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 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.

EU Carbon Permits fell to 70.55 EUR on July 11, 2025, down 0.27% from the previous day. Over the past month, EU Carbon Permits's price has fallen 6.42%, but it is still 1.73% higher than a year ago, 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 2027, the EU will implement a second Emission Trading System (EU ETS 2) to cap emissions in buildings, road transport and small industries not covered by the already existing European Emissions Trading System. Substantial uncertainty remains regarding potential price trajectories and their underlying drivers. In light of this, we explore EU ETS 2 price paths using the energy system model PRIMES. We focus on the effect of complementary efficiency policies (EPs), as earlier research suggests they could have a profound impact. Indeed, analyzing three scenarios with different EPs stringency, we find that they make EU ETS 2 prices vary between 71 EUR/tCO2 and 261 EUR/tCO2 in 2030. Despite different instruments driving emission abatement, comparable emission reductions at the EU level (−41%) are achieved in all three scenarios. Energy efficiency policies at both EU and national levels are expected to significantly impact EU ETS 2 price levelsThe more stringent energy efficiency policies are, the lower the EU ETS 2 priceModeled EU ETS 2 prices lie in the range of 71–261 EUR/tCO2, depending on the stringency of complementary energy efficiency policies assumed in scenariosFundamentally modeled EU ETS 2 prices point to the possibility of price stability mechanisms of EU ETS 2 being triggered Energy efficiency policies at both EU and national levels are expected to significantly impact EU ETS 2 price levels The more stringent energy efficiency policies are, the lower the EU ETS 2 price Modeled EU ETS 2 prices lie in the range of 71–261 EUR/tCO2, depending on the stringency of complementary energy efficiency policies assumed in scenarios Fundamentally modeled EU ETS 2 prices point to the possibility of price stability mechanisms of EU ETS 2 being triggered

When asked to forecast the change in price of emission permits under the national emissions trading scheme in a survey in South Korea for 2024, more than ** percent of respondents answered that they expect it to increase. According to the source, some of the reasons for an increase were a possible insufficient allocation of emission permits and an increase in demand from higher production.

Professionals and stakeholders across various industry sectors expect the average carbon price in China's national emissions trading system (ETS) to rise to *** yuan per metric tons of carbon dioxide by 2030, compared with roughly ** yuan per metric ton in 2022.

Historical fare data for Edmonton Transit System (ETS).

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).

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 average annual price of European Union Emissions Trading System (EU ETS) allowances fell 22 percent year-on-year in 2024, to 65 euros. Still, EU ETS carbon allowances are forecast to rise to almost 150 euros by the end of the decade. Each EU ETS emissions allowance (EUA) gives the holder the right to emit one metric ton of carbon dioxide equivalent.

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.

Power Plant Emissions Trading Desk Market Outlook

As per our latest research, the global Power Plant Emissions Trading Desk market size reached USD 4.89 billion in 2024, reflecting a robust momentum in response to tightening environmental regulations and a growing commitment to decarbonization. The market is projected to expand at a CAGR of 12.1% between 2025 and 2033, culminating in a forecasted value of USD 13.53 billion by 2033. This impressive growth trajectory is primarily driven by the increasing implementation of emissions trading systems (ETS) worldwide and the rising participation of power sector entities in carbon markets to meet regulatory obligations and sustainability goals.

A key growth factor for the Power Plant Emissions Trading Desk market is the intensification of global climate policy frameworks, such as the Paris Agreement and region-specific initiatives like the European Union Emissions Trading System (EU ETS) and China’s national carbon market. These frameworks are compelling power producers to monitor, report, and trade emission allowances, thereby stimulating demand for sophisticated trading platforms and desk operations. Additionally, the proliferation of national and subnational ETS programs is expanding the addressable market, as more power plants and industrial facilities are brought under compliance regimes. The resulting need for effective risk management, price discovery, and portfolio optimization is pushing utilities and independent power producers to invest in emissions trading desks capable of handling complex transactions and regulatory requirements.

