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Carbon Emissions Trading Markets Worldwide

Carbon emissions have been traded, albeit at minor levels, in the over-the-counter (OTC) market since the 1990s. In recent years, significant global governmental involvement in the stabilization of the concentration of atmospheric greenhouse gases has facilitated tremendous growth in the market for carbon emissions trading. The value of the carbon market has grown from $727 million in 2004 to $118 billion in 2008.

In addition to the foundational regulatory organizations that have established the framework of the market, and the pre-requisite buyers and sellers, the magnitude and evolving complexity of the global carbon markets has attracted numerous intermediaries, such as brokers, exchanges, aggregators, and financiers, as well as other peripheral participants such as validation and verification, information and analysis, legal, and consulting service providers. Opportunities for market participants are expected to continue to increase as the value of global carbon markets are forecast to grow by 68% per year to $669 billion in 2013.

Carbon Emissions Trading includes a broad review of the carbon market. The report provides a discussion of the mechanisms employed in the carbon market and an overview of the market structure and participants. Market demand for carbon emissions allowances and offsets is quantified and projections for growth in demand are provided, along with the key factors influencing this growth. The report also provides profiles of companies active in the carbon market.

Report Methodology

The information in Carbon Emissions Trading is based on primary and secondary research. Primary research entailed in-depth interviews with firms involved in the development of carbon emissions trading regulation, financial companies, and consultants to the industry to obtain information on the developing market and factors shaping the industry. Secondary research entailed data gathering from relevant sources, including government and industry publications, company literature and corporate annual reports.

What You’ll Get in This Report

Carbon Emissions Trading contains important insights and projections regarding the future of this market around the world. No other market research report provides both the comprehensive analysis and data that Carbon Emissions Trading offers. Subscribers will benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You’ll Benefit From This Report

If your company is already doing business in the carbon market, or is considering entering the marketplace, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current global market for carbon emissions allowances and offsets, as well as projected markets and trends through 2013.

This report will help:

  • Marketing managers understand the market forces shaping the carbon market and identify market opportunities.

  • Research and development professionals stay on top of competitor initiatives and explore demand for carbon emissions allowances and offsets.

  • Business development executives understand the dynamics of the market and identify possible partnerships.

  • Information and research center librarians provide market researchers, product managers, and other colleagues with the vital information they need to do their jobs more effectively.


Market Insights: A Selection From The Report


Market Size and Segmentation

The global carbon market has grown rapidly over the past five years and recorded nearly $118 billion of carbon emissions transactions in 2008.  This represents a 256% compound annual growth rate over the period.  The market value of transaction has grown exponentially as both the volume of carbon emissions traded and the price per unit of carbon emissions have grown significantly over the period.

The price of carbon dioxide emissions traded increased by 49% per year from an average of $5.86 per tonne in 2004 to $28.65 in 2008.  Simultaneously, the volume of carbon emissions traded, measured in millions of tones of carbon dioxide (MtCO2e), has increased by 139% per year from 125 MtCO2e in 2004 to 4,104 MtCO2e in 2008.

The compliance-driven segment of the market accounted for over 96% of the overall volume of the global carbon market in 2008; the share of the voluntary markets in value terms was less than 1% of the overall carbon market in 2008.

Carbon Market Projections

The transaction value of the international carbon market has grown exponentially in its first decade of existence.  Pending the outcome of future regulatory and policy decisions, further strong growth is expected as the global economy recovers from the current economic recession.

In 2009, the volume of carbon traded on the global markets is expected to grow to 5,648 MtCO2e, a 38% increase over 2008 volume.  However, given the recent downturn in the global economy and the significant decline in the prices of carbon units traded, the value of the global carbon markets is expected to decrease by 29% to under $84 billion in 2009.

Prices in the carbon markets are expected to recover post-2009.  Bolstered by continued growth in volume, the global carbon market value is projected to grow by 68% per year from under $84 billion in 2009 to $669 billion in 2013.

In the News


Global Carbon Market to Achieve $669 billion in 2013

New York, April 14, 2009 - The global carbon market, which consists of the buying and selling of carbon emission allowances or offsets, is projected to ride a half-decade long wave of monolithic growth to reach $669 billion in 2013, according to Carbon Emissions Trading Markets Worldwide, a new report from industrial market research publisher SBI. Bolstered by continued growth in volume and the anticipated recovery of economies worldwide in years to come, the global carbon market value is forecast to grow by 68% per year to improve upon the less than $84 billion SBI expects the market to achieve during the recession-riddled months of 2009.

