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 rose to 70.58 EUR on July 1, 2025, up 2.33% from the previous day. Over the past month, EU Carbon Permits's price has fallen 0.47%, and is down 0.49% 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.

Prices for EU Carbon Permits including live quotes, historical charts and news. EU Carbon Permits was last updated by Trading Economics this July 1 of 2025.

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.

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.

This paper studies the heterogeneous effects of exchange rate and stock market on carbon emission allowance price in four emissions trading scheme pilots in China. We employ a panel quantile regression model, which can describe both individual and distributional heterogeneity. The empirical results illustrate that the effects of explanatory variables on carbon emission allowance price is heterogeneous along the whole quantiles. Specifically, exchange rate has a negative effect on carbon emission allowance price at lower quantiles, while becomes a positive effect at higher quantiles. In addition, a negative effect exists between domestic stock market and carbon emission allowance price, and the intensity decreasing along with the increase of quantile. By contrast, an increasing positive effect is discovered between European stock market and domestic carbon emission allowance prices. Finally, heterogeneous effects on carbon emission allowance price can also be proved in European Union Emission Trading Scheme (EU-ETS).

This dataset provides values for CO2 EMISSIONS reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The emission rights trading volume on the EEX spot market in Germany amounted to 922 million tons in 2023. The timeline shows spot and futures market figures from 2005 to 2023. The European Energy Exchange AG (EEX) is located in Leipzig in Germany and trades in electric power, as well as commodities related to that. Emissions trading refers to establishing a market price for CO2 through trading the right to a certain amount of greenhouse gas emissions.

The global carbon tax market is experiencing robust growth, driven by increasing government regulations aimed at mitigating climate change and the rising awareness of environmental sustainability. While precise market size data for 2025 is not provided, considering a plausible CAGR of 10% (a reasonable estimate based on current market trends and governmental initiatives) and assuming a 2019 market size of $50 billion USD, the market size in 2025 could be estimated at approximately $80 billion USD. This growth trajectory is expected to continue through 2033, with the market driven by factors such as increasing carbon emissions from various sectors, the implementation of stricter environmental regulations (e.g., the EU Emissions Trading System), and growing investor interest in sustainable investments. The market's segmentation, encompassing diverse carbon sources (CO2, methane, nitrous oxide, and others) and applications (industrial, transportation, agriculture, residential), presents significant opportunities for businesses involved in carbon emission reduction and carbon credit trading. Further fueling this expansion is the growing adoption of carbon pricing mechanisms by governments worldwide, though the pace of adoption varies across regions.
The key restraining factors include the high implementation costs associated with carbon taxes, potential negative impacts on economic competitiveness, and the challenges in accurately measuring and monitoring carbon emissions across different sectors and geographical locations. However, technological advancements in emission monitoring and carbon capture, utilization, and storage (CCUS) technologies, coupled with continued governmental support and international cooperation, are expected to mitigate these challenges and propel further market growth in the forecast period (2025-2033). The involvement of prominent tax authorities like the IRS, Canada Revenue Agency, and others, underscores the global nature of this market and the critical role of governmental frameworks in its development. The diverse regional landscape, with North America, Europe, and Asia-Pacific representing key markets, highlights the global importance of effective carbon pricing strategies for achieving environmental sustainability goals.

In the fourth quarter of 2023, the price of the carbon dioxide in the United States reached 666 USD/MT by December. Similarly, in Japan, the carbon dioxide prices hit 249 USD/MT in the same month. Moreover, Belgium also witnessed carbon dioxide prices reaching 214 USD/MT during Q4 2023.

Explore IMARC's latest publication, “Carbon Dioxide Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” presents a detailed examination of the carbon dioxide market, providing insights into both global and regional trends that are shaping prices. This report delves into the spot price of carbon dioxide at major ports and analyzes the composition of prices, including FOB and CIF terms. It also presents a detailed carbon dioxide price trend analysis by region, covering North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The factors affecting carbon dioxide pricing, such as the dynamics of supply and demand, geopolitical influences, and sector-specific developments, are thoroughly explored. This comprehensive report helps stakeholders stay informed with the latest market news, regulatory updates, and technological progress, facilitating informed strategic decision-making and forecasting.

