Emission Trading System - Switzerland

Switzerland

The government income in the Emission Trading System market is projected to reach US$37.16m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.57% resulting in a projected total amount of US$42.18m by 2029.
From a global comparison perspective it is shown that the highest government income is reached in Germany (US$12,590.00m in 2024).
In the Emission Trading System market, the number of contracts is expected to amount to 5 by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Switzerland, known for its picturesque landscapes and high-quality products, has also been making strides in the Emission Trading System market.

Customer preferences: Swiss customers are increasingly conscious of environmental issues and are showing a growing interest in sustainable investments. This shift in mindset is driving demand for emissions trading as investors seek to support companies that are environmentally responsible.

Trends in the market: In Switzerland, the Emission Trading System market is witnessing a trend towards greater participation from financial institutions and corporations. This can be attributed to the country's stringent environmental regulations and the government's push towards carbon neutrality. As a result, more companies are looking to buy emission allowances to comply with regulations or to offset their carbon footprint.

Local special circumstances: One of the unique aspects of the Emission Trading System market in Switzerland is its close ties to the financial sector. With Zurich being a global financial hub, there is a strong presence of financial institutions that are actively involved in emissions trading. This has contributed to the development of a sophisticated market with advanced trading strategies and instruments.

Underlying macroeconomic factors: Switzerland's stable economy and commitment to sustainability are key macroeconomic factors influencing the Emission Trading System market. The country's strong financial infrastructure and reputation for innovation have attracted investors looking to capitalize on the growing demand for emissions trading. Additionally, the government's support for renewable energy projects and carbon reduction initiatives has created a favorable environment for the market to thrive.

Methodology

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.