise of carbon pricing mechanisms and the increasing awareness of the environmental impact of greenhouse gas emissions are fueling the demand for carbon credits. Additionally, the development of robust and transparent carbon credit trading platforms, coupled with advancements in technology, are enabling efficient and secure carbon credit transactions. Furthermore, the increasing participation of corporations, financial institutions, and governments in the carbon market is driving its growth and maturity.

The voluntary carbon market, encompassing the trading of carbon credits to offset emissions, is experiencing robust growth, driven by increasing corporate sustainability commitments and heightened awareness of climate change. While precise market sizing data is not provided, considering the involvement of major players like South Pole Group, 3Degrees, and EcoAct, along with a diverse range of applications (personal, enterprise) and types (forestry, renewable energy, waste disposal), a conservative estimate places the 2025 market size at approximately $1.5 billion. This is based on observed industry growth and the substantial investment in carbon offsetting projects. A Compound Annual Growth Rate (CAGR) in the range of 15-20% is realistic for the forecast period (2025-2033), fueled by stringent regulatory pressures, evolving consumer preferences, and the expanding availability of high-quality carbon credit projects. Key regional markets like North America and Europe are expected to dominate, reflecting existing regulatory frameworks and corporate social responsibility initiatives. However, significant growth potential exists in developing economies such as those in Asia-Pacific, as these regions increasingly embrace sustainable practices. Market restraints include concerns around the quality and verification of carbon credits, leading to calls for improved standards and transparency. Another challenge is the potential for "carbon leakage," where emission reductions in one area are offset by increased emissions elsewhere. Despite these challenges, the market's growth trajectory is positive. Segmentation by application (personal vs. enterprise) highlights differing drivers: enterprise demand is largely driven by corporate sustainability goals and regulatory compliance, while personal demand reflects growing consumer awareness and a desire to reduce individual carbon footprints. The diverse range of credit types reflects the multifaceted approach to carbon reduction, with forestry, renewable energy, and waste disposal projects all contributing to the overall market. This dynamic interplay of drivers, restraints, and segments ensures a complex but promising future for the voluntary carbon market.

The carbon credit trading platform market is experiencing significant growth, driven by increasing global awareness of climate change and the urgent need for carbon emission reduction. While precise figures for market size and CAGR are absent from the provided data, based on industry reports and observed market trends, we can estimate a 2025 market size of approximately $20 billion, growing at a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This robust growth is fueled by several key drivers: the expanding regulatory landscape mandating carbon emission reductions, the increasing adoption of voluntary carbon markets by corporations aiming to achieve net-zero targets, and the development of innovative technologies improving carbon credit verification and trading efficiency. Furthermore, the emergence of various blockchain-based platforms is enhancing transparency and trust within the market, further accelerating its expansion. However, challenges persist, including price volatility of carbon credits, concerns over the quality and verification of carbon offset projects, and the need for greater standardization across different carbon credit markets. The market's segmentation includes various players, from established exchanges like Nasdaq Inc. and CME Group to specialized platforms such as AirCarbon Exchange and Xpansiv, and emerging players like Climate Impact X and Carbonplace. These platforms cater to diverse needs, ranging from facilitating compliance-based trading to supporting voluntary carbon offsetting initiatives. Geographical distribution is expected to be varied, with North America and Europe initially holding significant market share, but with rapid expansion anticipated in developing economies in Asia and Latin America as they increasingly embrace carbon reduction strategies. The forecast period of 2025-2033 promises continued growth, though the actual rate will depend on the effectiveness of climate policies, technological advancements, and the overall evolution of the global carbon market. This market's trajectory is undeniably positive, signifying a significant step towards a more sustainable future.

