Global Emissions Trading Market is estimated to be valued at USD 470.9 Mn in 2025 and is expected to reach USD 1,554.1 Mn by 2032, growing at a compound annual growth rate (CAGR) of 18.6% from 2025 to 2032.
Report Coverage
Report Details
Base Year:
2024
Market Size in 2025:
USD 470.9 Mn
Historical Data for:
2020 To 2024
Forecast Period:
2025 To 2032
Forecast Period 2025 to 2032 CAGR:
18.60%
2032 Value Projection:
USD 1,554.1 Mn
Figure. Emissions Trading Market Share (%), By Region 2025
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 (2025-2032), considering 2024 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
Company Profiles
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.
Table of Contents
1. Research Objectives and Assumptions
Research Objectives
Assumptions
Abbreviations
2. Market Purview
Report Description
Market Definition and Scope
Executive Summary
Emissions Trading Market, By Trading Type
Emissions Trading Market, By End Use
Emissions Trading Market, By Region
Coherent Opportunity Map (COM)
3. Market Dynamics, Regulations, and Trends Analysis
Market Dynamics
Drivers
Environmental concerns and climate change mitigation
Regulatory compliance and international commitments
Economic efficiency and cost-effectiveness
Stimulating clean technologies and innovation
Restraints
Lack of commitment by large emitters
Prevalence of free allocation of emissions allowances
Carbon leakage risk
Opportunities
Expansion of emissions trading schemes
Linking emissions trading systems
Inclusion of new greenhouse gases
Market-based solutions for net-Zero goals
Key Highlights
Regulatory Scenario
Recent Trends
Product Launches/Approvals
PEST Analysis
PORTER's Analysis
Mergers, Acquisitions, and Collaborations
4. Emissions Trading Market, By Trading Type, 2020-2032, (US$ Mn)
Introduction
Market Share Analysis, 2025 and 2032 (%)
Y-o-Y Growth Analysis, 2021 - 2032
Segment Trends
Cap-and-Trade
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Baseline-and-Credit
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
5. Emissions Trading Market, By End Use, 2020-2032, (US$ Mn)
Introduction
Market Share Analysis, 2025 and 2032 (%)
Y-o-Y Growth Analysis, 2021 - 2032
Segment Trends
Energy
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032, (US$ Million)
Power Generation
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032, (US$ Million)
Industrial
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032, (US$ Million)
Transportation
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032, (US$ Million)
Agriculture
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032, (US$ Million)
6. Emission Trading Market, By Region, 2020-2032, (US$ Mn)
Introduction
Market Share Analysis, By Sub-region, 2025 and 2032 (%)
Y-o-Y Growth Analysis, For Sub-region, 2021 - 2032
Segment Trends
North America
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Trading Type , 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By End Use, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)
U.S.
Canada
Europe
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Trading Type , 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By End Use, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)
Germany
U.K.
Spain
France
Italy
Russia
Rest of Europe
Asia Pacific
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Trading Type , 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By End Use, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)
China
India
Japan
Australia
South Korea
ASEAN
Rest of Asia Pacific
Latin America
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Trading Type , 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By End Use, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)
Brazil
Argentina
Mexico
Rest of Latin America
Middle East & Africa
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Trading Type , 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By End Use, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)