Global carbon market grew 20% in 2020
ECONOMY & POLICY

Global carbon market grew 20% in 2020

The total value of global carbon markets grew 20% in 2020, reaching a record $275.84 billion, according to the annual Refinitiv Carbon Market Year in Review.

__________

The latest Refinitiv Carbon Market Year in Review indicates that the carbon market grew for the fourth consecutive year of record growth and more than five times the value in 2017.

Most of the increase in value came from the European Emissions Trading System (EU ETS) which accounted for nearly 90% of global value and most of the traded volume (totalling 10.3 billion allowances) in 2020.

Over eight billion emission allowances changed hands in the European carbon market in 2020, nearly 20% more than in 2019, despite an estimated 14% emissions drop in the EU ETS sectors.

The North American regional carbon markets━the Western Climate Initiative (WCI) and Regional Greenhouse Gas Initiative (RGGI) followed a similar pattern to Europe, with prices crashing in March and April but recovering by Q4 2020 on expectations of policy changes resulting in tighter future carbon market balances. The WCI and RGGI grew by 16% in terms of overall market value from 2019, to €22 billion ($26.50 billion) and €1.7 billion ($2.07 billion), respectively.

Other markets followed a similar pattern – prices in North America’s Western Climate Initiative (WCI) and Regional Greenhouse Gas Initiative (RGGI) as well as New Zealand’s ETS crashed in March and April but recovered by Q4 2020. The WCI and RGGI grew by 16% in terms of overall market value from 2019, to €22 billion and €1.7 billion, respectively. New Zealand’s market value rose to €516 million ($621.55 million) on higher average allowance prices, nearly 20% higher than in 2019.

South Korea’s carbon market experienced a major price crash but did not recover to pre-pandemic levels despite market tightening reforms coming into effect in 2021. A volume surge in this otherwise low-transaction market made for a total value 10% higher than 2019, at ~€829 million ($998.58 million).

The Chinese government published long-awaited rules for China’s national ETS in Q4 2020, after President Xi Jinping’s unexpected pledge in September to step up the climate change mitigation targets of the world’s biggest emitter. Despite pandemic-induced lower demand, elevated average allowance prices led to a total combined market of €257 million ($309.57 million), slightly higher compared to 2019.

The total value of global carbon markets grew 20% in 2020, reaching a record $275.84 billion, according to the annual Refinitiv Carbon Market Year in Review. __________ The latest Refinitiv Carbon Market Year in Review indicates that the carbon market grew for the fourth consecutive year of record growth and more than five times the value in 2017. Most of the increase in value came from the European Emissions Trading System (EU ETS) which accounted for nearly 90% of global value and most of the traded volume (totalling 10.3 billion allowances) in 2020. Over eight billion emission allowances changed hands in the European carbon market in 2020, nearly 20% more than in 2019, despite an estimated 14% emissions drop in the EU ETS sectors. The North American regional carbon markets━the Western Climate Initiative (WCI) and Regional Greenhouse Gas Initiative (RGGI) followed a similar pattern to Europe, with prices crashing in March and April but recovering by Q4 2020 on expectations of policy changes resulting in tighter future carbon market balances. The WCI and RGGI grew by 16% in terms of overall market value from 2019, to €22 billion ($26.50 billion) and €1.7 billion ($2.07 billion), respectively. Other markets followed a similar pattern – prices in North America’s Western Climate Initiative (WCI) and Regional Greenhouse Gas Initiative (RGGI) as well as New Zealand’s ETS crashed in March and April but recovered by Q4 2020. The WCI and RGGI grew by 16% in terms of overall market value from 2019, to €22 billion and €1.7 billion, respectively. New Zealand’s market value rose to €516 million ($621.55 million) on higher average allowance prices, nearly 20% higher than in 2019. South Korea’s carbon market experienced a major price crash but did not recover to pre-pandemic levels despite market tightening reforms coming into effect in 2021. A volume surge in this otherwise low-transaction market made for a total value 10% higher than 2019, at ~€829 million ($998.58 million). The Chinese government published long-awaited rules for China’s national ETS in Q4 2020, after President Xi Jinping’s unexpected pledge in September to step up the climate change mitigation targets of the world’s biggest emitter. Despite pandemic-induced lower demand, elevated average allowance prices led to a total combined market of €257 million ($309.57 million), slightly higher compared to 2019.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement