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PortuguêsGlobal carbon markets hit record values with 38 operational trading systems covering 23% of emissions. Emerging economies drive expansion while established markets evolve with new mechanisms. Revenues exceeded $100 billion, but prices remain too low for climate targets.
Carbon Trading Boom Accelerates
Global carbon markets have surged to unprecedented levels in 2025, with trading volumes and values hitting record highs. According to the latest ICAP Status Report, there are now 38 operational emissions trading systems (ETS) worldwide, covering 23% of global greenhouse gas emissions. This represents a dramatic expansion from just a decade ago when carbon markets covered only 7% of emissions.
New Players Drive Expansion
Emerging economies are leading this growth, with Brazil, India, Indonesia, Türkiye, and Vietnam implementing innovative carbon pricing mechanisms. These new systems increasingly incorporate domestic offsetting provisions and crediting mechanisms. China has significantly expanded its national ETS beyond the power sector to include steel, cement, and aluminum production, adding approximately 5% to global covered emissions.
Revenue Reaches $100 Billion
The World Bank reports carbon pricing revenues reached $104 billion in 2023, with over half directed toward climate and nature programs. "Carbon pricing can be one of the most powerful tools to help countries reduce emissions," stated World Bank Senior Managing Director Axel van Trotsenburg. Established markets like the EU and UK are expanding coverage while implementing Carbon Border Adjustment Mechanisms (CBAMs) to address competitiveness concerns.
Market Infrastructure Evolves
New trading platforms and financial products have emerged to support this growth. Digital carbon registries and blockchain-based trading solutions are increasing market transparency and accessibility. Voluntary carbon markets have also matured, with corporations purchasing credits to meet net-zero commitments. "The momentum for emissions trading continues, particularly in emerging economies," noted Stefano De Clara, Head of the ICAP Secretariat.
Price Variations Persist
Significant price disparities remain across different systems, ranging from $7/ton in China to over $100/ton in some compliance markets. The EU's Carbon Border Adjustment Mechanism is pushing more jurisdictions to implement carbon pricing for exposed sectors like steel and cement.
Challenges Remain
Despite progress, less than 1% of global emissions face prices high enough to meet Paris Agreement targets. Carbon leakage concerns continue to drive policy innovations like CBAMs. Experts emphasize that revenue recycling - using carbon market proceeds to fund clean energy transitions and offset energy costs for vulnerable populations - remains critical for public acceptance.
Future Outlook
With 20 additional ETS under development, carbon markets are projected to cover over 30% of global emissions by 2030. Aviation and shipping sectors are increasingly being incorporated into existing frameworks. However, political commitment must strengthen to close the gap between climate pledges and implementation.
