Carbon markets year in review 2025

European carbon markets grew in overall value in 2025 on the back of higher allowance prices, whereas total market value of both North American markets and that of China’s and South Korea’s national carbon market decreased. With the exception of the Regional Greenhouse Gas Initiative (RGGI), which exhibited record prices at the end of the year, the decrease in value in the these markets was due to significantly lower allowance prices and lower traded volumes. Transactions of contracts for international carbon credits (the “voluntary market”) also decreased dramatically. Outlooks for 2026 and beyond are bullish for the European and North American markets.