Burlingame, Aug. 18, 2023 (GLOBE NEWSWIRE) -- The global Emissions Trading Market size was valued at $334.80 billion in 2023 and is expected to reach $1,510 Billion by 2030, grow at a compound annual growth rate (CAGR) of 24% from 2023 to 2030, according to a new report by Coherent Market Insights, Inc. Emissions trading is an approach to controlling pollution and reducing greenhouse gas emissions. It is used to reduce or control pollution to protect human health and the environment. An emissions trading system allows countries and companies that emit greenhouse gases into the atmosphere to buy/sell these emissions among themselves. Emissions trading works by setting the environmental goal, national or sometimes regional. Such programs provide affected sources with the flexibility to choose among many options to comply with the environmental goal. Emissions trading is a cost-effective way of reducing greenhouse gas emissions.
Key Trends and Analysis of the Global Emissions Trading Market:
Increasing adoption of carbon pricing mechanisms or systems is one of the key trends expected to augment the growth of the global emissions trading market. For instance, more countries or regions across the globe are implementing carbon pricing mechanisms, such as emissions trading systems, to control or reduce greenhouse gas emissions. Carbon pricing (CO2 pricing) is a method/approach used to address climate change. Its overarching goal is to protect the environment, discourage the use of carbon dioxide-emitting fossil fuels, and address the causes of climate change to meet both the national or international climate agreements.
Several governments around the world have adopted norms to promote the use of emissions trading programs or systems. For instance, EU ETS is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. EU ETS represents over 90% of the global compliance carbon markets and in 2022 traded volume amounted to 9,277 MtCO2e representing €751.5 billion in value. The EU ETS is expected to continue to grow in the coming years, as the European Union (EU) commits to reducing its greenhouse gas emissions by 55% by 2030. This in turn is expected to drive market growth.
Read full market research report, "Emissions Trading Market Size, Share, Growth, By Emission Trading Scheme (ETS) Type, By Geographical Coverage, By Covered Sectors, By Tradable Emission Units, Outlook, and Opportunity Analysis, 2023 - 2030", published by Coherent Market Insights.
Increasing carbon emissions to augment the market growth
With the rapid growth in carbon emissions (also referred to as greenhouse gas or GHG emissions) across the globe, the implementation of emission trading program or system is also increasing with the rapid pace. According to the International Energy Agency (IEA), global carbon dioxide (CO2) emissions from energy combustion and industrial processes grew 0.9% or 321 Mt in 2022 to a new all-time high of 36.8 Gt. The lobal energy-related carbon dioxide emissions rose by 6% in 2021 to 36.3 billion tons, their highest ever level, as the world economy rebounded strongly from COVID-19 crisis and relied heavily on coal to power that growth.
Emissions Trading Market Report Coverage
| Report Attribute | Details |
| Market size value in 2023 | US$ 334.8 Billion |
| Forecast Period: | 2023 to 2030 |
| Growth rate | CAGR of 24% from 2023 to 2030 |
| Base year for estimation | 2022 |
| Historical data | 2018 - 2021 |
| Forecast period | 2023 - 2030 |
Global Emissions Trading Market - Key Developments
In February 2023, the Indonesian Ministry of Energy and Mineral Resources (MEMR) launched a mandatory, intensity-based emissions trading system (ETS) for the power generation sector. The new system will cover facilities with a production capacity of more than 100 MW, though smaller coal and fossil fuel plants may also be included at a later point.
In July 2021, China planned to launch its national emissions-trading program, a system that would create the world’s largest carbon market and double the share of global emissions covered under such programs.
Detailed Segmentation:
- Global Emissions Trading Market, By Emission Trading Scheme (ETS) Type:
- Cap-and-Trade
- Emissions Reduction Credit (ERC) Trading
- Offset and Credit Trading
- Global Emissions Trading Market, By Geographical Coverage:
- Regional Emissions Trading Schemes
- National Emissions Trading Schemes
- International Emissions Trading Mechanisms
- Global Emissions Trading Market, By Covered Sectors:
- Energy and Power Generation
- Industrial Processes
- Transportation
- Agriculture and Land Use
- Global Emissions Trading Market, By Tradable Emission Units:
- Carbon Allowances
- Carbon Offsets
- Emission Reduction Units (ERUs)
- Certified Emission Reductions (CERs)
- Global Emissions Trading Market, By Compliance vs. Voluntary Markets:
- Compliance Markets
- Voluntary Markets
- Global Emissions Trading Market, By Time Frame and Phases:
- Phases of Emission Trading Schemes
- Carbon Budgets
- Global Emissions Trading Market, By Technology Type:
- Carbon Capture and Storage (CCS)
- Renewable Energy Projects
- Global Emissions Trading Market, By Region:
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- Italy
- France
- Russia
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- ASEAN
- Australia
- South Korea
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East
- GCC
- Israel
- Rest of Middle East
- Africa
- Northern Africa
- Central Africa
- South Africa
- North America
- Company Profile:
- BP Plc
- Royal Dutch Shell Plc
- Total SE
- Chevron Corporation
- ExxonMobil Corporation
- Engie SA
- RWE AG
- ON SE
- Vattenfall AB
- Gazprom
- Mitsubishi UFJ Financial Group (MUFG)
- JPMorgan Chase & Co.
- Goldman Sachs Group, Inc.
- Citigroup Inc.
- Barclays PLC
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