Dynamics of the global carbon markets

Abstract

World statistics show a steady increase in greenhouse gas emissions in the planet's atmosphere. Сcontinuous growth of greenhouse gas markets occurred despite the financial crisis (2008) and the pandemic (2019–2022). Currently there are dozens of market mechanisms in the world that capture some 20% of greenhouse gas emissions. Despite obvious progress, the terms of the Paris climate agreement are far from being met. The current situation requires the global community to strengthen measures to combat climate change. New approaches are needed to develop marketbased instruments to achieve climate goals. The study explores the volumes and trends of using the market economic mechanisms abroad. These mechanisms are able to cover a significant part of greenhouse gas emissions. Russia has so far been passively involved in the development of global carbon markets, unlike its western and eastern neighbors. The study of the experience of these countries is necessary for the successful assertion of national Russian interests in the global carbon policy and markets. Carbon credits are traded on a mandatory and voluntary markets. They are divided into primary and secondary. Carbon markets reached $800 billion in 2021, more than international trade in grains or oil. Voluntary markets have surpassed the $800 million mark and continue to grow rapidly. It is expected that by 2030 their volume will be at least 100 billion US dollars. As part of the study, promising directions for the Russian carbon markets were highlighted, taking into account world experience and development trends.