The Emissions Trading Market plays a vital role in addressing climate change by enabling industries and governments to trade carbon credits. Emissions trading, also known as cap and trade, is an environmental policy tool used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. It allows participants who can reduce pollution at a lower cost to profit from pollution credits they earn from over-achieving their reduction targets, which they can then sell to others for whom reducing pollution is more costly.

Key takeaways

Key players: Key players operating in the Emissions Trading Market include Johnson & Johnson Services, Inc., 3M, Baxter, Coloplast A/S, Integra LifeSciences, Medtronic, Omeza, Cardinal Health, Bactiguard AB, Noventure, Essity, Schulke & Mayr GmbH, Smith & Nephew Plc., Convatec Group PLC, SANUWAVE and SANUWAVE Health, Inc., EO2 Concepts, Wound Care Advantage, LLC., Healthium Medtech Limited, Arch Therapeutics, Inc., Hydrofera, Sanara MedTech Inc., Axio Biosolutions Pvt Ltd., and Gentell, Inc.

Growing demand: The increasing concerns regarding environmental protection and strict environmental regulations worldwide have created substantial growth opportunities for Emissions Trading Market Size. Major industries, as well as national and international organizations, are focusing on reducing carbon footprint through various carbon trading mechanisms.

Global expansion: Many developing countries in Asia and South America are actively participating in the emissions trading programs of developed nations in Europe and North America. Regional and international collaborations will play a major role in the global expansion of the emissions trading market in the coming years.

Market key trends

One of the key trends driving growth in the emissions trading market is the launch of new carbon trading programs. Many countries and sub-national jurisdictions are either in the process of launching or expanding existing carbon markets. For instance, China launched its national emissions trading scheme in 2021, the largest carbon market in the world. South Korea also announced plans to introduce a mandatory carbon trading program. Such developments are expected to give a big boost to global carbon credit demand and trading activity.

Porter’s Analysis

Threat of new entrants: High capital requirements and presence of some regulatory barriers pose a moderate threat of new entrants.

Bargaining power of buyers: Large buyers have moderate bargaining power due to availability of substitutes in the market.

Bargaining power of suppliers: Few large suppliers have some bargaining power due to differentiated products and technologies supplied by them.

Threat of new substitutes: Threat of substitutes is low as emissions trading serves a unique purpose of carbon emission reduction.

Competitive rivalry: Intense competition exists among existing players to gain higher market share.

Geographical Regions

The European market accounts for the largest share in terms of value due to strict emission norms and presence of major emitting nations like Germany, UK, France etc.

The Asia Pacific region is growing at the fastest pace owing to rapid industrialization and urbanization in countries like China and India. Strong government support in the form of carbon trading schemes is also boosting the market in the region.

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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)