Global Carbon Credit Market Size is valued at USD 531.2 Billion in 2024 and is predicted to reach USD 7126.6 Billion by the year 2034 at a 29.8% CAGR during the forecast period for 2025-2034.
A carbon credit is a tradable permit or certificate allowing the holder to emit one tonne of CO2 or the equivalent amount of another greenhouse gas. It is effectively an offset for those who produce such gases. As the global warming movement gains traction, carbon markets are becoming increasingly important in reaching net-zero greenhouse-gas emissions.
Carbon capture solutions are now leading the race against global warming as they develop and deploy innovative, scalable carbon capture technology that will allow us to stop the flow of carbon dioxide and extract the already emitted carbon dioxide. Around the globe, many international, national, and sub-national market mechanisms are being developed. The rising variety of carbon markets necessitates a robust regulatory framework to avoid hazards such as activities being counted twice.
However, against the backdrop of COVID consequences and economic recoveries, more emphasis is being made on the promise of carbon markets to achieve climate goals while also supporting other socioeconomic goals efficiently.
The Carbon Credit Market is segmented based on type, type of project, and Application. Type segment includes voluntary Market (forestry and land use, renewable energy, chemical processes/Industrial manufacturing, energy efficiency/fuel switching) and compliance market (EU ETS, California CAP and Trade, and others. The Type of Project segment includes avoidance/reduction projects and removal/sequestration projects (nature-based, technology-based). By Application, the Market is segmented into power, energy, aviation, transportation, building, industrial, and others.
The forestry and land use category is expected to hold a substantial share in the global market in 2024. Tropical forests encompass around 15% of the world's land surface and contain approximately 25% of the carbon on the planet's surface. Forest loss and degradation account for 15 to 20% of global carbon emissions. The majority of these emissions are caused by deforestation in the tropics, primarily as a result of forest conversion to more lucrative economic activities such as agriculture and mining. Over the last ten years, the Market for forest carbon credits has grown dramatically.
The power segment is projected to grow at a rapid rate in the global Carbon Credit Market. This segment's dominance can be ascribed to the strong demand for energy generation, which results in significant emissions from power utilities. As a result, there will be a high need for carbon trading platforms.
Between 2023 and 2031, Asia-Pacific is anticipated to experience the most rapid growth in the market, followed by Europe. Asia Pacific Carbon Credit Market position is expected to register the highest market share in terms of revenue in the near future. Investments in clean power generation and electrification, as well as acceptance of carbon credit by businesses and local government entities, are driving the regional market expansion.
Also, Europe region has also experienced substantial industrial growth, which has increased demand for carbon credit trading platforms. Many countries in Europe have publicly committed to achieving carbon neutrality by 2050. Because the carbon market is regarded as a vital tool for achieving these goals, the compliance and voluntary global market is expected to increase in the future years.
|
Report Attribute |
Specifications |
|
Market size value in 2024 |
USD 531.2 Billion |
|
Revenue forecast in 2034 |
USD 7126.6 Billion |
|
Growth rate CAGR |
CAGR of 29.8% from 2025 to 2034 |
|
Quantitative units |
Representation of revenue in US$ Bn, and CAGR from 2025 to 2034 |
|
Historic Year |
2021 to 2024 |
|
Forecast Year |
2025-2034 |
|
Report coverage |
The forecast of revenue, the position of the company, the competitive market statistics, growth prospects, and trends |
|
Segments covered |
Type, Type of Project, And Application |
|
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; Southeast Asia |
|
Competitive Landscape |
South Pole Group, 3Degrees, Finite Carbon, EKI Energy Services Ltd., NativeEnergy, CarbonBetter, Carbon Care Asia Limited, Terrapass, Climetrek Ltd., Carbon Credit Capital, NatureOffice GmbH, Climate Partner GmbH, Climate Trade, ForestCarbon, Moss. Earth, Bluesource LLC, TEM (Tasman Environmental Markets), Climate Impact Partners, Carbonfund, and Climeco LLC. |
|
Customization scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing and available payment methods |
Explore pricing alternatives that are customized to your particular study requirements. |
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
Chapter 2. Executive Summary
Chapter 3. Global Carbon Credit Market Snapshot
Chapter 4. Global Carbon Credit Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Industry Analysis – Porter’s Five Forces Analysis
4.7. Competitive Landscape & Market Share Analysis
4.8. Impact of Covid-19 Analysis
Chapter 5. Market Segmentation 1: by Type Estimates & Trend Analysis
5.1. by Type & Market Share, 2024 & 2034
5.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2021 to 2034 for the following by Type:
5.2.1. Voluntary Market
5.2.1.1. Forestry and Land Use
5.2.1.2. Renewable Energy
5.2.1.3. Chemical Processes/Industrial Manufacturing
5.2.1.4. Energy Efficiency/Fuel Switching
5.2.2. Compliance Market
5.2.2.1. EU ETS
5.2.2.2. California CAP and Trade
5.2.2.3. Others
Chapter 6. Market Segmentation 2: by Type of Project Estimates & Trend Analysis
6.1. by Type of Project & Market Share, 2024 & 2034
6.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2021 to 2034 for the following by Type of Project:
6.2.1. Avoidance/Reduction Projects
6.2.2. Removal/Sequestration Projects
