If yesterday we posted about EU's Climate Action Progress Report 2022 , that indicated greater demand for allowances in the EU Emissions Trading System (EU ETS), contributing to an increase in the carbon price - from less than EUR 10 / ton in 2018 to close to EUR 100 in 2022 - today its about a Refinitiv's report analysing the whole World. And the outcome is the same: Global carbon markets value is on exponential growth and hit record EUR 865 bln in 2022.
Since February 1, 2021 Refinitiv became part of the London Stock Exchange Group (LSEG), a more than 300-year-old organisation. As such, it is one of the world’s largest providers of infrastructure and financial markets data. Inclusing sustainable finance.
As you know, emissions trading schemes are market-based tools meant to limit greenhouse gas emissions. They put a cap on the amount countries or companies can emit, and if they exceed those limits, they can buy permits from others.
The world's biggest carbon market, the EU ETS launched in 2005, was worth around EUR 751 billion in 2022. It represents 87% of the global total.
According to the report, the two regional carbon markets in North America - the Western Climate Initiative and the Regional Greenhouse Gas Initiative - were worth over 60 billion euros , while China's national emissions trading scheme, launched in mid-2021, was worth EUR 504 million last year.
We quote Refinitiv: "More ambitious climate targets are also contributing to the record high prices, as countries/regions tighten their carbon caps to help achieve those targets ... The prices of those permits, however, were high so the total global carbon market turnover – the number of transactions times their price – grew nearly 14 percent compared with 2021. That’s the sixth straight year of growth."
Click at the image below to read more and access the report (upon registration).