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Carbon Dioxide Removal Market Size 2024-2028

The carbon dioxide removal market size is forecast to increase by USD 21.25 billion, at a CAGR of 26.73% between 2023 and 2028.

The Carbon Dioxide Removal (CDR) market is experiencing significant growth due to increasing investments in direct air capture technology. This technology, which absorbs CO2 directly from the atmosphere, is gaining traction as a promising solution for reducing greenhouse gas emissions. However, the market's growth is not without challenges. One of the primary obstacles is the permanence of carbon storage solutions. Despite advancements in carbon capture and storage (CCS) technology, ensuring the long-term stability of stored CO2 remains a concern. As the demand for CDR technologies continues to rise, companies must address this challenge to build trust and confidence in their offerings.
Additionally, the market faces regulatory hurdles and high implementation costs, which may limit its growth potential. To capitalize on market opportunities and navigate challenges effectively, companies must focus on developing robust carbon storage solutions and collaborating with governments and industry partners to address regulatory and financial barriers.

What will be the Size of the Carbon Dioxide Removal Market during the forecast period?

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The market continues to evolve, driven by the pressing need for climate change mitigation and the increasing demand for net zero emissions. The market encompasses a range of applications, from carbon mineralization and co2 utilization to carbon capture plants and negative emissions technologies. These solutions are integrated into various sectors, including renewable energy and clean technology, to enhance their carbon footprint reduction capabilities. Carbon capture feasibility and cost remain key considerations in the deployment of carbon capture systems. Co2 capture membranes and sorbents play crucial roles in this process, with ongoing research and development efforts aimed at improving their efficiency and reducing costs.

The carbon capture equipment market is expanding, with an increasing number of co2 capture plants coming online. Carbon pricing and emissions trading schemes are also shaping the market, providing financial incentives for carbon capture deployment. The use of carbon removal credits is gaining traction as a means of offsetting emissions and achieving carbon neutrality. The ongoing unfolding of market activities reveals a dynamic and complex landscape, with continued innovation and collaboration required to effectively address the challenges of climate change. Greenhouse gas removal technologies, including direct air capture and carbon sequestration, are essential components of the market.

These solutions offer promising opportunities for co2 utilization and storage, contributing to the development of a circular carbon economy. The integration of negative emissions technologies into industrial processes, such as enhanced oil recovery, is another area of focus, with potential for significant emissions reductions. The carbon capture market is characterized by its continuous evolution, with new developments and trends emerging regularly. The market's ongoing dynamism reflects the urgent need for effective climate change solutions and the potential for innovative technologies to make a significant impact on reducing greenhouse gas emissions.

How is this Carbon Dioxide Removal Industry segmented?

The carbon dioxide removal industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Technology

  DAC
  CCS
  Bioenergy with CCS
  Soil carbon sequestration
  Others


Application

  Industrial
  Agricultural
  Energy production


End-User

  Corporations
  Governments
  Carbon Credit Markets


Deployment Type

  Land-Based
  Ocean-Based


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Netherlands
    UK


  Middle East and Africa

    South Africa
    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Technology Insights

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

Carbon dioxide removal (CDR) markets have witnessed notable growth with the increasing emphasis on climate change mitigation and net zero emissions. One prominent CDR method is Direct Air Capture (DAC), which can be deployed at various scales, from small facilities to large industrial plants. This flexibility makes it an attractive solution for diverse locations, enabling seamless integration into existing infrastructures. DAC's geological storage capability allows for permanent

In Q1 2025, liquid carbon dioxide (CO2) prices in North America exhibited a steady downward trend, largely influenced by declining natural gas prices, a key feedstock in CO2 production. Warmer-than-expected weather forecasts across the U.S. and Europe weakened natural gas demand, reducing production costs and pushing CO2 prices lower through January and March. Despite stable production rates, market sentiment remained muted as inventory data and energy fluctuations limited price recovery.

