The political battle against the world’s rising greenhouse gas emissions has found an unexpected ally – in carbon pollution itself. By putting a price on carbon emissions, and harnessing the powers of market forces, the world’s burgeoning trade of carbon offset permits is gaining traction as a major weapon in the bid to keep global temperatures from rising.

The value of energy commodities including oil, gas and coal may have more than doubled in recent years, but it is the offspring of the fossil fuel industry which is emerging as the next generation commodity to watch.

In the last year alone, the value of Europe’s flagship carbon market has tripled. Fresh analysis shows that the price could be set to double again within the next three years and quadruple by the end of the next decade. The World Bank estimates that carbon markets, and simpler carbon tax regimes, have a value of well over $82bn (£62bn).

“Governments at all levels are starting to see the effectiveness of carbon pricing in their efforts to cut harmful carbon pollution while also raising revenues for climate and other policies, including environmental action,” said John Roome, a senior director at the World Bank.