6.2.2.1. Nature-Based
6.2.2.2. Technology-Based
Chapter 7. Market Segmentation 3: by Application Estimates & Trend Analysis
7.1. by Application & Market Share, 2024 & 2034
7.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2021 to 2034 for the following by Application:
7.2.1. Aviation
7.2.2. Building
7.2.3. Energy
7.2.4. Industrial
7.2.5. Power
7.2.6. Transportation
7.2.7. Others
Chapter 8. Carbon Credit Market Segmentation 4: Regional Estimates & Trend Analysis
8.1. North America
8.1.1. North America Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type, 2021-2034
8.1.2. North America Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type of Project, 2021-2034
8.1.3. North America Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Application, 2021-2034
8.1.4. North America Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
8.2. Europe
8.2.1. Europe Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type, 2021-2034
8.2.2. Europe Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type of Project, 2021-2034
8.2.3. Europe Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Application, 2021-2034
8.2.4. Europe Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
8.3. Asia Pacific
8.3.1. Asia Pacific Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type, 2021-2034
8.3.2. Asia Pacific Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type of Project, 2021-2034
8.3.3. Asia-Pacific Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Application, 2021-2034
8.3.4. Asia Pacific Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
8.4. Latin America
8.4.1. Latin America Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type, 2021-2034
8.4.2. Latin America Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type of Project, 2021-2034
8.4.3. Latin America Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Application, 2021-2034
8.4.4. Latin America Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
8.5. Middle East & Africa
8.5.1. Middle East & Africa Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type, 2021-2034
8.5.2. Middle East & Africa Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Type of Project, 2021-2034
8.5.3. Middle East & Africa Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by Application, 2021-2034
8.5.4. Middle East & Africa Carbon Credit Market Revenue (US$ Million) Estimates and Forecasts by country, 2021-2034
Chapter 9. Competitive Landscape
9.1. Major Mergers and Acquisitions/Strategic Alliances
9.2. Company Profiles
9.2.1. 3 Degrees
9.2.2. AltaGas
9.2.3. Bluesource Llc
9.2.4. Carbon Care Asia Limited
9.2.5. Carbon Credit Capital
9.2.6. Carbonbetter
9.2.7. Carbonfund
9.2.8. Clearsky Climate Solutions
9.2.9. Climate Impact Partners
9.2.10. Climate Trade
9.2.11. Climatepartner Gmbh
9.2.12. Climeco LLC
9.2.13. Climetrek Ltd.
9.2.14. Cool Effect, Inc.
9.2.15. Degrees Group Inc.
9.2.16. EcoAct
9.2.17. Eki Energy Services Ltd.
9.2.18. Enking International
9.2.19. Finite Carbon
9.2.20. Forest Carbon
9.2.21. Green Mountain Energy
9.2.22. Moss Earth
9.2.23. Native Energy
9.2.24. Natureoffice Gmbh
9.2.25. South Pole Group
9.2.26. Sterling Planet, Inc.
9.2.27. Sustainable Travel International
9.2.28. Tasman Environmental Markets
9.2.29. Terrapass
9.2.30. WGL Holdings, Inc.
9.2.31. Other Prominent Players
Carbon Credit Market By Type-
Carbon Credit Market By Type of Project-
Carbon Credit Market By Application-
Carbon Credit Market By Region-
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
InsightAce Analytic follows a standard and comprehensive market research methodology focused on offering the most accurate and precise market insights. The methods followed for all our market research studies include three significant steps – primary research, secondary research, and data modeling and analysis - to derive the current market size and forecast it over the forecast period. In this study, these three steps were used iteratively to generate valid data points (minimum deviation), which were cross-validated through multiple approaches mentioned below in the data modeling section.
Through secondary research methods, information on the market under study, its peer, and the parent market was collected. This information was then entered into data models. The resulted data points and insights were then validated by primary participants.
Based on additional insights from these primary participants, more directional efforts were put into doing secondary research and optimize data models. This process was repeated till all data models used in the study produced similar results (with minimum deviation). This way, this iterative process was able to generate the most accurate market numbers and qualitative insights.
Secondary research
The secondary research sources that are typically mentioned to include, but are not limited to:
The paid sources for secondary research like Factiva, OneSource, Hoovers, and Statista
Primary Research:
Primary research involves telephonic interviews, e-mail interactions, as well as face-to-face interviews for each market, category, segment, and subsegment across geographies
The contributors who typically take part in such a course include, but are not limited to:
Data Modeling and Analysis:
In the iterative process (mentioned above), data models received inputs from primary as well as secondary sources. But analysts working on these models were the key. They used their extensive knowledge and experience about industry and topic to make changes and fine-tuning these models as per the product/service under study.
The standard data models used while studying this market were the top-down and bottom-up approaches and the company shares analysis model. However, other methods were also used along with these – which were specific to the industry and product/service under study.
To know more about the research methodology used for this study, kindly contact us/click here.
