June 24, 2024

Emissions Trading Market Propelled By Growing Concerns About Environmental Pollution

The emissions trading market involves trading of carbon credits and allows industries and organizations to offset their emissions by purchasing credits from others who have emitted less than their quota. It plays a crucial role in regulating greenhouse gas emissions from various industrial sectors such as power, oil & gas, cement among others to achieve global climate goals. 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 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Growing concerns about environmental pollution and climate change have boosted the implementation of carbon pricing mechanisms such as emissions trading schemes across the globe. Many countries and regions have initiated cap-and-trade programs by setting firm emissions caps that decrease over time to curb greenhouse gas emissions from major industries. For instance, the European Union Emissions Trading System is considered the world’s largest carbon market covering 31 countries. Increasing stringency of emissions regulations is expected to drive higher demand for emissions credits in the coming years.

SWOT Analysis
Strength
: The emissions trading market allows companies to find the most cost-effective way to reduce emissions. Companies can purchase carbon offsets from other entities that have over-complied with emission limits.

Weakness: There is a possibility of over-allocation of emission allowances, which can undermine the environmental goals. Verification and validation of emission reductions can also be challenging.

Opportunity: Rising concerns about climate change is driving the implementation of emissions trading programs across different regions and sectors. New projects in renewable energy and energy efficiency also present opportunities within this market.

Threats: Stringent regulations and policies around carbon emissions can negatively impact certain industries. Geopolitical issues among countries can potentially slow down cooperation on climate agreements. Technological disruptions may reduce the need for traditional emission sources over time.

Key Takeaways
The Global Emissions Trading Market Scope is expected to witness high over the forecast period of 2024 to 2030. The market size is projected to reach US$ 385.69 Bn by 2024.

Regionally, Europe dominates the current emissions trading market with the EU ETS being the largest and most established program globally. The emissions trading schemes in China, California, and Northeast US regions are also growing at a significant pace.

Key players operating in the emissions trading market include Johnson & Johnson Services, Inc., 3M, Baxter, Coloplast A/S, Integra LifeSciences, Medtronic, Omeza, Cardinal Health, Bactiguard AB, Noventure, Essity, Schulke & Mayr GmbH, Smith & Nephew Plc., Convatec Group PLC, SANUWAVE and SANUWAVE Health, Inc., EO2 Concepts, Wound Care Advantage, LLC., Healthium Medtech Limited, Arch Therapeutics, Inc., Hydrofera, Sanara MedTech Inc., Axio Biosolutions Pvt Ltd., and Gentell, Inc. Majority of these players are focusing on acquisitions and partnerships to expand their presence in different regional emissions trading schemes.

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