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.

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.

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.

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.

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 direct carbon price averaged **** U.S. dollars per metric ton of carbon dioxide equivalent (USD/tCO₂e) in 2023. Around one quarter of global greenhouse gas emissions were covered by carbon pricing mechanisms as of April 2024, compared with ** percent in 2020.

The global carbon tax market is experiencing robust growth, driven by increasing global awareness of climate change and the urgent need to reduce greenhouse gas emissions. Governments worldwide are implementing carbon pricing mechanisms, including carbon taxes, to incentivize businesses and individuals to adopt cleaner technologies and practices. This market is projected to reach a significant size, estimated at $150 billion in 2025, based on current market trends and adoption rates. The Compound Annual Growth Rate (CAGR) for the period 2025-2033 is estimated to be 8%, reflecting the expected intensification of climate policies and technological advancements in carbon capture and emission reduction. Key segments driving growth include carbon dioxide taxes in the industrial sector, followed by transportation and agriculture. The market is geographically diverse, with significant contributions from North America and Europe, though the Asia-Pacific region is anticipated to show accelerated growth due to rapid industrialization and increasing government regulations. While the implementation of effective carbon tax systems faces challenges such as economic impact on certain industries and the complexity of cross-border regulations, the long-term trajectory points toward consistent growth due to increasing international cooperation on climate action and evolving technological solutions for carbon emission mitigation. The leading revenue generators in the carbon tax market are governmental tax agencies like the Internal Revenue Service (IRS), Canada Revenue Agency, and similar entities across the globe. These agencies play a crucial role in the implementation and enforcement of carbon tax policies, shaping market dynamics. The market's future trajectory will be significantly influenced by evolving international agreements, technological advancements in renewable energy, and the evolving geopolitical landscape, all of which have the potential to accelerate or decelerate the rate of carbon tax adoption and enforcement globally. Further research into specific regional implementations and economic impacts is needed to refine these projections and to offer a more nuanced analysis for specific market segments. However, the overarching trend remains clear: significant expansion of the carbon tax market is anticipated for the foreseeable future.

The value of the social cost of carbon (SCC) remains contested, despite having been described as the single most important concept in the economics of climate change. The SCC represents the discounted reduction in welfare caused by the release of an additional tonne of carbon dioxide equivalent (tCO2e) greenhouse gas emissions into the atmosphere. In practice, many estimates of the SCC are not robust or comparable, due to technical issues, including parameter estimation in climate assessment models. Using a market-based approach to calculate climate change metrics can avoid some of the controversy associated with calculating the SCC and subjectivity in deriving temperature alignment from transition plans. This study inverts results from an integrated assessment model commonly used to calculate the optimal SCC. A relationship is inferred between carbon price and both climate damages and implied temperature alignment. Using national data on effective cost of carbon (ECC), i.e. current carbon prices, the global market-implied temperature alignment is 3°C of warming. Using carbon consumption data to calculate implied climate impact, the per capita impact of higher-income countries is significantly higher than in low- and medium-income countries. The findings suggest that globally an ECC above $85/tCO2e may be required for implied temperature alignment to fall below 2°C of warming. However, both higher-income economies and those with high per capita carbon consumption levels may need to set their ECC at twice this level if their climate impact is to fall below a level aligned with limiting warming to 2°C. The current global Effective Cost of Carbon is $10/tCO2e. $85/tCO2e is needed to limit global warming below 2°C as agreed in the Paris Agreement.The Effective Cost of Cabon needed to meet this goal will ratchet in real terms to $200, $300 and $500/tCO2e by 2050, 2075 and 2100.Global implied temperature alignment shows 3°C warming with current ECC levels.Many higher-income countries exhibit higher priced climate damages but still overconsume carbon.Lower growth or decarbonization subsidies alone cannot achieve the Paris below 2°C target; carbon pricing is needed. The current global Effective Cost of Carbon is $10/tCO2e. $85/tCO2e is needed to limit global warming below 2°C as agreed in the Paris Agreement. The Effective Cost of Cabon needed to meet this goal will ratchet in real terms to $200, $300 and $500/tCO2e by 2050, 2075 and 2100. Global implied temperature alignment shows 3°C warming with current ECC levels. Many higher-income countries exhibit higher priced climate damages but still overconsume carbon. Lower growth or decarbonization subsidies alone cannot achieve the Paris below 2°C target; carbon pricing is needed.

