Emissions trading allows companies and governments to trade pollution permits in an effort to reduce the overall emissions of pollutants and greenhouse gases in a cost-effective manner. It gives incentives to businesses and organizations for reducing their greenhouse gas emissions or waste pollution. 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:
Growing concern about the adverse impact of climate change has boosted the Emissions Trading Market Size. The increasingly stringent regulations by governments worldwide to curb greenhouse gas emissions and transition to cleaner sources of energy are propelling more organizations to opt for emissions trading schemes. Participating in emissions trading allows companies flexibility and cost-savings in meeting their emission reduction targets while supporting the larger goal of mitigating climate change.
SWOT Analysis
Strength: Emissions trading market provides incentives for industrial operations and power plants to reduce emissions that would be otherwise difficult and more expensive to reduce. It also caps total emissions to help countries meet their targeted emissions levels.
Weakness: There is complexity involved in accurately measuring, monitoring, and verifying emissions from all emission sources covered. Additionally, limited participation from developing countries poses challenges to the global effectiveness of emissions trading programs.
Opportunity: Linking of different emissions trading schemes across regions allows for greater allowance trading and cost-effective compliance. Developing countries can implement emissions trading programs over time to control their emissions within set targets.
Threats: Stringency of emissions regulations can be weakened due to changing political priorities. Growing adoption of renewable energy reduces demand for emissions allowances and may lower their prices.
Key Takeaways
The Global Emissions Trading Market is expected to witness high growth. Emissions trading programs provide a cost-effective strategy for industries and businesses to lower greenhouse gas emissions and meet environmental compliance obligations.
Regional analysis: Europe currently accounts for the largest share of the global emissions trading market due to the well established EU Emissions Trading System. The EU ETS covers around 11,000 power plants and industrial facilities in 31 countries. Asia Pacific region is expected to grow at a high pace during the forecast period owing to implementation of emissions trading schemes in China, South Korea, and potential expansion of carbon markets in other countries.
Key players: 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).These players offer technological platforms ranging from emissions measurement, verification, reporting and allowance trading solutions catering to industries and regulators.
About Author – Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile