Carbon markets put a price on emissions and that price is increasingly showing up in everyday energy decisions. Today, 41 carbon markets are operating worldwide, covering about one-quarter of global emissions, and they generated nearly $80 billion in revenue in 2025.

In markets with carbon pricing, companies that generate power or produce emissions often must purchase allowances to cover those emissions. That cost doesn’t stay isolated; it can influence how energy is priced, structured, and sold.

In Europe, the largest system — the EU carbon market — has allowance prices around €77 per ton, reflecting both current market activity and expectations for stricter emissions limits over time.

Even in the U.S., where carbon markets aren’t everywhere, programs like California’s cap-and-trade system continue to send consistent signals through allowance auctions and emissions caps, shaping how energy is valued over time.

Read more: ICAP Status Report 2026 | International Carbon Action Partnership