How large can carbon markets become?

More than 60 carbon markets and taxes have been implemented around the world, covering 11.6 GtCO or 22% of global greenhouse gas emissions. The global compliance carbon markets, in which carbon allowances are traded and regulated by mandatory national/sub-national regimes, account for ~75% of those total emissions covered and have a carbon market-weighted average price of ~$ 28/ton. Still, even at current prices, we estimate the market value of CCMs totals over $270 billion, with the EU and UK ETS –two schemes with the highest carbon prices – making up 63% of that value while accounting for less than 20% of the covered emissions. China, given its large emission footprint, accounts for ~16% of the total CCM value. (See Figure 11.)