The likely participation of the United States through the enactment of a federal cap and trade system by 2012 is also a significant factor in the projected growth of the carbon markets. Transactions conducted under such a compliance based system are expected to create the world’s second largest carbon market, valued at nearly $117 billion by 2013. Other positive factors include higher prices, greater market turnover, and the creation of new carbon markets.

SBI research reveals that the market value of transaction has grown exponentially as both the volume of carbon emissions traded and the price per unit of carbon emissions have swelled significantly since 2004. As a result the global carbon market achieved a 256% compound annual growth rate (CAGR) over the past five years.

The market recorded nearly $118 billion of carbon emissions transactions in 2008 alone. However, the market is expected to decrease by 29% in 2009 as a result of the decline in the prices of carbon units traded, a phenomenon widely linked to the economic downturn. Yet SBI notes that the projected decline isn’t all bad news, at least not for savvy investors with an eye towards the future.

“This temporary blip in an otherwise burgeoning industry presents an exceptional opportunity for investment as prices in the carbon markets are expected to rebound significantly post-2009,” says Shelley Carr, associate publisher of SBI.

Carbon Emissions Trading Markets Worldwide provides a broad review of the carbon market. The report includes a discussion of the mechanisms employed in the carbon market and an overview of the market structure and participants. Market demand for carbon emissions allowances and offsets is quantified and projections for growth in demand are provided, along with the key factors influencing said growth. Profiles of companies active in the carbon market are also supplied.

About SBI

SBI (Specialists in Business Information) publishes research reports in the industrial, energy, building/construction, automotive/transportation and packaging markets. SBI also offers a full range of custom research services.

 

