As of April 2024, the European Union Emission Trading Scheme (EU ETS) carbon price was above 60 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 2024, the price of carbon on the UK ETS was 45 USD/tCO₂e.

EU Carbon Permits decreased 2.17 EUR or 2.97% since the beginning of 2025, 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.

Voluntary carbon offset prices could reach as high as 238 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 14 USD/tCO₂ in 2050. Meanwhile, prices would soar to 146 USD/tCO₂ by 2030 if the market is restricted to only carbon removals.

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 n February 2023. Athough average annual EUA prices have increased significantly since the 2018 reform of the EU-ETS, they fell 19 percent year-on-year in 2023 to 65 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). Volatility of carbon prices EU carbon prices are volatile and change daily. Prices are determined by the supply and demand of allowances. In March 2022, the outbreak of the Russia-Ukraine war caused EUA prices to crash to less than 60 euros/tCO₂ due to the expected ban on Russian energy imports in Europe.

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 March 26 of 2025.

The cost of UK ETS carbon permits (UKAs) was around 100 GBP in February 2023, but prices have fallen considerably since then. Prices on January 16, 2025 were just 32.57 GBP, down 11 percent from the same date the previous year. Formerly part of the EU ETS, the UK launched its own cap-and-trade system in 2021 following Brexit. Why has the UK’s carbon price fallen? Several factors have contributed to falling UK carbon prices, including mild winter weather and reduced power demand, as well as a surplus of carbon allowances on the market. While prices have recovered marginally from the record lows, they remain markedly below carbon prices on the EU ETS. The low cost of UK carbon permits has raised concerns that it could deter investment in renewable energy. Future of UK ETS The UK ETS covers emissions from domestic aviation and the industry and power sectors, amounting to some 30 percent of the country’s annual GHG emissions. There are plans to expand the system over the coming years to cover CO₂ venting by the upstream oil and gas sector, domestic maritime emissions, and energy from waste and waste incineration. The UK is also looking to introduce a carbon border adjustment mechanism, which would place a carbon price on certain emissions-intensive industrial goods imported to the UK.

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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

The size of the Compliance Carbon Credit Market was valued at USD 0.82 Million in 2023 and is projected to reach USD 2.16 Million by 2032, with an expected CAGR of 14.81% during the forecast period. The compliance carbon credit market is essential in the global initiative to mitigate greenhouse gas emissions, offering a structured approach for companies and nations to fulfill their regulatory requirements under climate policies. This market functions within cap-and-trade frameworks or carbon pricing systems established by governmental bodies and international accords, including the Paris Agreement. Entities that are subject to emission restrictions must either curtail their emissions or acquire carbon credits to offset any excess emissions. These credits signify verified reductions in greenhouse gases achieved through various projects, such as renewable energy developments, reforestation efforts, or methane capture technologies. The compliance carbon credit market has experienced substantial growth as an increasing number of regions adopt obligatory carbon pricing. Notable examples include the European Union Emissions Trading System (EU ETS) and California’s Cap-and-Trade Program, where industries are mandated to purchase credits to adhere to emission limits. This market creates a financial incentive for businesses to invest in cleaner technologies and practices, thereby encouraging innovation and contributing to a reduction in overall emissions. Nevertheless, the market encounters challenges, including the need for credible verification of carbon credits, the prevention of market manipulation, and the management of price fluctuations in carbon credits. Despite these challenges, the compliance carbon credit market continues to be a vital tool for achieving global climate objectives and advancing sustainable development. Recent developments include: April 2024: Regional efforts in the Western United States and Canada are gaining momentum as the urgency of combating climate change increases. Plans to link their carbon markets are being drawn up in California, Quebec, and Washington, which could significantly affect trading dynamics. The three authorities intend to work together to create a more extensive carbon credit market as soon as their proposed alliance takes effect., January 2024: The Commodity Futures Trading Commission (CFTC) issued proposed guidance on the listing of voluntary carbon credit (VCC) derivatives contracts on designated contract markets for the public to comment on the proposal.. Key drivers for this market are: Regulatory Mandates and Policies, Growing Corporate Sustainability Initiatives. Potential restraints include: Market Complexity and Uncertainty. Notable trends are: Charting the Course of Carbon Pricing: UK-ETS Post-Brexit.

The average price of voluntary carbon market (VCM) credits decreased by 11 percent in 2023, to 6.53 U.S. dollars per metric ton of carbon dioxide equivalent. The market value of the VCM totaled just over 700 million U.S. dollars that year.

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 84.4 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 90 euros per metric ton of CO₂ barrier in February 2022, and in February 2023 it surpassed 100 euros per metric ton of CO₂.

