Carbon CreditsGlobal Carbon Market Value Soars to $851 Billion in 2021

Global Carbon Market Value Soars to $851 Billion in 2021

According to analysts at Refinitiv, Global Carbon Markets grew 164% in 2021 – reaching $851 billion.

90% of the global value is due to the European Union’s Emissions Trading System (EU ETS) which opened in 2005. It is the world’s most established carbon market.

The EU ETS is currently worth 683 billion euros (approximately $769 billion).

Regional markets in North America have grown by 6% as well.

What are carbon markets?

Carbon markets are tools that are used to limit GHG emissions.

As countries cap emissions, companies can purchase carbon credits beyond the acceptable levels. These credits represent carbon offset through an environmental project (such as reforestation or renewable energy).

This allows companies to continue operating as they develop the technology needed to reduce their carbon output.

How do carbon markets differ from the voluntary carbon market (VCM)?

Simply put, voluntary carbon markets are just that – voluntary. So, individuals or organizations choose to purchase carbon credits to reduce their emissions (but are not regulated to do so).

Last year, the VCM was valued at $1 billion – up from just $300 million in 2018.

Per Refinitiv, “We expect interest in the VCM to keep growing, boosted by an increasing number of companies worldwide taking on carbon neutrality goals and other climate commitments that involve the use of carbon offsets.”

Why does the price of carbon keep increasing?

Because the EU’s goal is to reduce emissions by 55% by 2030, the price of carbon has doubled since the end of 2020.

Ingvild Sørhus, the lead-carbon analyst at Refinitiv, said, “More expensive emission permits hit coal power plants relatively harder than  gas plants, but because of the soaring gas prices in the second half of 2021, coal generation was still more profitable.”

Analysts expect the price will continue to rise.



Most Popular



Ultimate Guide



Loading...



LATEST CARBON NEWS

A Battery ‘2X Better’ than Tesla’s Is Reshaping the $90B Home Power Storage Market

Disseminated on behalf of StorEn. Demand for home energy storage is booming, with up to 47% of US homes expected to have rooftop solar installations...

Why Madsen Will Work This Time: A Smarter Start for a Legendary Gold Mine

Disseminated on behalf of West Red Lake Gold Mines Ltd. The Madsen Mine, located in Ontario’s renowned Red Lake gold district, has a legacy of...

France’s New Law to Curb Fast Fashion Carbon Footprint: A Closer Look at SHEIN, Temu, and Inditex

The French Senate has approved a new legislation that puts strict rules on ultra-fast fashion brands like SHEIN and Temu. This bill bans ads...

BP Halts Indiana Carbon Capture Project Amid Safety and Economic Concerns

BP has indefinitely paused its carbon capture and storage (CCS) project in Indiana. The plan, aimed at making the state a hub for low-carbon...
CARBON INVESTOR EDUCATION

Planting Trees for Carbon Credits: Everything You Need to Know

As climate change intensifies, nations and industries are seeking innovative ways to cut carbon footprints. Carbon credits have emerged as a key tool in...

What is SMR? The Ultimate Guide to Small Modular Reactors

Energy is the cornerstone of modern life. We need electricity for healthcare, transportation, communication, and more. Many countries are choosing nuclear power because it...

What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024

The world must remove 5–16 billion metric tons of CO₂ annually by 2050 to limit global warming to 1.5°C. But with emissions still rising,...

Top 5 Carbon ETFs for Sustainable Investing in 2025

Like stocks, investors can buy and sell Exchange-Traded Funds (ETFs) whenever the market is open. Often investing in carbon credits through ETFs offers a...