  • Executive Summary
    • Carbon Market Framework
    • Compliance Market Regulatory Framework
      • The Kyoto Protocol
      • European Union Emissions Trading System
      • New South Wales Greenhouse Gas Abatement Scheme
      • Regional Greenhouse Gas Initiative
    • Voluntary Market Framework
      • Chicago Climate Exchange
      • Over the Counter Market
    • Industry Structure and Participants
    • Carbon Exchanges
      • Table Carbon Exchanges and Trading Platforms, 2008
      • Table Currencies Traded on Global Carbon Exchanges and Trading Platforms, 2008
    • Market Size and Segmentation
    • Carbon Market Projections
    • Report Scope
    • Report Format
    • Report Methodology
    • Abbreviations
      • Table Abbreviations Utilized in Report
  • Carbon Market Framework
    • Overview
    • Carbon Market Framework
    • Compliance Market
      • Table Emissions Trading Systems in Compliance Market, 2008
      • Regulatory Framework
      • United Nations Framework Convention on Climate Change
        • Table UNFCCC Annex I Nations
      • The Kyoto Protocol
        • Table Kyoto Protocol Greenhouse Gas Emissions Targets (% change from 1990 level)
      • Clean Development Mechanism
      • Joint Implementation Mechanism
      • International Emissions Trading
      • European Union Emissions Trading System
      • Keidanren Voluntary Action Plan
      • New South Wales Greenhouse Gas Abatement Scheme
      • Regional Greenhouse Gas Initiative
      • Compliance Market Currencies
        • Table Emissions Equivalencies of Currencies Traded in Compliance Market, 2008
        • Table Currencies Traded in Compliance Market, 2008
      • Certification Standards in Compliance Market
      • Registries in the Compliance Market
        • Table Registries Utilized in Compliance Market, 2008
    • Voluntary Market
      • Chicago Climate Exchange
      • Over the Counter Market
      • Voluntary Market Currencies
        • Table Currencies Traded in Voluntary Market, 2008
      • Certification Standards in Voluntary Market
        • Table Voluntary Emissions Standards, 2008
      • Chicago Climate Exchange Standard
      • Voluntary Carbon Standard
      • VER+ Standard
      • Climate, Community and Biodiversity Standard
      • Plan Vivo
      • The Gold Standard
      • Greenhouse Friendly Standard
      • Registries in Voluntary Market
        • Table Carbon Accounting Registries in the Voluntary Carbon Market, 2008
  • Industry Structure
    • Overview
    • Industry Structure and Participants
      • Carbon Market Framework
      • Regulatory Bodies
      • United Nations Climate Change Secretariat
      • United Nations Clean Development Mechanism Executive Board
      • Joint Implementation Supervisory Committee
      • Compliance Committee
      • Designated National Authorities
      • Designated Operational Entity
      • Non-Governmental Organizations
      • Local Authorities
      • Suppliers
      • Project Developers
        • Table Representative Project Developers, 2008
      • Intermediaries
      • Exchanges
        • Table Carbon Exchanges and Trading Platforms, 2008
        • Table Currencies Traded on Global Carbon Exchanges and Trading Platforms, 2008
        • Table Sample Voluntary Emissions Reductions Certification Standards, 2008
      • Europe
        • Table European Carbon Exchanges and Trading Platforms, 2008
      • European Climate Exchange
      • Nordic Power Exchange
      • European Energy Exchange
      • Energy Exchange Austria
      • BlueNext
      • Climex
      • North America
        • Table North American Carbon Exchanges and Trading Platforms, 2008
      • Chicago Climate Exchange
      • The Green Exchange
      • Montreal Climate Exchange
      • South America
        • Table South American Carbon Exchanges and Trading Platforms, 2008
      • Brazil Mercantile Futures Exchange
      • Asia and Australia
        • Table Asian and Australian Carbon Exchanges and Trading Platforms, 2008
      • Asia Carbon Exchange
      • Multi-Commodity Exchange of India
      • National Commodity & Derivatives Exchange
      • The Australian Climate Exchange
      • Brokers
        • Table Representative Carbon Market Brokers, 2008
      • Aggregators
        • Table Representative Offset Aggregators, 2008
      • Financial Institutions
        • Table Representative Private Sector Financial Companies Active in Carbon Market, 2008
      • Multilateral Development Banks
      • Carbon Funds
      • Carbon Finance Product Offerings
      • Buyers
      • Compliance Market Buyers
      • Voluntary Market Buyers
      • Industry Services
      • Validation and Verification Services
      • Information, Analysis, and Legal Advisory Services
        • Table Representative Consulting Firms Active in Carbon Market, 2008
        • Table Representative Legal Advisory Service Companies Active in Carbon Market, 2008
  • Market Sizing and Segmentation
    • Overview
    • Market Size and Segmentation
    • Compliance Market Segments
      • International Emissions Trading
      • European Union Emissions Trading System Market
      • Clean Development Mechanism Market
      • Joint Implementation Market
      • New South Wales Greenhouse Gas Abatement Scheme Market
      • Regional Greenhouse Gas Initiative Market
    • Voluntary Market Segments
      • Chicago Climate Exchange
      • Over the Counter Market
    • Market Price Trends
    • Carbon Market Projections
      • Kyoto Protocol Post 2012
      • UNFCCC Conference in Poznan
      • European Union Emissions Trading System
      • Key Drivers of EUA Demand and Price
      • Clean Development Mechanism Market
      • Joint Implementation Market
      • North American Markets
      • California Global Warming Solutions Act of 2006
      • Hawaii Global Warming Solutions Act of 2007
      • Minnesota Next Generation Energy Act of 2007
      • Regional Greenhouse Gas Initiative
      • Western Regional Climate Action Initiative
      • Midwestern Greenhouse Gas Accord
      • Potential United States Federal Cap and Trade System
      • Australian Carbon Market
      • Japan
      • The Chicago Climate Exchange
      • Over-the-Counter Market
  • Company Profiles
    • Overview
      • Table Companies Profiled
    • 3 Degrees Incorporated
      • Table 3 Degrees Incorporated Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Company News
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • APX Incorporated
      • Table APX Incorporated Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Company News
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Baker & McKenzie
      • Table Baker & McKenzie Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Blue Source
      • Table Blue Source Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Company News
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • CantorCO2e LLC
      • Table CantorCO2e Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Company News
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Climate Focus
      • Table Climate Focus Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Credit Suisse
      • Table Credit Suisse Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Company News
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • EcoSecurities Group plc
      • Table EcoSecurities Group Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Equator LLC
      • Table Equator LLC Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Evolution Markets
      • Table Evolution Markets Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Fortis
      • Table Fortis Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Company News
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • MGM International
      • Table MGM International Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Company News
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Natsource
      • Table Natsource Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • RNK Capital LLC
      • Table RNK Capital LLC Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Sterling Planet, Incorporated
      • Table Sterling Planet, Incorporated Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • Tradition Financial Services / TFS Energy / TFS Green
      • Table Tradition Financial Services/TFS Energy/TFS Green Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes
    • TUV SUD America
      • Table TUV SUD America Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Innovation
      • Outlook
      • Personnel Changes

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