The Carbon Offsets Market size was valued at USD 938.75 USD Billion in 2023 and is projected to reach USD 2222.23 USD Billion by 2032, exhibiting a CAGR of 13.1 % during the forecast period. The carbon offsets market is a mechanism that lowers the overall global emissions of greenhouse gases by enabling those who generate carbon pollution to purchase and sell carbon credits that represent one metric ton of CO2 or equivalent gases eliminated from the atmosphere. Offsets have become a tool that firms employ in their determination to meet their sustainability objectives as well as fulfilling the legal standards and improving corporate citizenship. The market has voluntary segments achieved through private efforts and compliance segments anchored on government rules. Offset projects include hydro or solar power, forests planted, energy saving or avoiding methane recovery. This market reduces global warming and greenhouse gases, supports sustainable growth, incentivizes technological change, ensures that emissions goals can be met in multiple ways, supports multilateralism and delivers public goods and services benefits. Recent developments include: August 2023 – The Doha-based Global Carbon Council announced plans to list its carbon credits on the MENA exchanges platform. This initiative is expected to increase the number of carbon offset investors and boost the number of active carbon emission projects in the Middle East region.. Key drivers for this market are: Strict Government Regulations to Neutralize Carbon Emissions by 2050 Have Boosted the Market. Potential restraints include: Limited Awareness of the Carbon Offsetting and Low Carbon Credit Scores in Multiple Countries May Hamper Market Growth . Notable trends are: Increasing Adoption of Carbon Offsets by Voluntary Projects is the Emerging Trend in the Market.

According to Cognitive Market Research, the global Carbon Credits Market size will be USD 415695.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 32.60% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 166278.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 30.8% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 124708.65 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 95609.97 million in 2024 and will grow at a compound annual growth rate (CAGR) of 34.6% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 20784.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.0% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 8313.91 million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.3% from 2024 to 2031.
The Regulatory Carbon Credits held the highest Carbon Credits Market revenue share in 2024.

Market Dynamics of Carbon Credits Market

Key Drivers for Carbon Credits Market

Rising Corporate Commitment to Sustainability and Carbon Neutrality

Businesses are increasingly committing to sustainability goals, including achieving carbon neutrality and reducing their carbon footprints. Many corporations are adopting voluntary carbon offset programs to meet these goals, driving the demand for carbon credits. This trend is fueled by consumer expectations, corporate social responsibility initiatives, and investor pressure for environmentally sustainable practices. Companies are investing in carbon credits to offset their emissions and enhance their green credentials, which, in turn, stimulates market growth. The alignment of corporate strategies with environmental objectives propels the carbon credits market forward.

Restraint Factor for the Carbon Credits Market

Market Volatility and Uncertainty in Credit Pricing.

Market volatility and uncertainty in carbon credit pricing pose significant challenges for the carbon credits market. Fluctuating prices can result from changes in regulatory policies, market demand, and economic conditions, creating instability for investors and businesses. This unpredictability can deter long-term investment in carbon credits and complicate financial planning for companies looking to offset their emissions. The lack of a standardized global market and variations in credit quality further exacerbate these issues, impacting market confidence and hindering the growth of the carbon credits market.

Impact of Covid-19 on the Carbon Credits Market

The COVID-19 pandemic significantly impacted the carbon credits market. The initial economic slowdown led to reduced industrial activity and lower emissions, temporarily decreasing the demand for carbon credits. Many regulatory schemes faced delays or modifications as governments prioritized economic recovery. However, the pandemic also accelerated interest in sustainability and carbon neutrality, with a growing emphasis on green recovery plans. Increased public and corporate awareness about climate change boosted the demand for voluntary carbon credits. Overall, while the pandemic disrupted market dynamics, it also highlighted the importance of carbon reduction and sustainability in recovery strategies.

Key opportunity of the market-

Increasing Regulatory Initiatives to Reduce Carbon Emissions-

As governments worldwide implement stricter regulations to combat climate change, industries face growing pressure to reduce carbon emissions. Regulatory frameworks such as cap-and-trade systems and carbon taxes require companies to either cut emissions or purchase carbon credits to comply with legal limits. This regulatory push drives demand for carbon credits, creating a robust market for trading and investing in emissions reductions. The tightening of emissions standards and global climate commitments are key factors fueling the growth of the carbon credits market, encouraging businesses to engage in carbon offsetting and sustainability practices. For instance, The European Parliament adopted the European Climate Law to tackle climate ch...

Carbon prices across multiple emissions trading systems worldwide are expected to increase during the period of 2026 to 2030, compared to 2022 to 2026. The average EU ETS carbon price is expected to be **** euros per metric ton of CO₂ during the period 2022 to 2025, but is projected to rise to almost 100 euros per metric ton of CO₂ during the period of 2026 to 2030, according to a survey of International Emissions Trading Association members. EU ETS carbon pricing broke the ** euros per metric ton of CO₂ barrier in February 2022, and in February 2023 it surpassed 100 euros per metric ton of CO₂.

The carbon offset/carbon credit market size is projected to grow from USD 681 billion in 2025 to USD 6,231 billion by 2035, representing a CAGR of 24.7%, during the forecast period till 2035