Emission Trading System - United Kingdom

The government income in the Emission Trading System market is projected to reach US$6.41bn in 2025.
It is expected to show an annual growth rate (CAGR 2025-2029) of 0.93% resulting in a projected total amount of US$6.65bn by 2029.
From a global comparison perspective it is shown that the highest government income is reached Germany (US$13.19bn in 2025).
In the Emission Trading System market, the number of contracts is expected to amount to 9 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

Emission Trading System: market data & analysis

The Emission Trading System market in United Kingdom has been experiencing significant growth and evolution in recent years. Customer preferences in the UK Emission Trading System market are shifting towards more sustainable and environmentally friendly investment options.

Investors are increasingly looking for opportunities to participate in carbon trading and support initiatives that promote a greener economy. Trends in the UK Emission Trading System market indicate a growing interest from both institutional and retail investors. The market is becoming more accessible and transparent, attracting a broader range of participants.

Additionally, regulatory developments and government support for carbon reduction initiatives are driving the expansion of the market. Local special circumstances, such as the UK's commitment to achieving net-zero carbon emissions by 2050, are playing a significant role in shaping the Emission Trading System market. The government's ambitious targets and policies to combat climate change are creating a favorable environment for carbon trading activities and fostering innovation in the market.

Underlying macroeconomic factors, including the increasing focus on sustainability and climate change mitigation on a global scale, are also influencing the development of the Emission Trading System market in the UK. As environmental concerns continue to gain prominence worldwide, the demand for carbon credits and emissions trading is expected to grow, providing further opportunities for market expansion and diversification.

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 Finance 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?

Emission Trading System - United Kingdom

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