Global carbon market grew 20% in 2020
ECONOMY & POLICY

Global carbon market grew 20% in 2020

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━the 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 €22 billion ($26.50 billion) and €1.7 billion ($2.07 billion), respectively.

Other markets followed a similar pattern – prices in North America’s Western Climate Initiative (WCI) and Regional Greenhouse Gas Initiative (RGGI) as well as New Zealand’s 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 €22 billion and €1.7 billion, respectively. New Zealand’s market value rose to €516 million ($621.55 million) on higher average allowance prices, nearly 20% higher than in 2019.

South Korea’s 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 ~€829 million ($998.58 million).

The Chinese government published long-awaited rules for China’s national ETS in Q4 2020, after President Xi Jinping’s unexpected pledge in September to step up the climate change mitigation targets of the world’s biggest emitter. Despite pandemic-induced lower demand, elevated average allowance prices led to a total combined market of €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━the 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 €22 billion ($26.50 billion) and €1.7 billion ($2.07 billion), respectively. Other markets followed a similar pattern – prices in North America’s Western Climate Initiative (WCI) and Regional Greenhouse Gas Initiative (RGGI) as well as New Zealand’s 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 €22 billion and €1.7 billion, respectively. New Zealand’s market value rose to €516 million ($621.55 million) on higher average allowance prices, nearly 20% higher than in 2019. South Korea’s 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 ~€829 million ($998.58 million). The Chinese government published long-awaited rules for China’s national ETS in Q4 2020, after President Xi Jinping’s unexpected pledge in September to step up the climate change mitigation targets of the world’s biggest emitter. Despite pandemic-induced lower demand, elevated average allowance prices led to a total combined market of €257 million ($309.57 million), slightly higher compared to 2019.

Next Story
Infrastructure Energy

Sterling and Wilson Secures Rs 12 Bn Solar EPC Contract in Gujarat

Sterling and Wilson Renewable Energy has been awarded a Rs 1,200 crore contract for a 500-megawatt (MW) solar photovoltaic (PV) project in Gujarat, strengthening its foothold in India’s renewable energy sector. The engineering, procurement, and construction (EPC) contract encompasses the design, engineering, and installation of balance-of-system (BoS) components with single-point responsibility. It also includes operations and maintenance (O&M) services for three years. “We are delighted to secure this significant order, which will aid India, especially Gujarat, in its transition to clean ..

Next Story
Infrastructure Energy

NTPC Green Energy Signs MoU with Bihar Government

NTPC Green Energy (NGEL), a subsidiary of NTPC, has entered into a Memorandum of Understanding (MoU) with the Department of Industries, Government of Bihar, during the Bihar Business Connect 2024 Global Investors’ Summit held on 20 December 2024 in Patna. The MoU outlines plans for substantial investments in Bihar to establish various renewable energy projects, including: Ground-mounted and floating solar installations Battery energy storage systems Green hydrogen mobility initiatives The Bihar Government will assist by facilitating necessary approvals, permissions, registrations, and cleara..

Next Story
Infrastructure Energy

ASECOL Launches 50 MW Solar Power Plant in Chitrakoot

ASECOL, a subsidiary of Adani Green Energy Limited (AGEL), has commissioned a 50 MW solar power plant in Chitrakoot, Uttar Pradesh. The plant has a 25-year Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Limited (UPPCL) at Rs. 3.07/kWh. This milestone increases AGEL's total renewable energy capacity to 3,520 MW, moving closer to its 25 GW target by 2025. With the successful commissioning of this plant, AGEL’s operational solar generation capacity exceeds 3 GW. The company’s total renewable capacity stands at 15,240 MW, including 11,720 MW under development. The facility..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000