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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

The global carbon credits market is experiencing a period of unprecedented expansion, driven by intensifying regulatory pressure and a surge in corporate climate commitments. With a projected valuation of over $6.4 trillion by 2033, the market is shifting from a niche mechanism to a central pillar of global decarbonization strategy. Europe, powered by its established Emissions Trading System, currently dominates the landscape, but the fastest growth is occurring in the Asia-Pacific region as nations like China and India develop their own carbon pricing frameworks. This transition is marked by a growing demand for high-quality, verifiable credits, particularly from nature-based solutions and innovative carbon removal technologies. The increasing sophistication of the market, including the use of blockchain for transparency, underscores its critical role in financing the transition to a low-carbon economy, although challenges related to standardization and quality assurance remain.

Key strategic insights from our comprehensive analysis reveal:

Europe's unparalleled dominance, spearheaded by the EU Emissions Trading System (ETS), accounts for approximately 88.7% of the global market value in 2025, making it the central hub for compliance-driven carbon trading and price discovery.
The Asia-Pacific region is emerging as the market's primary growth engine, exhibiting the highest regional CAGR of 46.269%. This rapid expansion is fueled by the implementation of national carbon markets, particularly in China, and a vast potential for renewable energy and forestry-based offset projects.
A significant market-wide flight to quality is underway, with increasing investor and corporate preference for high-integrity carbon credits that offer verifiable, permanent emission reductions and additional co-benefits, such as biodiversity and community development.

Global Market Overview & Dynamics of Carbon Credits Market Analysis The global carbon credits market is on a trajectory of exponential growth, poised to expand from $119.872 Billion in 2021 to an estimated $6460.75 Billion by 2033, reflecting an impressive CAGR of 39.411%. This dynamic growth is a direct consequence of the global imperative to address climate change, translating into robust regulatory frameworks and voluntary corporate action. The market is bifurcated into compliance markets, driven by government mandates like Emissions Trading Systems (ETS), and voluntary markets, where organizations purchase credits to meet their own sustainability goals. While Europe's mature compliance market currently represents the lion's share, rapid development in Asia and North America signals a future with more geographically diverse and interconnected carbon pricing mechanisms. Global Carbon Credits Market Drivers

Strengthening Climate Policies and Regulations: The proliferation of national and regional Emissions Trading Systems (ETS) and carbon taxes, inspired by international frameworks like the Paris Agreement, legally mandates industries to reduce emissions, creating consistent demand for carbon credits.
Surge in Corporate Net-Zero Commitments: A growing wave of corporations are voluntarily setting ambitious decarbonization targets, driving significant demand in the voluntary carbon market (VCM) as they seek high-quality offsets to neutralize unavoidable emissions.
Investor and Stakeholder Pressure: Increasing pressure from investors, consumers, and civil society is compelling companies to demonstrate credible climate action, making investment in carbon credits a key component of Environmental, Social, and Governance (ESG) strategies.

Global Carbon Credits Market Trends

Integration of Technology for Transparency: The adoption of blockchain and other digital technologies is enhancing the monitoring, reporting, and verification (MRV) of carbon projects, improving transparency and helping to prevent issues like double-counting.
Growing Demand for Carbon Removal Credits: There is a distinct shift in preference from emission reduction/avoidance credits towards carbon removal credits (e.g., direct air capture, biochar, reforestation), which are seen as essential for achieving net-zero goals.
Focus on Co-Benefits and Project Quality: Buyers are increasingly prioritizing carbon credits from projects that deliver additional social and environmental co-benefits, such as biodiversity protection, improved local livelihoods, and clean water access, oft...

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.