The Carbon Dioxide Emission Quota market is experiencing robust growth, driven by increasing global awareness of climate change and the urgent need to reduce greenhouse gas emissions. Stringent government regulations, coupled with corporate sustainability initiatives and growing consumer demand for environmentally friendly products and services, are key factors fueling market expansion. The market's segmentation reveals a diverse landscape, with the enterprise sector exhibiting significant growth potential due to the substantial carbon footprints of large-scale operations. Within application types, renewable energy projects are a major driver, as companies seek to offset their emissions and comply with carbon neutrality targets. While the personal segment contributes, its growth is comparatively slower than the enterprise segment. The geographical distribution shows North America and Europe as dominant regions, benefiting from established regulatory frameworks and robust environmental consciousness. However, Asia-Pacific presents a considerable growth opportunity due to rapidly industrializing economies and increasing government focus on emissions reduction policies. Challenges such as the complexities of carbon credit trading and the potential for market volatility remain, but overall the market outlook is positive, projecting a substantial expansion over the forecast period. The market's growth is further propelled by advancements in carbon capture and storage technologies, improved methodologies for measuring and verifying emissions, and the increasing availability of carbon offset projects. While restraints such as high initial investment costs for emission reduction technologies and potential market manipulation through fraudulent carbon credits exist, technological innovation and stricter regulatory enforcement are mitigating these challenges. The competitive landscape is characterized by a mix of established players and emerging companies, ranging from large multinational corporations to specialized carbon offset providers and consulting firms. This competition stimulates innovation and drives down costs, making carbon offsetting more accessible to a broader range of businesses and individuals. Long-term growth hinges on sustained policy support, technological breakthroughs, and continued consumer and corporate commitment to environmental sustainability. The projected Compound Annual Growth Rate (CAGR) suggests a significant expansion of the market throughout the forecast period, indicating a positive outlook for continued investment and development in the carbon dioxide emission quota sector.

As per Cognitive Market Research's latest published report, the Global Liquid Carbon Dioxide market size will be $2,071.22 Million by 2028.Liquid Carbon Dioxide Industry's Compound Annual Growth Rate will be 4.82% from 2023 to 2030.

The North America Liquid Carbon Dioxide market size will be USD 780.64 Million by 2028.

Factors Affecting Liquid Carbon Dioxide Market Growth

Rising demand for food & beverages industry

The food and beverage industry has a unique role in expanding economic opportunity because it is universal to human life and health. This industry operates various segments where billions of people grow, transform, and sell food, particularly in developing countries where agriculture dominates all other economic sectors. The global food & beverage industry has seen rapid growth over the last ten years and this is expected to continue. The global food and beverage industry is growing at around 5% a year and global expenditure on food products by consumers is expected to reach US$20 trillion by 2030.

Following graph shows the global revenue in the food & beverages industry which is projected to reach US $258,741 million in 2021.

Asia Pacific is the fastest growing region for the food & beverage industry due to rapid increasing population. India is forecast to have the strongest annual growth of food & beverage sales between 2017 and 2020, with 13.1%. Average annual growth in China reached to 11.2% over the last four years. Indonesia and the Philippines both countries expected to see a strong acceleration in growth, with forecasts of 10.1% and 9.6% respectively. After Asia Pacific region second most growing region for the food & beverage industry is Middle East & Africa, which is followed by the America.

Moreover, healthy food development has become a relentless pattern, due to enormous part to a more prominent social attention to sustenance. The move towards more advantageous foods has been driven by shopper request, and when all is said in done the business has rushed to react, with numerous brands reformulating or re promoting their merchandise. Liquid carbon dioxide is widely used in the preservation of food, in fire extinguishers, and in commercial food processes. For food preservation, liquid carbon dioxide is used to refrigerate, preserve, store and soften.

Hence, rising demand for food & beverages industry boost the demand of liquid Co2 market.

