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.

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.

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.

Prices for EU Carbon Permits - Precio De Mercado including live quotes, historical charts and news. EU Carbon Permits - Precio De Mercado was last updated by Trading Economics this March 26 of 2025.

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.

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.

This data package includes the underlying data files to replicate the data and charts presented in Russia’s invasion of Ukraine has cemented the European Union’s commitment to carbon pricing PIIE Policy Brief 23-13.

If you use the data, please cite as: Kirkegaard, Jacob Funk. 2023. Russia’s invasion of Ukraine has cemented the European Union’s commitment to carbon pricing. PIIE Policy Brief 23-13. Washington, DC: Peterson Institute for International Economics.

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.

The East European carbon market reached $1.4B in 2024, standing approx. at the previous year. The total consumption indicated perceptible growth from 2012 to 2024: its value increased at an average annual rate of +2.4% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption decreased by -8.7% against 2022 indices.

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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

This upload contains the modeling results (CO2 price trajectories, MSR figures, capacities, electricity dispatch) presented in the article:

Sitarz, J., Pahle, M., Osorio, S., Luderer, G., Pietzcker R. : "EU carbon prices signal high policy credibility and farsighted actors" (Under Review).

You may use the files to reproduce all figures of the article.

Content of this upload:

• Fig_3.csv - CO2 price trajectories displayed in Figure 3
• Fig_4_6_ExtData4.csv - CO2 price trajectories displayed in Figures 4, 6 and Extended Data Figure 4
• Fig_7.csv - Electricity dispatch and capacities displayed in Figure 7
• Fig_ExtData1.csv - MSR Figures displayed in Extended Data Figure 1
• Fig_ExtData2.csv - EUAs bought or sold by investors displayed in Extended Data Figure 2
• Fig_Methodology.csv - Electricity dispatch and capacities displayed in Methodology Figures

The Carbon Pricing Software market is experiencing robust growth, driven by increasing regulatory pressure to reduce carbon emissions and a growing corporate commitment to environmental, social, and governance (ESG) initiatives. The market size in 2025 is estimated at $1.5 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This growth is fueled by several key trends, including the increasing adoption of cloud-based solutions for enhanced scalability and accessibility, the expansion into new sectors like chemicals and beyond oil & gas and coal, and the development of more sophisticated software capable of handling complex emissions calculations and reporting. Leading companies such as Sinai Technologies, Trucost, Microsoft, and SAP are driving innovation and market penetration, offering solutions that range from basic carbon accounting to comprehensive emissions management platforms. While the initial investment in software can be a restraint for some businesses, the long-term benefits of improved efficiency, regulatory compliance, and enhanced ESG reporting outweigh the costs. The segmentation of the market reveals a strong preference for cloud-based solutions, offering flexibility and cost-effectiveness. The oil and gas sector remains a key driver of demand, but significant growth is expected from the chemical and other industrial sectors as regulations expand and corporate sustainability goals become more stringent. Geographically, North America and Europe currently hold the largest market share due to established regulatory frameworks and higher levels of corporate sustainability awareness. However, substantial growth opportunities exist in the Asia-Pacific region, particularly in countries like China and India, as their economies continue to develop and environmental concerns rise. The market is poised for continued expansion as governments worldwide tighten environmental regulations and companies face increasing pressure to demonstrate their commitment to reducing their carbon footprint. This evolution will drive further innovation in carbon pricing software, leading to more integrated and user-friendly solutions that cater to the diverse needs of businesses across various industries.

The Europe carbon market was estimated at $5.2B in 2024, rising by 3.7% against the previous year. Overall, consumption, however, saw a relatively flat trend pattern. Over the period under review, the market reached the maximum level at $5.8B in 2022; however, from 2023 to 2024, consumption remained at a lower figure.

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.

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.

Empirical result of European market.

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.

Empirical results of panel quantile regression.

Climate And Carbon Finance Market Outlook

The global climate and carbon finance market size was valued at USD 587 billion in 2023 and is projected to reach USD 1,745 billion by 2032, expanding at a compound annual growth rate (CAGR) of 12.6% during the forecast period. A significant factor driving this growth is the increasing global commitment to combat climate change through various financial instruments designed to reduce carbon emissions and fund climate-friendly projects.

A major growth factor contributing to the expansion of the climate and carbon finance market is the widespread adoption of stringent regulatory frameworks and government policies across numerous countries aimed at reducing carbon footprints. Governments worldwide are introducing carbon pricing mechanisms such as carbon taxes and emissions trading systems, which incentivize companies to lower their emissions. This regulatory push has created a robust market for carbon credits and offsets, as companies seek to comply with these new standards and avoid financial penalties.

Another critical driver for market growth is the heightened awareness and growing corporate responsibility towards sustainable practices. Corporations are increasingly recognizing the financial and reputational benefits of investing in climate-friendly projects. The rise of Environmental, Social, and Governance (ESG) criteria in investment decisions is pushing businesses to adopt carbon reduction strategies. This shift is generating significant demand for climate bonds and green bonds, which provide the necessary capital for these sustainable initiatives.

The increasing frequency and severity of climate-related disasters are also propelling market growth. As the economic impacts of extreme weather events become more pronounced, there is an urgent need for financial mechanisms that can mitigate these risks. Climate finance tools are essential for building resilience against climate-related disruptions, making investments in renewable energy, energy efficiency, and sustainable agriculture more attractive. This trend is particularly notable in regions that are highly vulnerable to climate change, which furthers the necessity for robust climate and carbon finance solutions.

Regionally, Europe has emerged as a leader in the climate and carbon finance market, driven by the European Union's ambitious climate policies and its commitment to becoming carbon-neutral by 2050. The Asia-Pacific region is also witnessing significant growth, fueled by rapid industrialization and urbanization, which necessitate substantial investments in sustainable infrastructure. North America, with its evolving regulatory landscape and increasing corporate participation in carbon markets, is another key region contributing to the market expansion.

Component Analysis

The component segment of the climate and carbon finance market is diversified, including carbon credits, carbon offsets, climate bonds, green bonds, and other financial instruments. Carbon credits are a critical component, representing permits that allow a country or organization to emit a certain amount of carbon dioxide. These credits are traded in carbon markets and are essential for companies looking to meet emission targets. The rise in regulated carbon markets and voluntary carbon markets is driving the demand for carbon credits, contributing significantly to the market’s growth.

Carbon offsets are another vital component, functioning as investments in projects that reduce or sequester carbon emissions to compensate for emissions made elsewhere. These offsets support various initiatives such as reforestation, renewable energy projects, and methane capture from landfills. The increasing corporate focus on achieving carbon neutrality is propelling the demand for carbon offsets. Companies are increasingly purchasing offsets to demonstrate their commitment to sustainability, further fueling market growth.

Climate bonds and green bonds are financial instruments designed to fund projects that have a positive impact on the environment. These bonds are crucial for mobilizing large-scale capital towards sustainability initiatives. The market for climate and green bonds is expanding rapidly, driven by the growing investor interest in sustainable finance and the need to finance large-scale renewable energy and infrastructure projects. The issuance of these bonds is expected to continue rising, supported by favorable government policies and increasing private sector participation.

Additionally, the market compr

Prices for EU Carbon Permits - 股票价格 including live quotes, historical charts and news. EU Carbon Permits - 股票价格 was last updated by Trading Economics this February 26 of 2025.