Trading in emission certificates is a growing market that has developed dynamically in recent years. According to the Global Carbon Market Report 2021 of the International Carbon Action Partnership (ICAP), the trading volume of emission certificates worldwide amounted to more than €270 billion in 2020. Most emission allowances were traded in Europe, followed by China and North America.
In Europe, the EU Emissions Trading Directive and the EU Emissions Trading Framework regulate emissions allowance trading. In other parts of the world, there are similar regulations governing the trading of emissions certificates.
It is important that companies wishing to enter the carbon trading market understand the regulations of the market and the region in which they operate. Companies should also be aware of market developments and future trends in order to be successful in carbon trading.