Global carbon market expansion and regulation

The global carbon credit market is experiencing significant growth and regulatory integration. High-quality carbon credits have seen a 75% value increase over a 12-month period, reaching $14 per ton, while lower-quality credits remain below $2 per ton. This expansion is supported by increased capital mobilization, including $5.5 billion invested in futures contracts and projects.

Regulatory shifts are driving market development across several regions. The European Union has integrated maritime emissions into its Emissions Trading System (ETS), and Vietnam is advancing a roadmap that includes establishing emission quotas and carbon trading mechanisms. Vietnam has specifically set pilot greenhouse gas emission quotas for 2025 and 2026 for 110 facilities in the steel, cement, and thermal power industries.

As these markets expand, there is an increasing demand for carbon accounting to ensure financial transparency. Tightening climate disclosure regulations, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), require businesses to improve the measurement and verification of emission data. These developments are transitioning greenhouse gas emissions from environmental concerns into critical components of corporate financial reporting and performance.