Emissions trading, also known as cap and trade, is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. It allows companies to trade emission allowances which allow them to emit a fixed amount of specific pollutants. The power generation, oil & gas, industrial, and manufacturing sectors are major participants in emissions trading schemes to comply with environmental regulations and reduce their carbon footprint. 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 Dynamics:

The emissions trading market is projected to witness significant growth owing to stringent emission norms imposed by regulatory bodies across the globe to curb environmental pollution. According to the Paris Agreement, countries committed to reduce their nationwide emissions and limit global temperature rise well below 2°C. This has increased adoption of emissions trading schemes among developed and developing nations to lower their industrial emissions cost effectively. Moreover, the growing prominence of cap-and-trade programs in the European Union, China, South Korea, California, and Quebec is augmenting the demand for emissions allowances in the respective regions. The increasing participation of small and medium-sized companies in emissions trading to meet environmental targets will further fuel market expansion over the forecast period.

SWOT Analysis

Strength: The emissions trading market allows companies to fulfill their regulatory obligations in a cost-effective manner. It provides flexibility to companies in achieving emission reduction targets. The market-based mechanism encourages innovation and investments in low-carbon technologies.

Weakness: The market is subject to volatile price fluctuations depending on the demand-supply dynamics. Accurate measurement and verification of emission reductions can be challenging. Administrative and transaction costs associated with the market can be relatively high.

Opportunity: Stringent emission norms worldwide are expected to drive demand. Expanding coverage of sectors like transportation, waste, and buildings offers growth opportunities. Linking of regional emission trading schemes can create a larger unified carbon market.

Threats: Changes in regulatory policies and support for offsets/credits can impact market conditions. Economic slowdowns may lower demand from heavy industries in the short term. Political and legal challenges against carbon pricing pose a threat.

Key Takeaways

The Global Emissions Trading Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by stringent emission regulations around the world. The market size is projected to reach US$ 334.8 Billion in 2023.

Regional analysis: Europe dominates the global emissions trading market currently with the EU ETS being the largest compliance carbon market globally. China has also emerged as a major emissions trading market driven by the launch of its national emissions trading scheme in 2021. Asia Pacific region is expected to witness fastest growth in the coming years led by carbon markets in countries like Korea, Japan.

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 are focused on expanding their global footprints and partnering with governments to encourage low carbon growth.

Get More Insights Here

https://www.trendingwebwire.com/emissions-trading-market-size-share-growth-outlook-2023/