Emissions Trading Market Driven by Strict Carbon Emission Norms

The Emissions Trading Market is a cost-effective policy tool that incentivizes facilities to reduce emissions. Established in 2005, the Emissions Trading Market allows governments and companies to cost-effectively reduce greenhouse gas emissions. It works on the 'cap and trade' principle where a cap is placed on the total amount of a certain greenhouse gas that can be emitted. Companies or other groups are allocated emission allowances which they can sell to or purchase from one another as needed. The increasing focus of governments worldwide on controlling emissions through regulations like carbon taxes and emissions standards is driving the demand for emissions trading mechanisms.
The global Emissions Trading Market is estimated to be valued at US$ 385.69 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period from 2024 to 2031.