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 rose to 73.21 EUR on August 8, 2025, up 2.01% from the previous day. Over the past month, EU Carbon Permits's price has risen 4.01%, and is up 4.38% 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.

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.

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.

The European Union Emissions Trading System (EU ETS) is a carbon emission trading scheme (or cap and trade scheme) which began in 2005 and is intended to lower greenhouse gas emissions by the European Union countries. The "ETS prices 2008-2024" dataset contains a summary of ETS prices in 2008-2024.

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.

This dataset provides daily carbon price data (2018-2024) for three carbon trading systems: the Hubei Carbon Market (China), the Guangzhou Carbon Market (China), and the European Union Carbon Trading System (EUCTS), which are sourced from official exchanges and treated as closing prices. It supports comparative studies of regional carbon pricing dynamics, policy implications and cross-market risk spillovers.

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 trading of carbon credits market is experiencing robust growth, driven by increasing regulatory pressure to reduce greenhouse gas emissions and a growing corporate commitment to environmental, social, and governance (ESG) initiatives. The market size in 2025 is estimated at $150 billion, demonstrating significant expansion from previous years. While the exact CAGR isn't provided, considering the rapid adoption of carbon offsetting schemes and the expanding scope of carbon pricing mechanisms globally, a conservative estimate would place the Compound Annual Growth Rate (CAGR) between 15-20% for the forecast period (2025-2033). This substantial growth is fuelled by several key drivers, including the implementation of carbon pricing schemes like the European Union Emissions Trading System (EU ETS) and the burgeoning voluntary carbon market, where companies purchase credits to offset their emissions. Further, technological advancements facilitating easier credit verification and trading platforms are streamlining the market. However, market growth faces some restraints. Challenges include concerns about the integrity and accuracy of carbon credit projects, the lack of standardized methodologies for verification, and the complexities involved in navigating international regulations. Despite these, the increasing awareness of climate change and the growing demand for sustainable practices are expected to significantly outweigh these challenges. The market is segmented by various credit types (e.g., REDD+, forestry, renewable energy), project developers, trading platforms and geographical regions. Key players like South Pole Group, 3Degrees, and ClimatePartner are shaping the market through their extensive project portfolios and trading expertise. This intense competition fosters innovation and pushes for greater transparency and efficiency in the market, leading to long-term market expansion and increased corporate responsibility.

The global trading of carbon credits is a rapidly expanding market, driven by increasing regulatory pressure to mitigate climate change and the growing awareness of environmental, social, and governance (ESG) factors among businesses. The market, estimated to be worth $200 million in 2025, is projected to experience a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This robust growth is fueled by several factors. Firstly, the expansion of carbon pricing mechanisms, including emissions trading schemes (ETS) like the EU ETS and regional initiatives, creates a significant demand for carbon credits. Secondly, corporate sustainability initiatives are pushing companies to offset their carbon footprints, driving demand for high-quality, verified credits. Thirdly, technological advancements in monitoring, reporting, and verification (MRV) are enhancing the transparency and efficiency of the carbon credit market, boosting investor confidence. However, challenges remain, including concerns about the quality and legitimacy of some carbon credits, the need for standardized methodologies, and the potential for market manipulation. Despite these challenges, the long-term outlook for the carbon credit market is overwhelmingly positive. Continued government regulations, increasing corporate demand for offsetting, and technological innovation are all pointing towards substantial growth. While the specifics of regional market share will depend on various governmental policies and existing emission reduction efforts, it's anticipated that North America and Europe will dominate initially, given their established ETS programs and strong corporate ESG commitments. However, the Asia-Pacific region, with its large and rapidly developing economies, presents significant future growth potential. The diversification of the market, with various types of carbon credits and applications emerging, will further add to its complexity and opportunity. Segmentation by application (e.g., renewable energy, industrial processes) and type (e.g., verified emission reductions, removals) will refine market understanding and provide targeted investment opportunities. This ongoing evolution necessitates constant monitoring of regulatory developments, technological innovations, and market trends for successful navigation of this dynamic landscape.

Empirical result of European market.

Emission Trading Schemes Market Outlook

The global emission trading schemes market size was valued at approximately USD 290 billion in 2023 and is projected to reach USD 550 billion by 2032, growing at a compound annual growth rate (CAGR) of around 7% during the forecast period. This growth is primarily driven by increasing regulatory frameworks and growing environmental consciousness among industries worldwide. Stringent regulations imposed by governments to limit carbon emissions are significantly contributing to market expansion. The rising demand for sustainable and clean energy solutions, coupled with technological advancements in monitoring and reporting emissions, further propels the market. Moreover, the increasing adoption of emission trading schemes by various sectors, including energy and manufacturing, is boosting market growth.