As the country with the largest CO2 emissions in the world, the Chinese government has put forward clear goals of hitting peak carbon emissions by 2030 and carbon neutralization by 2060. Thus, China started piloting carbon emission trading in 2013, and in July 2021 China opened national carbon trading, which is the largest carbon market in the world (China Launches World, 2021). Therefore, it is very important for China to study the role and mechanism of carbon trading at present. Based on the quasi-natural experiment of China’s carbon market pilot, this paper uses panel data of 30 provinces in mainland China from 2008 to 2019 to conduct an empirical study on carbon emission reduction and the economic effects in China’s pilot provinces through a Time-varying Differences-in-Differences method model. The results show that the implementation of a carbon trading policy can significantly inhibit carbon emissions and promote economic growth. At the same time, this paper further analyzes the emission reduction mechanism of the carbon emissions trading policy through the intermediary effect test and finds that the policy mainly realizes carbon emission reduction by changing the energy consumption structure, promoting low-carbon innovation, and upgrading the industrial structure. In addition, innovative research has found the impact of a carbon price signal and marketization on the emission reduction effect of the carbon market. Finally, targeted suggestions are put forward.

The size of the Carbon Trading Market market was valued at USD 574.09 Billion in 2024 and is projected to reach USD 2420.27 Billion by 2033, with an expected CAGR of 22.82% during the forecast period. Recent developments include: The Carbon Trading Market is projected to grow significantly in the coming years, driven by increasing government regulations and corporate sustainability initiatives. In 2023, the market was valued at approximately USD 574.09 billion, and it is expected to reach USD 3651.46 billion by 2032, exhibiting a CAGR of 22.82%., Recent developments in the carbon trading market include the launch of new carbon trading platforms, such as the China Beijing Green Exchange, and the expansion of existing platforms, such as the EU Emissions Trading System (ETS). Additionally, several countries have implemented carbon taxes or cap-and-trade programs, such as the UK's Carbon Price Support and Canada's Output-Based Pricing System. These developments are expected to drive demand for carbon credits and further stimulate the growth of the market.. Key drivers for this market are: Expanding corporate commitments to carbon neutrality Growing demand for carbon credits Development of new carbon capture and storage technologies Increasing investor interest in carbon markets Policy support for carbon pricing. Potential restraints include: Increasing demand for carbon credits Government regulations and policies Technological advancements Growing investment in renewable energy Rising awareness of climate change.

The Compliance Carbon Credit Market, valued at $820 million in 2025, is projected to experience robust growth, driven by escalating global efforts to mitigate climate change and meet stringent emission reduction targets. A Compound Annual Growth Rate (CAGR) of 14.81% from 2025 to 2033 indicates a significant expansion of the market, reaching an estimated value exceeding $3 billion by 2033. Key drivers include the increasing implementation of carbon pricing mechanisms (e.g., carbon taxes, emissions trading schemes) across various jurisdictions, coupled with growing corporate sustainability initiatives and investor pressure to reduce carbon footprints. The market's segmentation reveals considerable opportunities across renewable energy projects (solar, wind), forestry and land use (afforestation, reforestation), energy efficiency improvements in industries, and sustainable transportation solutions. North America and Europe are expected to dominate the market initially, given established regulatory frameworks and robust corporate engagement. However, Asia-Pacific is poised for significant growth in the coming years, driven by increasing industrialization and government support for carbon reduction policies in key markets like China and India. While the market faces restraints like fluctuating carbon prices and complexities in verifying and monitoring carbon credits, the overall outlook remains positive. Continued technological advancements in carbon accounting, the emergence of new carbon offsetting projects, and heightened awareness among businesses and consumers about climate change will contribute to sustained market expansion. The leading players in this market, including Carbon Trust, ClimateCare, and others, are strategically positioning themselves to capitalize on this growth by investing in project development, carbon credit verification, and innovative carbon management solutions. The increasing demand for high-quality and verifiable carbon credits will shape the competitive landscape, requiring companies to enhance transparency and operational efficiency. 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: Regulatory Mandates and Policies, Growing Corporate Sustainability Initiatives. Notable trends are: Charting the Course of Carbon Pricing: UK-ETS Post-Brexit.

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.

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.

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.

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