Global carbon market grew 20% in 2020
03 Feb 2021
2 Min Read
Editorial Team
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鈹乼he 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 鈧�22 billion ($26.50 billion) and 鈧�1.7 billion ($2.07 billion), respectively.
Other markets followed a similar pattern 鈥� prices in North America鈥檚 Western Climate Initiative (WCI) and Regional Greenhouse Gas Initiative (RGGI) as well as New Zealand鈥檚 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 鈧�22 billion and 鈧�1.7 billion, respectively. New Zealand鈥檚 market value rose to 鈧�516 million ($621.55 million) on higher average allowance prices, nearly 20% higher than in 2019.
South Korea鈥檚 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 ~鈧�829 million ($998.58 million).
The Chinese government published long-awaited rules for China鈥檚 national ETS in Q4 2020, after President Xi Jinping鈥檚 unexpected pledge in September to step up the climate change mitigation targets of the world鈥檚 biggest emitter. Despite pandemic-induced lower demand, elevated average allowance prices led to a total combined market of 鈧�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鈹乼he 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 鈧�22 billion ($26.50 billion) and 鈧�1.7 billion ($2.07 billion), respectively.
Other markets followed a similar pattern 鈥� prices in North America鈥檚 Western Climate Initiative (WCI) and Regional Greenhouse Gas Initiative (RGGI) as well as New Zealand鈥檚 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 鈧�22 billion and 鈧�1.7 billion, respectively. New Zealand鈥檚 market value rose to 鈧�516 million ($621.55 million) on higher average allowance prices, nearly 20% higher than in 2019.
South Korea鈥檚 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 ~鈧�829 million ($998.58 million).
The Chinese government published long-awaited rules for China鈥檚 national ETS in Q4 2020, after President Xi Jinping鈥檚 unexpected pledge in September to step up the climate change mitigation targets of the world鈥檚 biggest emitter. Despite pandemic-induced lower demand, elevated average allowance prices led to a total combined market of 鈧�257 million ($309.57 million), slightly higher compared to 2019.
Next Story
Mumbai-Ahmedabad Bullet Train Set to Launch by 2028
India鈥檚 first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India鈥檚 infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..
Next Story
Mumbai-Gandhinagar Train Service Enhances Passenger Capacity
The Mumbai Central鈥揋andhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India鈥檚 busiest business corridors. This upgrade, effective from 11 May, raised the train鈥檚 seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai鈥揂hmedabad鈥揋andhinagar route, which regularly operates at over 150 percent seat occupancy...
Next Story
Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently
Delhi鈥檚 ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river鈥檚 health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..