The demand for emission trading schemes is being fueled by the urgent need to address climate change and mitigate its adverse effects. With the rising global awareness of environmental issues, governments and international organizations are intensifying their efforts to reduce carbon footprints. The establishment of emission trading schemes provides a market-based approach to controlling pollution by setting a cap on emissions and allowing the trading of emission allowances. This mechanism incentivizes industries to innovate and adopt cleaner technologies, thereby fostering a greener economy. Moreover, the economic benefits derived from trading emission allowances, such as cost savings and increased operational efficiency, are encouraging industries to participate actively in these schemes, further driving the market growth.

Additionally, the proliferation of initiatives aimed at promoting sustainable business practices and corporate social responsibility is significantly bolstering the adoption of emission trading schemes. Companies are increasingly recognizing the importance of integrating environmental considerations into their business strategies to enhance their brand reputation and meet stakeholder expectations. This shift towards sustainable practices is creating lucrative opportunities for the emission trading schemes market. Furthermore, advancements in digital technologies, such as blockchain and artificial intelligence, are revolutionizing the way emissions are tracked, measured, and reported, thereby facilitating the efficient implementation and management of emission trading schemes. These technological innovations are expected to play a crucial role in enhancing the transparency, reliability, and scalability of emission trading systems, thereby driving market growth.

On a regional scale, Europe holds a dominant position in the emission trading schemes market, owing to its stringent environmental policies and well-established emission trading systems. The European Union Emission Trading System (EU ETS) is one of the largest and most influential cap-and-trade systems globally, setting a benchmark for other regions. North America is also witnessing significant growth due to the increasing adoption of emission trading schemes at both federal and state levels. The Asia Pacific region is emerging as a promising market for emission trading schemes, driven by rapid industrialization, urbanization, and growing awareness of environmental sustainability. Countries such as China and South Korea are actively implementing and expanding their emission trading systems to curb pollution and meet international climate targets.

The Trading of Voluntary Carbon Offsets has emerged as a significant component of the global effort to combat climate change. Unlike mandatory emission trading schemes, voluntary carbon offsets allow companies and individuals to offset their carbon emissions by investing in environmental projects that reduce greenhouse gases. This market is gaining traction as businesses seek to demonstrate their commitment to sustainability and corporate social responsibility. By participating in voluntary carbon offset trading, companies can not only mitigate their environmental impact but also enhance their brand image and appeal to environmentally conscious consumers. The flexibility and diversity of projects available, ranging from reforestation to renewable energy initiatives, provide ample opportunities for organizations to align their offset strategies with their sustainability goals. As awareness and demand for carbon neutrality grow, the voluntary carbon offset market is poised to play a crucial role in the broader emission trading landscape.

Type Analysis<

The price of one carbon allowance under the United Kingdom Emissions Trading Scheme (UK ETS) was **** U.S. dollars per metric ton on April 1, 2025. The UK ETS launched in 2021 after the country's withdrawal from the European Union, and covers emissions from energy-intensive industries, the power generation sector, and aviation.

No description is available. Visit https://dataone.org/datasets/sha256%3A5e46c866f47199ee1a9a9b2e82fef2c7ba98388a1a9bdf513c9525651bfd910f for complete metadata about this dataset.

Empirical result of OLS regression.

The global average emissions-weighted price on emissions covered by an emissions trading system (ETS) was **** U.S. dollars per metric ton of carbon dioxide equivalent (USD/tCO₂e) in 2024. The EU ETS became the world's first carbon market in 2005.

European Union Emission Trading System (EU-ETS) revenues totaled *****billion U.S. dollars in 2024. This accounted for roughly ***percent of global emissions trading revenues that year. EU-ETS revenues from the auctioning of allowances have increased considerably in recent years, owing to factors like rising carbon credit prices. EU ETS revenues go toward various end uses, including renewable energy development, low-carbon transportation, and improving energy efficiency.