The Restraining Factor of Liquid Carbon Dioxide

High Costs of Production and Transportation:

The production of liquid carbon dioxide is energy-intensive, requiring low-temperature liquefaction processes and high-purity feedstocks, which raise operational costs. Additionally, because liquid CO? must be stored at very low temperatures and under pressure, its transportation demands specialized cryogenic tanks and insulated pipelines. These storage and logistical requirements not only elevate capital and maintenance costs but also limit distribution over long distances, especially in underdeveloped regions lacking proper infrastructure. This cost barrier can deter small- and medium-scale end-users from adopting liquid CO?, limiting market growth.

Environmental and Regulatory Pressures:

Although liquid CO? is often a byproduct of industrial processes (such as ammonia or ethanol production), it is still classified as a greenhouse gas. Increasing global efforts to reduce carbon emissions have prompted tighter environmental regulations, which could restrict the availability of CO? from certain sources or impose additional compliance costs. Furthermore, evolving climate change policies and the push for carbon-neutral or carbon-negative technologies may shift focus away from conventional CO? utilization and toward carbon capture and storage (CCS) or alternative green technologies. This regulatory uncertainty could hinder long-term investment and slow market expansion.

Opportunities for Liquid Carbon Dioxide Market

Growing Demand in the Food and Beverage Industry:

Liquid carbon dioxide is widely used in the food and beverage sector for applications such as carbonation of soft drinks, preservation, chilling, freezing, and packaging under modified atmospheres. With the global increase in consumption of ready-to-eat and frozen foods, particularly in emerging markets like Asia-Pacific and Latin America, the demand for liquid CO? is expected to surge. Additionally...

After two years of decline, the U.S. carbon dioxide market increased by 8.7% to $1.2B in 2024. In general, consumption, however, saw a buoyant expansion. Over the period under review, the market hit record highs at $1.5B in 2021; however, from 2022 to 2024, consumption failed to regain momentum.

European Union Emissions Trading System (EU-ETS) carbon allowances are estimated to average ** euros per metric ton of carbon dioxide (tCO₂e) in 2024. This figure is forecast to more than double by the end of the decade to roughly *** euros/tCO₂e, before reaching nearly *** euros/tCO₂e by 2035. EU-ETS carbon prices surpassed the 100 euros per metric ton threshold for the first time in February 2023.

CO2-enhanced oil recovery (EOR) can have less GHG emissions compared to conventional oil production methods. The economy of CO2-EOR can significantly benefit from the recent rise of carbon prices in carbon markets due to its greenhouse gas (GHG) emission savings. This study conducted a life cycle assessment (LCA) of CO2-EOR in major hydrocarbon provinces of the world. Estimated net GHG emissions of CO2-EOR were compared with GHG emissions of average produced oil in the given country. When sourcing CO2 from coal-fired power plants, Kazakhstan and China have net GHG emissions of CO2-EOR of 276 and 380 kg CO2 eq/bbl, respectively, which are lower than the GHG emission factor of average oil produced in each of them. Significantly lower GHG emissions of CO2-EOR are observed in other hydrocarbon provinces (Iraq, Saudi Arabia, Kuwait, etc.), where CO2 could be delivered from Natural Gas Combined Cycle (NGCC) power plants. However, the cost of CO2 capture is higher at NGCC power plants than at coal-fired power plants. Further, we developed a techno-economic assessment (TEA) model of the CO2-EOR and integrated it with LCA to thoroughly consider carbon credits in its economy. The model was built based upon previous investigations and used statistics from a large industrial data set of CO2-EOR to produce accurate estimates of the CO2-EOR economy. The technical model iteratively estimated the balance of three fluids (crude oil, CO2, and water) in the CO2-EOR system with a 25 year operational lifespan and obtained actual data for the LCA and TEA models. The model was simulated for the Kazakhstan case with its oil market conditions for a demonstration purpose. TEA results showed that, with the available low-cost CO2 capture source or high CO2 cost in carbon trading, CO2-EOR can compete with current upstream projects in Kazakhstan by simultaneously increasing oil production and reducing GHG emissions.

