LSEG: Global Carbon Market Value Reached Record $949B In 2023

LSEG: Global Carbon Market Value Reached Record $949B In 2023 - Carbon Herald
Source: Anna Nekrashevich via Pexels

According to analysts at the London Stock Exchange Group (LSEG), the value of the world’s carbon market reached a whopping 881 billion euros (~$948.75 billion) in 2023.

The announcement from LSEG came on Monday and is a very encouraging sign for climate mitigation, suggesting a rising interest in carbon trading. 

A number of different countries around the world have already launched their emissions trading systems (ETS) with the aim of putting a price on CO2 emissions and pushing businesses to transition to low-carbon solutions and practices. 

2023 saw the trade of roughly 12.5 billion metric tons of so-called carbon permits globally, which is similar to the figures of the year before.

However, the price on carbon emissions has gone up substantially, reaching record highs, particularly with Europe and North America driving up the total market value. 

The EU’s ETS proved to be the most valuable, LSEG says, with its worth reaching roughly 770 billion euros (~$824 billion) last year, representing a 2% increase compared to figures from 2022 and a massive 87% of the global market value.

Relevant: EU Publishes Proposals For 2040 Emission Reduction Targets And Industrial Carbon Management

The EU’s ETS market value is due to the increase in price of carbon permits, which, despite falling toward the end of the year, went above 100 euros (~$107) per ton of CO2 in February 2023, marking a record high.

Currently, the price is continuing its downtrend and has fallen just under 60 euros (~$64) per ton, which, the report says, will likely continue to be the case due to overall slowed economic growth in the bloc.

Carbon prices in both North America and in China also enjoyed record highs in 2023, with the former reaching up to $39 per ton and 80.51 yuan (~$11.19), respectively. 

Read more: S&P Global Says EU Carbon Prices Will Continue To Fall In 2024

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