Explore the Carbon Credit Trading Platform Market trends! Covers key players, growth rate 23.2% CAGR, market size $0.49 Billion, and forecasts to 2033. Get insights now!

Explore the Carbon Credit For Agriculture, Forestry, And Land Use Market trends! Covers key players, growth rate 28.9% CAGR, market size $20.79 Billion, and forecasts to 2033. Get insights now!

The carbon credit trading platform market is projected to be worth US$ 159.3 million in 2024. The market is anticipated to reach US$ 815.0 million by 2034. The market is further expected to surge at a CAGR of 17.7% during the forecast period 2024 to 2034.

Attributes	Key Insights
Carbon Credit Trading Platform Market Estimated Size in 2024	US$ 159.3 million
Projected Market Value in 2034	US$ 815.0 million
Value-based CAGR from 2024 to 2034	17.7%

Country-wise Insights

Countries	Forecast CAGRs from 2024 to 2034
The United States	18.1%
The United Kingdom	19.3%
Japan	18.7%
China	18.4%
Korea	19.5%

Category-wise Insights

Category	CAGR from 2024 to 2034
Voluntary	17.4%
Cap and Trade	17.1%

Report Scope

Attribute	Details
Estimated Market Size in 2024	US$ 159.3 Million
Projected Market Valuation in 2034	US$ 815.0 Million
Value-based CAGR 2024 to 2034	17.7%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	Value in US$ Million
Key Regions Covered	North America Latin America Western Europe Eastern Europe South Asia and Pacific East Asia The Middle East & Africa
Key Market Segments Covered	Type System Type End Use Region
Key Countries Profiled	The United States Canada Brazil Mexico Germany France France Spain Italy Russia Poland Czech Republic Romania India Bangladesh Australia New Zealand China Japan South Korea GCC countries South Africa Israel
Key Companies Profiled	Nasdaq Inc. Climate Impact X CME Group Inc. Carbon Trade Exchange European Energy Exchange AG Xpansiv Data Systems Inc. Carbonplace Likvidi Technologies Ltd. BetaCarbon Pty Ltd. Carbonex Ltd.

China launched its national emissions trading system (ETS) in 2021, becoming the world's largest carbon market by emissions coverage. As of April 2024, carbon prices of China's national ETS hovered around 12.5 USD/tCO₂e. The China national ETS builds on the seven pilot projects that have been implemented in seven cities and provinces across the country. These pilot ETS will continue to operate alongside the national ETS, covering emissions not yet included in the national system.

Reducing Emissions from Deforestation and forest Degradation (REDD+) voluntary carbon credit prices fell by 23 percent year-over-year in 2023, to 7.87 U.S. dollars per metric ton of carbon dioxide equivalent. Forestry and land use credits are the most common on the voluntary carbon market, with REDD+ accounting for the majority of carbon credit issuances within this category.

Download real-time and historical ICE EUA and UKA futures data via browser or API. Manage the price risk of emission allowances and carbon credits.

Our continuous contract symbology is a notation that maps to an actual, tradable instrument on any given date. The prices returned are real, unadjusted prices. We do not create a synthetic time series by adjusting the prices to remove jumps during rollovers.

Historical price and volatility data for Carbon Credit in Euro across different time periods.

This statistic represents the value of the global carbon market between 2013 and 2016. In 2016, the carbon market, where CO2 emission certificates like EU allowances and UN certificates are traded, is forecast to reach a value of around 60 billion euros.

Carbon emissions trading by companies

There are various types of emission policies that aim to curb greenhouse gas emissions. The carbon emissions trading or cap and trade, which generally targets carbon dioxide (CO2), is one of the most common methods used around the world. The global carbon market has reached some 48.3 billion euros by 2015. Carbon trading allows a company or country with higher emissions to purchase permits to emit more, while others with lower emissions can trade their emission permits. Over the last few years, the cost of permits have risen which have increased the cost of activities that are greenhouse gas emission-intensive.

In 2010, E.on, a German electric utility company, was one of the largest buyers of UN-certified carbon credits in Europe, totaling some 3.5 million metric tons of carbon dioxide. E.on is one of the largest electric utilities in the world and has a market value of 30.3 billion U.S. dollars as of April 2015. In 2010, some of the other largest carbon credit buyers were mostly companies that operated coal plants or produced steel and iron ore. The coal sector is one of the largest emitters of carbon dioxide. Globally, it released 15.5 billion metric tons in 2015, whereas the natural gas sector released some 6.6 billion metric tons. The carbon offset sales of renewable energy from U.S.-based sources reached 591,800 megawatt hour equivalents in 2010.

Historical price and volatility data for Carbon Credit in Chinese Yuan Renminbi across different time periods.

Historical price and volatility data for Carbon Credit in Chinese Yuan Renminbi across different time periods.