Major Carbon Markets Worldwide

Europe

EU ETS — The European allowance trading system is the largest and most mature in the world by value. It covers approximately 40% of total EU emissions in the energy, heavy industry and aviation sectors. With the 2023 reform (Fit for 55) the cap is reduced more rapidly. From 2024 the system also includes maritime transport. From 2027 ETS2 will enter into force, extending carbon pricing to road transport and buildings.

On the price front, after exceeding €90/t in January 2026, EUA allowances fell to around €70/t in February 2026, partly due to statements by German Chancellor Merz about a possible revision or postponement of the system. A reform of the ETS directive is expected in 2026, with possible changes to the phase-out of free allowances.

Switzerland — The Swiss ETS (EHS) has been linked to the EU ETS since 2020. It is accompanied by an active voluntary market and a domestic credit system (ARE) linked to the CO₂ tax.

North America

USA — The United States does not have a federal carbon pricing system, but several states have developed their own markets. California manages the most developed cap-and-trade in the country, linked with Canadian Quebec. The RGGI (Regional Greenhouse Gas Initiative) covers northeastern states for the energy sector. The American voluntary market is the largest in the world by volume of credits traded.

Canada — In 2025 Prime Minister Mark Carney eliminated the consumer carbon tax (federal fuel charge) effective April 1, 2025. The industrial system (Output-Based Pricing System, OBPS) for large emitters remains in force. Quebec maintains cap-and-trade linked to California through the Western Climate Initiative. British Columbia, after freezing the increase of its own carbon tax in 2024, initiated a review of the system.

Latin America

Brazil — The country with the greatest potential for nature-based credits in the world thanks to the Amazon and other biomes. In December 2024 it approved Law No. 15.042/2024, establishing the Sistema Brasileiro de Comércio de Emissões (SBCE). Full operability is expected within five to six years, with the first compliance obligations after an initial MRV and governance phase.

Mexico — Has managed a pilot ETS since 2020, with a transition phase started in 2022. The mandatory system is expected between late 2025 and 2026. Companies will be able to offset the entire quota through carbon credits without percentage limits.

Middle East

UAE — With Federal Decree-Law No. 11 of 2024 (in force from May 30, 2025), all entities — including companies in free zones — are required to measure, report and reduce GHG emissions. Large emitters (over 500,000 tonnes CO₂e/year) are required to register in the National Register of Carbon Credits (NRCC). Active platforms: AEX of Abu Dhabi and Carbon Credits Exchange of Dubai. Net-zero target by 2050.

Saudi Arabia — Has launched the Riyadh Voluntary Carbon Exchange as part of Vision 2030. Carbon neutrality target by 2060.

Asia

China — The Chinese ETS system, launched in 2021 for the energy sector, is the largest in the world by volume of emissions covered. In 2024 it was extended to steel, cement and aluminum, bringing coverage to over 60% of national emissions. The national voluntary market (CCER), suspended in 2017, was formally relaunched in January 2024 with new methodologies and centralized infrastructure. The price of allowances (CEA) ranged between 69 and 106 yuan/tonne in 2024, closing at 97.49 yuan/t. At the beginning of 2026 the market initiated a significant reset: companies are required to convert old vintages into CEA-2025, with new compliance rules aimed at reducing the accumulated surplus. China aims to introduce absolute caps on industrial emissions by 2027.

India — The Carbon Credit Trading Scheme (CCTS), regulations adopted July 2024, covers nine high energy-intensive sectors. Voluntary regulated mechanism in March 2025 with eight approved methodologies. Compliance launch expected by end of 2026. Coverage: over 700 million t CO₂e.

Japan — The GX-ETS (Green Transformation ETS), launched in 2023, is transitioning towards mandatory status. Accompanied by the J-Credit Scheme for domestic voluntary. Active in bilateral Article 6 agreements with numerous Asian countries.

South Korea — The K-ETS (Korea ETS), operational since 2015, covers approximately 70% of national emissions. Second largest cap-and-trade system in Asia after China's.

Singapore — Carbon tax since 2019, first in Southeast Asia. Hosts Climate Impact X (CIX), the main regional platform for voluntary credits.

Hong Kong — Core Climate (HKEX, 2022): gateway for credit flows between mainland China and international markets.

Asia-Pacific

Australia — ACCU (Australian Carbon Credit Units) system, among the most mature and liquid domestic credit markets in the world. Regulated by the Clean Energy Regulator.

Africa

Kenya and Sub-Saharan Africa — Area with the greatest potential for nature-based projects (forests, savannas, mangroves) and access to clean energy. Kenya is a regional hub for voluntary credit development. The governance of African projects is subject to growing international attention following some controversies over the distribution of benefits to local communities.

The Global Picture

The global carbon market is fragmented into national and regional systems with different rules, prices and standards. Article 6 of the Paris Agreement works towards greater international integration, but implementation timelines are still uncertain. The voluntary market — with its international private standards such as VCS and Gold Standard — offers a cross-jurisdictional instrument, accessible to any company regardless of its geographic location. From 2026 the European CBAM (Carbon Border Adjustment Mechanism) also enters the operational phase, imposing carbon costs on imports of steel, cement, aluminum, fertilizers and hydrogen from countries with less stringent carbon pricing systems — accelerating the global convergence of carbon prices.