Emissions Trading Market, By Type Of Trading (Cap-and-Trade and Baseline-and-Credit), By End Use (Energy, Power Generation, Industrial, Transportation, and Agriculture), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Afric

Emissions Trading Market, By Type Of Trading (Cap-and-Trade and Baseline-and-Credit), By End Use (Energy, Power Generation, Industrial, Transportation, and Agriculture), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

The emissions trading market size was estimated to be valued at US$ 317.6 Mn in 2023 and is expected to reach US$ 1,034.5 Mn by 2030, exhibiting a compound annual growth rate (CAGR) of 18.4% from 2023 to 2030.

Figure 1. Emissions Trading Market Share (%), By Region, 2023

Emissions trading, also known as cap-and-trade, is a market-based approach to controlling greenhouse gas emissions. It operates under the premise of setting a cap on the total allowable emissions from specific industries or regions. Companies are allocated emission allowances corresponding to their permitted emission levels. If a company emits below its allotted amount, it can sell the surplus allowances to other companies exceeding their emissions limits. This system incentivizes emissions reductions as companies strive to maintain compliance while providing flexibility in achieving emission targets. Emissions trading has gained prominence globally as a crucial tool in addressing climate change, fostering cooperation among industries, and encouraging investment in cleaner technologies.

The emissions trading market has witnessed significant growth in recent years, spurred by mounting environmental concerns and international efforts to combat climate change. Various regions, including the European Union, China, and parts of the U.S., have implemented emissions trading systems to regulate greenhouse gas emissions effectively. Additionally, the voluntary carbon market has emerged, enabling businesses and individuals to offset their carbon footprint voluntarily. As more countries and companies commit to reducing their carbon emissions, the emissions trading market is likely to continue expanding, playing a vital role in the global transition towards a more sustainable and climate-conscious future.

The European Union Emissions Trading System (EU ETS) is the largest carbon market in the world, accounting for around 90% of global carbon credit trading volume. The EU ETS is expected to continue to grow in the coming years, as the European Union commits to reducing its greenhouse gas emissions by 55% by 2030.

Market Dynamics:

Environmental concerns and climate change mitigation, regulatory compliance and international commitments are anticipated to drive growth of the global emissions trading market over the forecast period. Moreover, economic efficiency and cost-effectiveness, stimulating clean technologies and innovation is also expected to boost the growth of the emissions trading market over the forecast period. Expansion of emissions trading schemes, linking emissions trading systems, inclusion of new greenhouse gases, and market-based solutions for net-zero goals are expected to create growth opportunities for the emissions trading market during the forecast period.

However, political and policy uncertainty, insufficient stringency, market manipulation and price volatility are expected to hamper growth of the emissions trading market over the forecast period.

Key features of the study:

• This report provides in-depth analysis of the emissions trading market, and provides market size (US$ Mn) and compound annual growth rate (CAGR %) for the forecast period (2023–2030), considering 2022 as the base year.
• It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market.
• This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends, regional outlook, and competitive strategies adopted by key players.
• It profiles key players in the emissions trading market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies.
• Key companies covered as a part of this study include BP Plc., Royal Dutch Shell Plc., Total SE, Chevron Corporation, ExxonMobil Corporation, Engie SA, RWE AG, EON SE, Vattenfall AB, Gazprom, Mitsubishi UFJ Financial Group (MUFG), JPMorgan Chase & Co., Goldman Sachs Group, Inc. Citigroup Inc., and Barclays PLC Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics.
• The emissions trading market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts.
• Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the emissions trading market.

Detailed Segmentation:

• Emissions Trading Market Segmentation, By Trading Type:
• Cap-and-Trade
• Baseline-and-Credit
• Emissions Trading Market Segmentation, By End Use:
• Energy
• Power Generation
• Industrial
• Transportation
• Agriculture
• Emissions Trading Market Segmentation, By Region:
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East
• Africa
• Top Companies in the Emissions Trading Market:
• 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
• Citigroup Inc.
• Barclays PLC
• Goldman Sachs Group, Inc.