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Global carbon market value soars to $851 billion in 2021

According to Refinitiv's analysts, Global Carbon Markets expanded by 164% in 2021 to $851 billion.

The European Union's Emissions Trading System (EU ETS) is currently worth 683 billion euros (approximately $769 billion). EU ETS has been around since 2005. It is considered one of the most established carbon markets in the world.

In addition, North American markets have grown by 6%. This means there is now more than half a billion dollars worth associated with this system just within these North American regions!

What are carbon markets?

Carbon markets provide a way for companies, groups of people or nations to limit their own GHG emissions.

These tools also allow those that emit less than the average amount of climate-changing gas (CO2)  to purchase "credits" from projects involving reforestation and other environmentally beneficial activities - these represent positive action being taken on behalf of our planet's future generations by making sure today’s pollution doesn't fry it tomorrow!

"The price of carbon offsets will triple by 2035." according to Ernst&Young.  Read their report.

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

Voluntary carbon markets are just that - voluntary. So, individuals or organizations choose to purchase "carbon credits"  to reduce their emissions (but are not regulated in doing so).

A recent report by Visual Capitalist notes how this form of investment is on track for massive growth: With last year's valuation at $1 billion USD , it only seems inevitable that future numbers will be even higher considering increasing corporate awareness around climate change alongside other environmental problems such as pollution from industrial plants which also require solutions because they're unsafe already!

 

Why does the price of carbon keep increasing?

With the EU’s goal to reduce emissions by 55% by 2030, carbon prices have skyrocketed. In 2020 they were at a manageable rate but as of July 2021, this all changed when permits reached their price ceiling and haven't gone below it since then-no matter if you're looking for coal or gas-powered electricity generation!

The lead analyst on issues surrounding sustainable development (and its relation with climate change) said that these rising costs will likely continue indefinitely because we need time before any changes can be made in order not to damage our planet too much while trying to find new solutions together. Analysts expect the price will continue to rise.

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