July 14, 2024
Emissions Trading Market

Emissions Trading Market Is Estimated To Witness High Growth Owing To Stringent Government Regulations And Advancements in Carbon Capture and Storage Technologies

The emissions trading market is estimated to be valued at US$ 334.80 billion in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The emissions trading market refers to the buying and selling of greenhouse gas emissions permits. This market allows companies to trade emissions allowances, encouraging the reduction of overall emissions. Governments worldwide are implementing stringent regulations to curb greenhouse gas emissions, which is driving the market growth. Furthermore, advancements in carbon capture and storage technologies are also contributing to the market expansion. These technologies help in capturing and storing emissions, reducing the overall carbon footprint. The emissions trading market offers various business opportunities for companies to reduce their emissions and comply with regulatory standards effectively.

Market Dynamics:

The Emissions Trading Market Growth can be attributed to two primary drivers. Firstly, the increasing emphasis on reducing greenhouse gas emissions to mitigate climate change is driving the demand for emissions trading. Governments worldwide are implementing regulations and carbon pricing mechanisms to incentivize emission reduction. Secondly, advancements in carbon capture and storage technologies are providing significant opportunities for the emissions trading market. These technologies enable the capture and storage of carbon dioxide, reducing the environmental impact of industries. Overall, the emissions trading market is poised for high growth due to the combined effect of stricter regulations and technological advancements in emission reduction.

Segment Analysis:

The emissions trading market can be segmented based on the type of trading scheme, organization size, and end-use industry. The dominating sub-segment in the market is the cap and trade scheme. This segment holds a significant share in the market due to its ability to effectively regulate emissions by establishing a cap on the total emission levels and enabling the trading of emission allowances. Cap and trade schemes are widely adopted by various industries, especially in regions with stringent emission regulations, such as Europe and North America. The dominance of this sub-segment can also be attributed to the increasing global focus on mitigating climate change and reducing greenhouse gas emissions.

PEST Analysis:

Political:

Governments across the globe are implementing stringent regulations to control greenhouse gas emissions and combat climate change. This has led to the implementation of emissions trading schemes in several countries, thus positively impacting the growth of the emissions trading market.

Economic:

The market is experiencing growth due to the economic benefits associated with emissions trading. It provides companies the flexibility to trade emission allowances, thereby reducing costs for emission reductions and incentivizing the adoption of cleaner technologies.

Social:

Growing awareness among the general population regarding the adverse effects of greenhouse gas emissions has led to a demand for more stringent regulations and measures to reduce emissions. This social consciousness is driving the growth of the emissions trading market.

Technological:

Technological advancements in monitoring and reporting systems have made it easier for companies to accurately measure and report their emissions. This has contributed to the growth of the emissions trading market by enabling efficient tracking and trading of emission allowances.

Key Takeaways:

The Emissions Trading Market is expected to witness high growth, exhibiting a CAGR of 24% over the forecast period (2023-2030), due to increasing government regulations to control emissions and combat climate change. The cap and trade scheme segment is dominating the market due to its effectiveness in regulating emissions and enabling trading of emission allowances. Regionally, Europe is the fastest-growing and dominating region in the emissions trading market, with countries like Germany and the UK implementing robust emissions trading schemes. Other key players operating in the market include BP Plc, Royal Dutch Shell Plc, Total SE, Chevron Corporation, ExxonMobil Corporation, and Engie SA. These players are actively involved in the trading of emission allowances and are leveraging their expertise to capitalize on the growing demand for emission reduction solutions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

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

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

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