Technological advancements are further catalyzing market expansion. The integration of advanced analytics, artificial intelligence, and blockchain technologies into trading desk operations is enhancing transparency, reducing transaction costs, and improving the efficiency of emissions trading. These innovations enable real-time monitoring and predictive analytics, allowing market participants to optimize trading strategies and capitalize on price volatility. Moreover, the emergence of digital trading platforms and the increasing adoption of exchange-based and over-the-counter (OTC) trading solutions are democratizing access to emissions markets, attracting a broader range of participants, from large utilities to industrial facilities and financial institutions. This digital transformation is expected to drive significant growth in the Power Plant Emissions Trading Desk market over the forecast period.

Another pivotal growth driver is the ongoing energy transition and diversification of power generation portfolios. As power producers shift from coal and gas to renewables and low-carbon technologies, the complexity of emissions management increases. This transition necessitates more dynamic trading strategies to manage compliance costs and monetize surplus allowances. Furthermore, the volatility in allowance prices, driven by policy changes and market sentiment, is encouraging power plants to adopt proactive trading approaches. The growing intersection of emissions trading with broader energy and commodity markets is also fostering the development of integrated trading desks that can manage multiple asset classes, further boosting market growth.

From a regional perspective, Europe remains the largest and most mature market for Power Plant Emissions Trading Desks, owing to the longstanding presence of the EU ETS and a high level of regulatory sophistication. However, Asia Pacific is emerging as the fastest-growing region, fueled by the rapid expansion of China’s national ETS and increasing participation from other countries such as South Korea and Japan. North America, led by regional initiatives like the California Cap-and-Trade Program and the Regional Greenhouse Gas Initiative (RGGI), also represents a significant market, with growing interest from utilities and independent power producers. Latin America and the Middle East & Africa are witnessing gradual adoption, primarily driven by pilot programs and voluntary trading initiatives. Overall, the global market is characterized by regional diversity in regulatory approaches, trading volumes, and market maturity, which is shaping the competitive landscape and creating opportunities for innovation and differentiation.

The climate and carbon finance market is experiencing robust growth, driven by increasing global awareness of climate change and the urgent need for emission reduction strategies. The market, encompassing carbon trading, offsetting, and pricing mechanisms, is projected to expand significantly over the forecast period (2025-2033). Several factors contribute to this expansion, including stringent government regulations, corporate sustainability initiatives, and the growing demand for environmentally friendly solutions. The increasing adoption of carbon pricing mechanisms, such as carbon taxes and emissions trading schemes (ETS), is a key driver. Furthermore, the development of innovative carbon offsetting projects, including reforestation and renewable energy initiatives, is fueling market expansion. While challenges remain, such as the complexity of carbon accounting and the potential for market manipulation, the overall trend points towards substantial growth. The segmentation of the market into various applications (intermediaries, verifiers, exchanges, project developers) and types (cap and trade, offsetting, pricing) reflects the multifaceted nature of the industry. This diversity creates opportunities for a wide range of players, including technology providers, consulting firms, and financial institutions. The geographical distribution of the market, with significant growth expected in both developed and developing economies, highlights the global nature of climate action. Assuming a conservative CAGR of 15% (a reasonable estimate given the market's momentum) and a 2025 market size of $50 billion, the market is poised for considerable expansion in the coming years. The competitive landscape is characterized by a mix of established players and emerging companies. Established players like Verra and Gold Standard dominate the carbon credit verification and validation space, while companies like EcoAct and South Pole Group offer comprehensive carbon management services. The emergence of new technologies and innovative business models is further stimulating competition. However, the industry's growth is not without its hurdles. The lack of standardization in carbon accounting methodologies, the potential for fraud in carbon offset projects, and the volatility of carbon prices present significant challenges. Nevertheless, the long-term outlook for the climate and carbon finance market remains positive, driven by the increasing urgency of climate action and the growing sophistication of carbon markets. Effective regulation, transparent market mechanisms, and technological innovation will be crucial in ensuring the sustainable growth and integrity of this vital sector.

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.

