The Global Carbon Credit Market Size is valued at 402.58 billion in 2022 and is predicted to reach 4431.81 billion by the year 2031 at a 30.72% CAGR during the forecast period for 2023-2031.
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.
Competitive Landscape:
Some of the Carbon Credit market players are:
- 3 Degrees
- AltaGas
- Bluesource Llc
- Carbon Care Asia Limited
- Carbon Credit Capital
- Carbonbetter
- Carbonfund
- Clearsky Climate Solutions
- Climate Impact Partners
- Climate Trade
- Climatepartner Gmbh
- Climeco LLC
- Climetrek Ltd.
- Cool Effect, Inc.
- Degrees Group Inc.
- EcoAct
- Eki Energy Services Ltd.
- Enking International
- Finite Carbon
- Forest Carbon
- Green Mountain Energy
- Moss Earth
- Native Energy
- Natureoffice Gmbh
- South Pole Group
- Sterling Planet, Inc.
- Sustainable Travel International
- Tasman Environmental Markets
- Terrapass
- WGL Holdings, Inc.
Market Segmentation:
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.
Based On The Voluntary Market, The Forestry And Land Use Segment Is Accounted As A Significant Contributor In The Carbon Credit Market
The forestry and land use category is expected to hold a substantial share in the global market in 2022. 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 Witnessed Growth At A Rapid Rate
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.
In The Region, Asia Pacific Carbon Credit Market Holds A Significant Revenue Share
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.
Carbon Credit Market Report Scope:
|
Report Attribute |
Specifications |
|
Market size value in 2022 |
USD 402.58 Bn |
|
Revenue forecast in 2031 |
USD 4431.81 Bn |
|
Growth rate CAGR |
CAGR of 30.72 % from 2023 to 2031 |
|
Quantitative units |
Representation of revenue in US$ Billion, and CAGR from 2023 to 2031 |
|
Historic Year |
2019 to 2022 |
|
Forecast Year |
2023-2031 |
|
Report coverage |
The forecast of revenue, the position of the company, the competitive market statistics, growth prospects, and trends |
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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. |
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Customization scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing and available payment methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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