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.

EU Carbon Permits fell to 82.64 EUR on December 1, 2025, down 0.74% from the previous day. Over the past month, EU Carbon Permits's price has risen 1.77%, and is up 20.06% 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.

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 2024 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, averaging ** U.S. dollars as of April 2025. In comparison, prices for UK ETS carbon credits averaged 57 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 cost of UK ETS carbon permits (UKAs) was around *** GBP in February 2023, but prices have fallen considerably since then. Prices on January 16, 2025 were just ***** GBP, down ** 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 ** 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.

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

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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

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.

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.

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 global carbon credit trading platform market is experiencing robust growth, projected to reach $106.3 million in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 12.5% from 2025 to 2033. This expansion is fueled by increasing corporate commitments to net-zero emissions targets, strengthened regulatory frameworks mandating carbon reduction, and growing awareness of climate change amongst consumers and investors. The market's dynamic nature is shaped by several key drivers. Technological advancements are enhancing the efficiency and transparency of carbon credit trading, making the process more accessible to a wider range of participants. Furthermore, the emergence of innovative blockchain-based platforms is improving traceability and security within the carbon credit ecosystem. However, the market also faces challenges, including standardization issues related to carbon credit methodologies and the potential for fraud and double-counting. The development of robust verification and certification processes is crucial for building market confidence and attracting further investment. Segment-wise, while precise segment breakdown isn't provided, we can infer significant growth in segments focusing on voluntary carbon markets (driven by corporate ESG initiatives) and compliance carbon markets (governed by regulatory mandates). The competitive landscape is characterized by a mix of established players like Nasdaq Inc. and CME Group, along with innovative startups like AirCarbon Exchange and Toucan. These companies are actively developing sophisticated platforms offering a range of services, from trading and registry functionalities to carbon project development and verification. The increasing geographical diversification of the market indicates strong regional growth opportunities. While specific regional data is unavailable, we can expect significant contributions from North America and Europe, given their advanced regulatory frameworks and robust corporate sustainability agendas. The ongoing evolution of international carbon pricing mechanisms and growing involvement of governments and international organizations will significantly influence market growth in the forecast period. The market's future trajectory relies heavily on addressing current challenges, strengthening regulatory clarity, and enhancing market transparency to ensure its continued expansion and effectiveness in mitigating climate change.

Global Carbon Credit Market valued at USD 1,258.4 Mn in 2025, is anticipated to reaching USD 13,583.1 Mn by 2032, with a steady annual growth rate of 40.4%

The global market for carbon credit trading is poised for remarkable expansion, with a current market size of approximately 1803 million and an impressive Compound Annual Growth Rate (CAGR) of 21% projected through 2033. This robust growth is propelled by a confluence of escalating environmental consciousness, stringent regulatory frameworks, and the increasing adoption of corporate sustainability initiatives. Businesses worldwide are actively seeking avenues to offset their carbon emissions, driving demand for verified carbon credits. Key applications span both personal and enterprise sectors, with significant contributions from forestry, renewable energy, and landfill methane projects, all of which are pivotal in achieving global decarbonization goals. The evolving landscape of carbon markets, from voluntary to compliance-driven mechanisms, further fuels this expansion. The dynamic growth in carbon credit trading is significantly influenced by several key drivers. The imperative to meet Nationally Determined Contributions (NDCs) under the Paris Agreement, coupled with burgeoning investor interest in Environmental, Social, and Governance (ESG) principles, are primary catalysts. Innovations in carbon accounting and verification technologies are enhancing market transparency and trust, thereby attracting more participants. Emerging trends such as nature-based solutions, blue carbon initiatives, and the integration of carbon pricing mechanisms into broader economic policies are shaping the market's trajectory. While the market enjoys strong tailwinds, potential restraints such as price volatility, regulatory uncertainties in certain regions, and the need for standardized methodologies for carbon sequestration projects present challenges that market participants and policymakers are actively addressing to ensure sustained and equitable growth in the carbon credit trading landscape.

China launched its national emissions trading system (ETS) in 2021, becoming the world's largest carbon market by emissions coverage. As of April 2025, carbon prices of China's national ETS hovered around ** 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.

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.

Current spot price plus 1-month and 1-year forecasts for Carbon Credits as published on ChAI Predict.

The dataset contains information related to carbon emissions, budgeting for carbon neutrality, and carbon credits. It includes the following columns: Carbon Emissions (kg CO2): The total carbon emissions in kilograms of CO2. Budget Needed (INR): The budget required to neutralize the carbon emissions, measured in Indian Rupees (INR). Carbon Credits Price (INR): The price per carbon credit in Indian Rupees. Carbon Credits Required: The number of carbon credits needed to offset the emissions. Each row represents a different scenario, with specific values for emissions, required budget, and carbon credits necessary for achieving carbon neutrality. ​

This dataset contains the predicted prices of the asset Moss Carbon Credit over the next 16 years. This data is calculated initially using a default 5 percent annual growth rate, and after page load, it features a sliding scale component where the user can then further adjust the growth rate to their own positive or negative projections. The maximum positive adjustable growth rate is 100 percent, and the minimum adjustable growth rate is -100 percent.

Voluntary carbon credit market size is estimated to grow from USD 1.1 billion in 2024 to USD 1.6 billion in 2025 and USD 47.5 billion by 2035, at a CAGR of 40%

This study aims to investigate the price changes in the carbon trading market and the development of international carbon credits in-depth. To achieve this goal, operational principles of the international carbon credit financing mechanism are considered, and time series models were employed to forecast carbon trading prices. Specifically, an ARIMA(1,1,1)-GARCH(1,1) model, which combines the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) and Autoregressive Integrated Moving Average (ARIMA) models, is established. Additionally, a multivariate dynamic regression Autoregressive Integrated Moving Average with Exogenous Inputs (ARIMAX) model is utilized. In tandem with the modeling, a data index system is developed, encompassing various factors that influence carbon market trading prices. The random forest algorithm is then applied for feature selection, effectively identifying features with high scores and eliminating low-score features. The research findings reveal that the ARIMAX Least Absolute Shrinkage and Selection Operator (LASSO) model exhibits high forecasting accuracy for time series data. The model’s Mean Squared Error, Root Mean Squared Error, and Mean Absolute Error are reported as 0.022, 0.1344, and 0.1543, respectively, approaching zero and surpassing other evaluation models in predictive accuracy. The goodness of fit for the national carbon market price forecasting model is calculated as 0.9567, indicating that the selected features strongly explain the trading prices of the carbon emission rights market. This study introduces innovation by conducting a comprehensive analysis of multi-dimensional data and leveraging the random forest model to explore non-linear relationships among data. This approach offers a novel solution for investigating the complex relationship between the carbon market and the carbon credit financing mechanism.

Annual Voluntary Carbon Market Transaction Price (USD), by Buyer Type, by Credit Vintage Status, 2021 until 2024