Emission trading schemes involve capping total emissions and requiring companies or other groups to hold permits or allowances to emit greenhouse gases. Emissions trading allows market mechanisms to drive industrial changes toward lower emissions, an approach that is expected to minimize the cost of reducing emissions compared to traditional command-and-control regulation. Emissions trading programs aim to combat climate change by capping and reducing emissions of carbon dioxide and other greenhouse gases cost-effectively. The global Emissions Trading Market is estimated to be valued at US$ 334.8 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growth of the Emissions Trading Market is expected to be driven by the increasing regulations to curb carbon emissions and set emission reduction targets. Major emitters are scaling up their emission reduction plans to meet their Nationally Determined Contribution goals under the Paris Agreement. The market will also witness opportunities from emerging compliance mechanisms established at the sub-national level like the Regional Greenhouse Gas Initiative (RGGI) in the US. Trading of carbon offsets is another trend gaining traction as it provides flexibility to regulated entities to meet their targets. Various voluntary carbon markets are also emerging to cater to the increasing demand from corporate entities looking to neutralize their carbon footprint.
Segment Analysis
The global emission trading market comprises two key segments - carbon credits and carbon offsets. Among these, the carbon credits segment dominates currently with over 60% share owing to stringent emission norms in developed markets across North America and Europe. The segment is further segmented into EU emission trading scheme and voluntary emission reduction projects. The EU emission trading scheme dominates presently with over 80% share as it is the largest and oldest cap-and-trade system implemented by the European Union in 2005.
Key Takeaways
The Global Emissions Trading Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by stringent emission regulations worldwide and increasing carbon pricing initiatives across regions.
Regional analysis: The European region dominates the global emissions trading market currently with over 50% share. Presence of the mature EU emission trading scheme drives the leadership of the region. However, the Asia Pacific region is expected to offer the highest growth opportunities during the forecast period supported by the introduction of emissions trading schemes in large economies like China, South Korea and establishment of carbon markets across several Southeast Asian countries.
Key players operating in the emissions trading market are Medtronic plc (Ireland), Stryker Corporation (U.S.), Brainlab AG (Germany), B. Braun Melsungen AG (Germany), Scopis GmbH (Germany), Fiagon AG (Germany), Karl Storz GmbH & Co. KG (Germany), Amplitude Surgical (France), Zimmer Biomet Holdings, Inc. (U.S.), and Siemens Healthineers (Germany). The players adopt strategies such as partnerships, product launches and collaborations to stay competitive in the high growth emissions trading industry.
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https://healthcarelatesteditionnews.blogspot.com/2023/12/emissions-trading-market-growth-is.html
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