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Carbon Dioxide Market Size 2025-2029

The carbon dioxide market size is forecast to increase by USD 2.36 billion at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth due to increasing demand in various industries, particularly in oil and gas for enhanced oil recovery and in the production of industrial gases such as urea and methanol. The trend towards reducing greenhouse gas emissions is driving research and development in carbon capture and storage (CCS) technologies, including carbon dioxide capture from natural gas and ethyl alcohol, as well as carbon dioxide utilization through gasification and hydrogen production. However, the high manufacturing cost of industrial CO2 remains a challenge. Advanced CO2 sensors, compressed natural gas, liquid nitrogen, and bottled air are also key components of the market.
Carbon dioxide is used in medical applications such as endoscopy, and the production of precipitated calcium carbonate. The market is expected to grow due to government initiatives and increasing awareness of the importance of reducing carbon emissions. Key applications include oil and gas, food and beverage, and chemical industries.

What will be the Size of the Carbon Dioxide Market During the Forecast Period?

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The market encompasses the production, sale, and application of CO2 gas in various industries. Key drivers for this market include the increasing demand for CO2 in industrial processes such as insufflation for medical procedures like laparoscopy, endoscopy, and arthroscopy, as well as its use in carbonation for beverages and in the production of ethyl alcohol through alcoholic fermentation. Additionally, CO2 is utilized in hydrogen production and cryogenic freezing. In the healthcare sector, CO2 is used for carboxytherapy to improve skin circulation, oxygenation, and wound healing. The oil & gas industry also remains a significant consumer of CO2, using it for enhanced oil recovery and as a byproduct of natural gas processing. The market, driven by the growing concern over global climate change, presents both opportunities and challenges for the CO2 market. 

How is this Carbon Dioxide Industry segmented and which is the largest segment?

The industry 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.

Technology

  Combustion
  Biological


Application

  Enhanced oil recovery
  Food and beverages
  Precipitated calcium carbonate
  Others


Source

  Ethyl alcohol
  Hydrogen
  Substitute natural gas
  Ethylene oxide
  Others


Geography

  APAC

    China
    India
    Japan
    South Korea


  North America

    Canada
    US


  Europe

    Germany
    UK
    France


  Middle East and Africa



  South America

By Technology Insights

The combustion segment is estimated to witness significant growth during the forecast period. The market is driven by the combustion segment due to its extensive use as a byproduct in various industries. Carbon dioxide (CO2) is formed when a fuel, such as natural gas, oil, or biomass, undergoes combustion with oxygen. This process releases CO2 as an exhaust gas, contributing significantly to global carbon emissions and greenhouse gas emissions, which are major contributors to global climate change. In the medical field, CO2 is utilized in insufflation during diagnostic and therapeutic procedures like laparoscopy, endoscopy, and arthroscopy. It is also used in industrial processes such as hydrogen production, carboxytherapy, and cryogenic freezing.
CO2 is a colorless, odorless gas that is naturally present in Earth's atmosphere. It is also used as a cooling agent, preservative, and foaming agent in various industries. Carbon dioxide is used in the beverage industry for carbonation in soft drinks, beer, and sparkling wine. It is dissolved in water under pressure to form tiny bubbles, which contribute to the product's texture and taste. CO2 is also used as a refrigerant in ice-making machines and refrigerators. The oil and gas industry uses CO2 for enhanced oil recovery, where it is injected into underground oil reservoirs to increase oil production.

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The Combustion segment was valued at USD 4.65 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 51% 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. The market in Asia Pacific (APAC) is experiencing notable growth, driven by the increasing demand for food and beverages. China, India

During the first quarter of 2025, the liquid carbon dioxide prices in the USA reached 783 USD/MT in March. The demand for liquid carbon dioxide from carbonated drink producers and marketers remained high. Beyond beverages, liquid CO2 is utilized in food packaging, industrial operations, and as a firefighting agent. Increased demand in these industries added to overall pricing pressure.

Explore IMARC’s newly published report, titled “Liquid Carbon Dioxide Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2025 Edition,” offers an in-depth analysis of liquid carbon dioxide pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

Carbon dioxide pricing, such as carbon taxes and cap-and-trade systems, incentivizes reductions in greenhouse gas emissions and promotes a low-carbon economy. Learn more about the concept, implementation, and effectiveness of carbon pricing in combating climate change.