February 9, 2025
Emissions Trading Market

Our Planet’s Future Is Driven By The Emissions Trading Market

The emissions trading market involves mechanisms setup by regulatory authorities to limit greenhouse gas emissions by capping the total amount of emissions allowed and enabling trading of emission permits. Organizations can buy permits if their actual emissions exceed their allocated limit, or sell permits if their emissions are less than the allocated quota. This incentivizes emission reduction activities and investment in cleaner technologies. The market also helps nations meet international commitments under global climate change accords in a cost-effective manner. Rapid industrialization and urbanization in developing nations have led to increased energy demands, boosting the need for such market-based mechanisms to control polluting activities. 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:

Linking of regional emissions trading systems is one of the key trends witnessed in recent years. This involves connecting compliant carbon markets to expand trading opportunities and stimulate greater investment in low-carbon solutions. For instance, linking the EU ETS with Switzerland’s emissions trading market in 2020. Greater private sector participation is another notable trend with more companies voluntarily purchasing offsets or allowances to achieve net-zero goals. Advancements in blockchain-based carbon accounting platforms are also enabling higher transparency and efficiency in carbon credit issuance and exchange. Increased emphasis on nature-based solutions like reforestation, soil carbon projects and blue carbon initiatives will also support the growth of the overall market over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the emissions trading market is moderate. High capital requirements for infrastructure development and the presence of established players pose entry barriers for new players.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of buyers in the market leading to increased competition among existing players. Buyers can negotiate on price and demand higher quality services.

Bargaining power of suppliers: The bargaining power of suppliers is low as the market has multiple global suppliers for credits and allowances. Switching costs are also low for buyers.

Threat of new substitutes: The threat of substitutes is low as emissions trading is the most viable solution adopted by governments worldwide for managing emissions. There are limited alternatives available.

Competitive rivalry: The competitive rivalry in the market is high due to the presence of several global and regional players offering differentiated products and services. Players compete based on pricing, quality, and new offerings.

Key Takeaways

The Global Emissions Trading Market Size is expected to witness high growth.

Regional analysis: Europe dominates the emissions trading market currently due to long-established regulatory frameworks and markets in the EU ETS and UK ETS. The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to the expansion of emissions trading schemes in countries like China, South Korea, and Japan.

Key players operating in the market include 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). Medtronic plc (Ireland) is a prominent player in the market with a diversified product portfolio and presence in over 160 countries worldwide.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it 
Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

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