Carbon dioxide price index

Carbon dioxide price December 2025 and outlook (see chart below)

• Europe:US$0.3/KG, 3.4% up
• North America:US$0.74/KG, 2.8% up

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Carbon dioxide price index

This post is a summary of the Carbon dioxide price developments. The price developments of Carbon dioxide are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Carbon dioxide price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

The outlook for Carbon dioxide prices is generated from different inputs including:

• Very recent price developments of immediate cost drivers of Carbon dioxide prices
• Recent price developments of underlying feedstocks which drive the price of Carbon dioxide
• Market futures for both cost drives and feedstocks of Carbon dioxide prices
• Adjustment of current supply/demand imbalances in the Carbon dioxide market
• Longer term trends in likely demand conditions

What is Carbon dioxide and what is it used for

Carbon dioxide (CO₂) is a colourless, odourless gas made of one carbon and two oxygen atoms. It occurs naturally in Earth’s atmosphere and is produced by respiration, combustion and many industrial processes. Commercially, CO₂ is used in food & beverage carbonation, refrigeration and cooling (including dry ice), fire suppression, as an inerting/shielding gas in welding and manufacturing, in medical and laboratory applications, and as a feedstock or working fluid for certain chemical processes and enhanced oil recovery.

How is Carbon dioxide produced

CO₂ is produced both biologically and industrially. Biological sources include respiration and fermentation (e.g., alcohol and bioethanol plants generate CO₂ as a by-product). Industrial sources include combustion of fossil fuels, limestone calcination in cement production, and by-product streams from hydrogen, ammonia (fertiliser) and natural gas processing. High-purity CO₂ for commercial use is often recovered from these concentrated industrial streams or produced by purification of flue gases and gas-processing units; capture and purification technologies (including point-source capture and increasingly direct air capture) are also growing.

How large is the global market for Carbon dioxide

Estimates vary by source and by whether reports count only the industrial/commercial CO₂ market or broader CO₂-related services. Recent market research places the global industrial/carbon-dioxide market value roughly in the single-digit to low-double-digit billions of US dollars (examples: about USD 9–12 billion in 2023–2025 estimates), with forecasts projecting mid single-digit to high single-digit percent CAGR through the late 2020s driven by food & beverage demand, industrial uses, and CO₂ use in enhanced oil recovery and other applications.

Where is Carbon dioxide produced

Commercial CO₂ production is closely tied to heavy industry and large emission sources: regions with large cement, steel, chemical, ammonia, ethanol and fossil-fuel processing industries produce and capture the bulk of commercial CO₂. At the national level, the largest CO₂ emitters (China, the United States, India, the EU and Russia) are also major producers of industrial CO₂ simply because of their scale of industrial activity; meanwhile large natural-gas processing, hydrogen and ammonia hubs (e.g., parts of North America, the Middle East, and Asia) are important sources of high-purity CO₂ for commercial supply.