2022 Value of world carbon emissions markets reached trillion dollers in

The value of traded carbon emissions markets in the world reached last year more than $909 billion or about trillion dollers to a record for the first time and about 12.5 billion tonnes of carbon allowances changed hands in global markets، down 20% comparing to that of the previous year but the value of traded global markets for carbon dioxide، CO2، permits rose 14% as allowance prices were much higher.

The researchers at the Western Climate Initiative and the Regional Greenhouse Gas Initiative، stated that the carbon emissions trading systems are market-based instruments for limiting greenhouse gas emissions and they limit the amount that countries or companies can emit، and if they exceed those limits، they can buy permits from other countries or companies.

The EU carbon emissions markets accounting for 87% of the global total

The EU Emissions Trading Scheme (EU ETS)، is the world’s largest carbon emissions market، launched in 2005، and was worth around $745 billion last year، up 10% from the year 2021 and accounting for 87% of the global total.

The price of carbon emissions allowances under the EU ETS averaged over $80 per tonne last year، up 50% year-on-year as energy prices soared after the war if Russia in Ukraine and the prices in the UK and North American markets were also higher last year than that in the previous year.

EU lawmakers try to reform carbon emissons markets 

EU lawmakers have also been working on reforming the EU ETS، during the past year، as part of efforts to tighten climate policy، and agree to cut the number of permits in the system، which has also been optimistic for prices، as they will have all eyes on the implementation of the legislation in 2023، with a massive one-off reduction in allowances planned for next year.

The sale of additional certificates to finance the REPowerEU plan will inject additional supply and thus weigh on prices as gas prices will remain a key driver of EU ETS prices in 2023 because of the Russian war in Ukrania، therefore، the REPowerEU plan aims to reduce the bloc’s dependence on Russian energy supplies and includes selling additional EU carbon credits to fund itself.

North America’s two regional carbon emissons markets، the Western Climate Initiative and the Regional Greenhouse Gas Initiative، were collectively worth over $70 billion last year، but China’s national carbon markets system which was launched in mid-2021، is unlike other systems، China’s emissions cap is based on emissions intensity.

Polluting industries call for loosening regulations that limit carbom emissions

The UN Organization calls for climate action over  visions at COP28 next year as polluting industries are trying to have an excuse to call for loosening regulations that limit carbom emissions from power plants but the Environmental Protection Agency announced a new temporary enforcement discretionary policy to watch closely to make sure the polluters have no free pass to produce more emissions.

Polluters are calling for relief from their responsibilities under environmental laws while at the same time saying that their workers at oil and gas and petrochemical facilities must be regarded as essential employees، as well as are seeking taxpayer dollars in stimulus packages to support their operations that produce more carbon emissions.