The value of traded global markets for carbon dioxide (CO2) permits reached a record EUR850bn (USD909bn) last year. Around 12.5 billion tonnes of carbon permits changed hands in the world's emissions markets, about 20% less than the previous year, but the value of the markets rose by 14% as prices for permits were much higher. Emissions trading schemes are market-based tools meant to limit greenhouse gas emissions. They put a cap on the amount countries or companies can emit, and if they exceed those limits, they can buy permits from others. The world's biggest carbon market, the EU's Emissions Trading System (EU ETS), which was launched in 2005, was worth around EUR751bn last year, up 10% from the previous year and representing 87% of the global total.

Source: ESG News