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In 2023, the EU launched a sweeping Carbon Border Adjustment Mechanism (CBAM), ushering the global carbon market into a new era; China's carbon prices saw record highs despite a lack of trading momentum; South Korea introduced its first carbon neutrality initiative to address persistently subdued market sentiment. These dramatic changes underscore the global significance of the carbon market. To help investors keep abreast of the latest market trends, Reccessary presents the annual report, focusing on market performance in 2023 and policy outlook for 2024 for markets of the EU, U.S., and Asia Pacific.
Global carbon market overview
There are currently 34 carbon trading systems in the world, with the EU, China, and South Korea leading the region in terms of size and maturity. The table below illustrates the performance of the three markets in 2023.
Average prices in major global carbon markets in 2023 (Unit: national currencies/tonne)[1]
EU: Changes in power mix and weak demand push down carbon prices in 2H23