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 n February 2023. Athough average annual EUA prices have increased significantly since the 2018 reform of the EU-ETS, they fell 19 percent year-on-year in 2023 to 65 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). Volatility of carbon prices EU carbon prices are volatile and change daily. Prices are determined by the supply and demand of allowances. In March 2022, the outbreak of the Russia-Ukraine war caused EUA prices to crash to less than 60 euros/tCO₂ due to the expected ban on Russian energy imports in Europe.

EU Carbon Permits decreased 2.17 EUR or 2.97% since the beginning of 2025, 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 65 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 almost 150 euros/tCO₂e, before reaching nearly 200 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 2024, the European Union Emission Trading Scheme (EU ETS) carbon price was above 60 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 2024, the price of carbon on the UK ETS was 45 USD/tCO₂e.

The cost of UK ETS carbon permits (UKAs) was around 100 GBP in February 2023, but prices have fallen considerably since then. Prices on January 16, 2025 were just 32.57 GBP, down 11 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 30 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 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).

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 84.4 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 90 euros per metric ton of CO₂ barrier in February 2022, and in February 2023 it surpassed 100 euros per metric ton of CO₂.

Empirical result of European market.

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.

The price of one carbon allowance under the United Kingdom Emissions Trading Scheme (UK ETS) was 45.06 U.S. dollars per metric ton on April 1, 2024, This was roughly half of what one allowance cost a year earlier. 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.

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European Union Emission Trading System (EU-ETS) revenues reached a record high of 47.4 billion U.S. dollars in 2023. This accounted for around 63 percent of global emissions trading revenues that year. EU-ETS revenues from the auctioning of allowances has increased considerably in recent years, owing to factors like rising prices. EU ETS revenues go toward various end uses, including renewable energy development, low-carbon transportation, and improving energy efficiency.

Empirical results of panel quantile regression.

Variables’ definition.

This report includes carbon market developments globally. There are four articles covered in detail: 1. Regional Greenhouse Gas Initiative – The Potential Solution for the US Carbon Market Rapid growth in economic activity has had a negative impact on the fragile ecosystem. Carbon emissions have impacted the environment and global warming is one of the key manifestations of this.. In order to prevent global warming by controlling carbon emissions, politicians across the globe are implementing various measures. The Regional Greenhouse Gas Initiative (RGGI) is one of the initiatives pioneered by the Northeastern and Mid-Atlantic states in the US. This initiative has yielded favorable results in terms of reducing the carbon emissions in the ratified states. The success of RGGI has also triggered the debate to replicate a similar scheme at the federal level. 2. New Zealand Climate Change Response Amendment of 2009 The New Zealand Emissions Trading Scheme (NZ ETS) was legislated in September 2008 under the Climate Change Response Act (2002). This law, amended in November 2009, became the first mandatory emissions trading scheme outside Europe. The liquidity in the New Zealand emissions market increased in June with the trading of around 1.5 million NZUs as companies responded to the inclusion of three new sectors in the trading scheme. Due to this, the supply is expected to increase in the second half of 2010. The fixed price of the emissions unit and limited supply initially would not create much market movement at first within the NZ ETS. It is expected that participants can prioritize buying the NZUs at a fixed price of NZ$25 from the government rather than buying spot permits presently being traded at around NZ$18– NZ$18.50. 3. Kyoto Carbon Market Balance: Demand and Supply Scenario, 2008–2012 The economic downturn in 2008 caused a decline in investments in the carbon sector. In addition, the two international climate change talks in Copenhagen and Bonn were not able to produce concrete results favoring the global carbon market. Against this backdrop, the players in this market have become much more conservative. Also, the recent delay of regional carbon bills across the globe has impacted the expected supplies of emission units in the trading market. Delays in the US’s and Japan’s carbon bills as well as Australia’s Carbon Pollution Reduction Scheme (CPRS) have resulted in uncertain market conditions, thereby impacting the decisions of Parties involved in the Kyoto Protocol. In this context, the demand-supply scenario of the Kyoto market suggests that the Kyoto projects pipeline could continue to shrink as investors are reluctant to make long-term investments due to the uncertain post-2012 scenario. 4. Moving Towards Zero – Sony’s Perspective Sony Corporation announced its “Road to Zero” global environmental plan. The plan includes a long-term goal of achieving a zero environmental footprint by 2050. The mid-targets will be implemented globally across the Sony Group beginning in the fiscal year 2011 (April 2011), and will extend through to the end of the fiscal year 2015 (March 2016), at which time new targets for the following five years will be set. Read More

When the European Union Emission Trading System (EU ETS) started in 2005 it covered 4.41 percent of global greenhouse gas emissions. In 2005, the EU ETS was the only emissions trading system in the world. It is now estimated to cover 2.69 percent of global emissions. As of 2023, carbon pricing instruments, such as the EU ETS, covered 23 percent of global emissions.

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.

The European sea and coastal freight transport industry took a huge hit from the effects of the global pandemic and geopolitical tensions in recent years. After enjoying a period of steady growth prior to the pandemic, the industry slumped in 2020, with pandemic-induced lockdowns severely affecting demand, leading to a dramatic downturn in freight volumes. Shipping companies continue to grapple with challenges in the absence of pandemic-related restrictions, though a hefty rise in freight rates has buoyed revenue and profitability. Revenue is forecast to sink at a compound annual rate of 3.1% to €134.9 billion over the five years through 2024. Significant congestion at ports led to a surge in freight rates in 2021, as a pandemic-induced shift in international trade flows was compounded by reduced avialability of containers and the blockage of the Suez Canal. Having initially been anticipated to fall in 2022, ongoing pandemic-related restrictions in key shipping hubs like Shanghai and geopolitical tensions stemming from Russia’s invasion of Ukraine spurred a further boom in freight rates during 2022. With the hike in freight rates outweighing increased bunker costs caused by rising fuel prices, revenue and operating profit received an unexpected boost in 2022. Freight rates began to ease in the second half of 2022, while the global economic slowdown has led to a slight dip in freight volumes. Revenue is forecast to drop by 7.9% in 2024. Looking ahead, the industry is poised to enter a transformative phase over the next five years, driven by regulatory and technological changes. The extension of the EU's Emissions Trading Scheme (EU ETS) to all large ships entering EU ports is expected to stimulate investment in green technology, as companies strive to reduce their carbon footprints. Crucially, the uptake of new technologies, like robotic offloading technology, is likely to accelerate in the coming years. Revenue is forecast to climb at a compound annual rate of 2.2% to reach €150.5 billion over the five years through 2029.

Poland had the highest EU Emissions Trading System (ETS) freely allocated allowance in 2005 and 2006, at 237.6 million metric tons of carbon dioxide equivalent — a 23 percent share of the total EU ETS. In 2023, ETS freely allocated allowances decreased to 42.4 million metric tons of carbon dioxide equivalent. The EU Emissions Trading System is a carbon credit market used to mitigate climate change and one of the tools to reduce greenhouse gas emissions.

There were 75 carbon pricing mechanisms in operation worldwide as of April 1, 2024, covering roughly 13 billion metric tons of carbon dioxide equivalent. These comprised 39 carbon tax initiatives and 36 Emissions Trading Systems (ETS). 13 ETS were national initiatives, while 23 were sub-national initiatives, such as the RGGI in the U.S. The only regional ETS in place was the EU ETS. The number of operating carbon pricing mechanisms has increased considerably in recent years.