Emission Trading System - New Zealand

The government income in the Emission Trading System market is projected to reach US$689.60m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.83% resulting in a projected total amount of US$915.60m by 2029.
From a global comparison perspective it is shown that the highest government income is reached Germany (US$12.59bn in 2024).
In the Emission Trading System market, the number of contracts is expected to amount to 17 by 2029.

Definition:

The Emission Trading System market refers to CO2 certificate trading. These systems are financial vehicles that regulate the emissions of markets.

Structure:

The segment data of the Emission Trade System (ETS) is only provided for countries where an ETS is in place (therefore the number of countries where data is shown is reduced in comparison to other segments).

Additional information:

The market contains the following KPIs: government income, the volume of traded certificates for CO2 tones, the share of ETS covered emissions on the total market's emissions, as well as the market's CO2 emissions in total.

Emission Trading System

Amidst the global push for sustainability and carbon emission reduction, the Emission Trading System market in New Zealand has been experiencing notable developments. Customer preferences in New Zealand are increasingly leaning towards environmentally friendly and sustainable practices.

This shift in consumer behavior has led to a growing demand for carbon credits and emission allowances in the Emission Trading System market. Companies are now more inclined to participate in emissions trading to offset their carbon footprint and align with consumer expectations. Trends in the Emission Trading System market in New Zealand reflect the country's commitment to combat climate change.

The market is witnessing an uptick in trading activities as more businesses seek to comply with regulations and reduce their environmental impact. Additionally, the government's initiatives to promote carbon pricing and incentivize emission reductions have spurred further growth in the market. Local special circumstances, such as New Zealand's unique geographical features and reliance on agriculture, play a significant role in shaping the Emission Trading System market.

The country's agricultural sector, a significant source of greenhouse gas emissions, has been actively participating in emissions trading to manage and mitigate its environmental impact. This sector-specific focus has influenced the dynamics of the market and contributed to its overall growth. Underlying macroeconomic factors, including New Zealand's economic stability and commitment to sustainability, have also contributed to the development of the Emission Trading System market.

The country's strong regulatory framework and support for renewable energy initiatives have created a conducive environment for emissions trading activities to thrive. Additionally, the government's efforts to integrate climate considerations into policy-making have further propelled the market forward.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

It is widely accepted that the world must transition to a net-zero emission economy to combat rising global temperatures and limit the worst impacts of climate change. One measure to achieve this goal that is gaining momentum around the world is carbon pricing. Between 2010 and 2023, the number of carbon pricing mechanisms more than quadrupled to 75, with these instruments now covering roughly a quarter of global GHG emissions. But with global emissions continuing to rise and carbon prices seen by many as too low to reduce emissions, will carbon pricing fulfill its potential?