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 global carbon credit trading market is experiencing robust growth, driven by increasing regulatory pressure to mitigate climate change and a rising awareness of environmental sustainability among corporations and governments. The market, currently valued at approximately $200 billion in 2025 (this is an estimated figure based on typical market sizes for similar commodities and reported CAGR values; no specific market size was provided), is projected to maintain a healthy Compound Annual Growth Rate (CAGR) of around 15% from 2025 to 2033. This growth is fueled by several factors, including the expanding implementation of carbon pricing mechanisms like Emissions Trading Schemes (ETS) in various regions, increasing corporate commitments to net-zero targets, and the growing demand for high-quality carbon offsets to compensate for unavoidable emissions. Significant advancements in carbon credit verification and tracking technologies are also enhancing market transparency and trust, further stimulating growth. However, challenges remain, such as the potential for market manipulation, concerns about the quality and additionality of certain carbon credits, and the need for greater standardization across different carbon credit certification schemes. The market is segmented by application (e.g., energy, transportation, industry) and type of carbon credit (e.g., verified emission reductions, verified carbon removals). Regional variations in market growth are anticipated, with developed economies in North America and Europe currently leading the market due to established regulatory frameworks and strong corporate engagement. However, developing economies in Asia-Pacific, particularly China and India, are poised for significant growth as their carbon markets mature and environmental regulations strengthen. The competitive landscape is dynamic, comprising a mixture of established players (e.g., large corporations, environmental consultancies) and emerging technology companies focused on streamlining carbon credit trading platforms and enhancing transparency. Effective policies, robust market infrastructure, and international cooperation are crucial for unlocking the full potential of the carbon credit market and driving substantial progress towards global climate goals.

Carbon Credit Market Outlook

As per our latest research, the global carbon credit market size reached USD 978.6 billion in 2024, reflecting robust growth driven by tightening environmental regulations and a surge in corporate net-zero commitments. The market is expected to expand at a compelling CAGR of 18.7% from 2025 to 2033, reaching an estimated USD 5,246.1 billion by 2033. This remarkable growth trajectory is fueled by increasing demand for carbon offsetting solutions, expansion of both compliance and voluntary carbon markets, and growing investments in sustainable development projects worldwide. The convergence of regulatory mandates and voluntary climate action is fundamentally reshaping the carbon credit landscape, making it a pivotal component in the global transition to a low-carbon economy.

The primary growth factor propelling the carbon credit market is the escalating stringency of environmental regulations across major economies. Governments and regulatory bodies in regions such as the European Union, North America, and Asia Pacific are implementing ambitious emissions reduction targets, often supported by cap-and-trade systems and carbon pricing mechanisms. These policies create a robust compliance-driven demand for carbon credits, compelling industries to invest in emissions offset projects or purchase credits to meet regulatory obligations. Additionally, the integration of carbon pricing into national strategies, such as the EU Emissions Trading System (ETS) and China’s national carbon market, is significantly expanding the addressable market for carbon credits, further accelerating market growth.

Another significant driver is the proliferation of voluntary carbon markets, underpinned by a surge in corporate climate pledges and the growing influence of Environmental, Social, and Governance (ESG) investing. Corporations, particularly in sectors with hard-to-abate emissions, are increasingly leveraging voluntary carbon credits to achieve net-zero or carbon-neutral goals. This trend is further amplified by consumer and investor demand for sustainable business practices, compelling companies to offset residual emissions through verified carbon projects. The development of innovative project types, such as nature-based solutions and technology-driven carbon removal, is expanding the scope and diversity of available credits, attracting a broader spectrum of participants and investors into the market.

Technological advancements and digitization are also playing a crucial role in shaping the future of the carbon credit market. Blockchain technology, digital monitoring, and verification platforms are enhancing transparency, traceability, and trust in carbon credit transactions. These innovations are streamlining the issuance, trading, and retirement of credits, reducing transaction costs, and mitigating risks associated with double counting or fraud. As a result, both compliance and voluntary markets are witnessing increased participation from institutional investors, financial intermediaries, and new market entrants, further driving market liquidity and scalability.

From a regional perspective, Europe continues to hold the largest share of the global carbon credit market, accounting for over 40% of the total value in 2024, owing to its mature regulatory framework and ambitious climate policies. North America follows closely, with significant growth anticipated due to the expansion of state-level carbon trading programs and corporate climate action. Asia Pacific is emerging as the fastest-growing region, propelled by the launch of China’s national carbon market and increasing participation from countries such as Japan, South Korea, and Australia. Latin America and the Middle East & Africa are also witnessing rising activity, primarily in nature-based projects and renewable energy, as governments and private sector entities seek to capitalize on emerging carbon finance opportunities.

Type Analysis

The carbon credit market is bifurcated into two primary t