Emission Trading System - United Kingdom

United Kingdom

The government income in the Emission Trading System market market in the United Kingdom is forecasted to reach US$10.30bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 5.67%, leading to a projected total of US$12.84bn by 2028.
When considering a global comparison, it is evident that the highest government income is achieved the in the United Kingdom ( US$10.30bn in 2024).
By 2028, the number of contracts in the Emission Trading System market market is expected to reach 6.23.
The United Kingdom's Emission Trading System in the Commodities market shows a growing interest in carbon credits trading among financial institutions and investors.

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Analyst Opinion

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.

Methodology

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.