Carbon markets are one of the main measures to mitigate climate change but their effects on electricity prices are still uncertain. We study the causation chain from carbon allowance price through wholesale electricity price to retail residential and industrial prices during the second and third phases of the European Union Emissions Trading System. We use panel unit root and panel cointegration techniques in order to assess the long run effects of carbon prices on wholesale and retail electricity prices. We evaluate the short and long run causal relationships between variables by applying vector error correction models and pairwise Granger non-causality tests. We find that a 1% increase in carbon prices increases wholesale (1.6%), residential (0.9%) and industrial (1.1%) electricity prices. Likewise, a 1% increase in wholesale electricity prices increases retail prices by 0.6-0.7%. The causality analysis indicates bidirectional causal relationships for most of the variables, both short and long run, which suggests potential feedback loops.

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.

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.

These are inputs into the BEIS Carbon Price Models, which are used for analysis, including for estimating impacts on the carbon price of policy changes, and for producing BEIS's updated short-term traded carbon values for modelling purposes and for public policy appraisal. Updated short-term traded carbon values for modelling purposes have been used in the latest update to BEIS’s Energy and Emissions projections (EEP) and will be used in other models of electricity generation and investment across government. BEIS’s short-term traded carbon values for UK public policy appraisal are used for valuing the impact of government policies on emissions in the traded sector, that is those sectors covered by the EU Emissions Trading System (EU ETS). These data are not released: they are commercial in nature because they have been produced for the Department by external contractors under commercial contract.

China ChongQing Carbon Emissions Trading Center: CQEA-1: Pricing Declaration: High Price data was reported at 39.330 RMB/Ton in 07 May 2025. This records an increase from the previous number of 34.000 RMB/Ton for 06 May 2025. China ChongQing Carbon Emissions Trading Center: CQEA-1: Pricing Declaration: High Price data is updated daily, averaging 28.970 RMB/Ton from Nov 2018 (Median) to 07 May 2025, with 747 observations. The data reached an all-time high of 52.000 RMB/Ton in 26 Mar 2024 and a record low of 0.000 RMB/Ton in 30 Apr 2025. China ChongQing Carbon Emissions Trading Center: CQEA-1: Pricing Declaration: High Price data remains active status in CEIC and is reported by Xinhua Finance. The data is categorized under China Premium Database’s Environmental Protection – Table CN.EPT: Xinhua: ChongQing Carbon Emissions Trading Center: CQEA-1/ CQCER-1.

The global Carbon Pricing Software market is experiencing robust growth, driven by increasing regulatory pressures, heightened corporate sustainability initiatives, and a growing awareness of climate change. The market, valued at approximately $1.5 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This significant expansion reflects the rising demand for solutions that help organizations effectively manage and report their carbon footprint, comply with evolving environmental regulations (such as the EU ETS and similar schemes globally), and achieve their sustainability goals. Key drivers include the increasing adoption of cloud-based solutions offering scalability and cost-effectiveness, coupled with the expansion of carbon pricing mechanisms across various industries including oil and gas, coal, and chemicals. The market is segmented by deployment (cloud-based and on-premise) and application (spanning various industries). While the cloud-based segment is currently dominant, on-premise solutions maintain relevance for specific industry needs and data security concerns. The growth trajectory of the Carbon Pricing Software market is fueled by several trends. These include the increasing sophistication of carbon accounting methodologies, the integration of carbon pricing software with other enterprise resource planning (ERP) systems, and the growing demand for data analytics and reporting capabilities to optimize carbon reduction strategies. However, the market faces certain restraints, such as the high initial investment costs for some solutions, the complexity of implementing and integrating these systems, and the potential for data accuracy and reliability issues. Despite these challenges, the long-term outlook for the Carbon Pricing Software market remains exceptionally positive, underpinned by the global imperative to mitigate climate change and the increasing adoption of environmentally responsible practices across all sectors. Leading vendors such as Sinai Technologies, Trucost, Microsoft, SAP, and Atmosfair are actively shaping market development through innovation and expansion. Geographical expansion, particularly in developing economies with burgeoning industries, further contributes to market growth potential.