What is the global market size of Carbon Credits Market?

Global Carbon Credits Market size was valued at USD 1.29 billion in 2021 and is poised to grow from USD 2 billion in 2022 to USD 68.37 billion by 2030, growing at a CAGR of 55.5% in the forecast period (2023-2030).

Carbon Credits Market Size, Share, Growth Analysis, By Type (Regulatory, Voluntary), By Project Type (Avoidance/Reduction Projects, Removal/Sequestration Projects), By End-use (Aviation, Energy, Industrial), By Region - Industry Forecast 2025-2032

Report ID: SQMIG25E2111 | Region: Global | Published Date: November, 2024
Pages: 223 | Tables: 88 | Figures: 66

Carbon Credits Market Insights

Carbon Credits Market size was valued at USD 479.41 Billion in 2023 and is poised to grow from USD 668.3 Billion in 2024 to USD 97.41 Billion by 2032, growing at a CAGR of 39.4% during the forecast period (2025-2032).

Carbon credits operate as permits, each representing the removal of one ton of carbon dioxide from the environment. These credits are predominantly acquired by individuals or businesses seeking to offset their carbon emissions stemming from industrial activities.

Various registries such as the American Carbon Registry (ACR), Climate Action Reserve (CAR), and the UN Clean Development Mechanism (UN CDM), among others, oversee and regulate these carbon credits. Revenue generated from the sale of these credits serves as crucial financial support for emission reduction projects.

This funding plays a pivotal role in incentivizing and financing additional initiatives geared towards reducing emissions.

Ultimately, this mechanism contributes significantly to global endeavors aimed at mitigating climate change and facilitating the transition towards a low-carbon economy.

Carbon Credits Market Report Snapshots

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Global Carbon Credits Market size was valued at USD 2.2 billion in 2022 and is poised to grow from USD 479.41 billion in 2023 to USD 69.88 billion by 2031, growing at a CAGR of 39.4%during the forecast period (2024-2031).

The competitive environment of the Global Carbon Credits Market is dynamic and characterized by the presence of a mix of well-established brands, emerging players, and niche producers. Innovation is a key competitive factor. Leading brands invest in research and development to introduce new flavors, packaging formats, and health-focused variations to cater to changing consumer preferences. They often set the trends in the industry. '3Degrees Group, Inc. ', 'Carbon Care Asia Ltd. ', 'CarbonBetter ', 'ClearSky Climate Solutions ', 'EKI Energy Services Ltd. ', 'Finite Carbon ', 'Native Energy ', 'South Pole Group ', 'Torrent Power Ltd. ', 'WGL Holdings Inc. ', 'Tasman Environmental Markets ', 'Moss.Earth ', 'Climeco Llc ', 'Climetrek Ltd. ', 'Climatepartner Gmbh ', 'Climate Impact Partners ', 'Terrapass ', 'Carbon Credit Capital ', 'Bluesource Llc ', 'Carbonfund'

The forecasted surge in demand for carbon credits holds considerable weight, yet McKinsey's analysis suggests a potential equilibrium by 2030, wherein the anticipated demand aligns with the projected annual supply of carbon credits, estimated at 8 to 12 GtCO2 per year. This potential supply hinges on four primary categories: mitigating nature loss, encompassing efforts such as preventing deforestation; nature-based sequestration, such as reforestation initiatives; endeavors aimed at curtailing or diminishing emissions like methane from landfills; and the advancement of technology-driven methods to extract carbon dioxide directly from the atmosphere.

The Boston Consulting Group has taken a more reserved stance in its projections, anticipating a market size ranging between $10 billion to $40 billion by 2030. However, their outlook remains optimistic, anticipating a rapid surge in demand, supported by insights from a survey of business executives. This growth trajectory is propelled by several factors, including the increasing number of companies committed to achieving net-zero emissions targets, leading to amplified purchases of offsets to facilitate their attainment.

In 2022, the Asia-Pacific emerged as the dominant force in the global carbon credits market and is anticipated to maintain its position as the fastest-growing region throughout the forecast period. The market's prevalence in countries such as China, Japan, India, among others, is attributed to numerous sustainability initiatives undertaken by companies within this region. Notably, countries such as Japan have made significant strides in promoting sustainability, exemplified by the decision in May 2022 to launch the region's inaugural exchange specifically dedicated to carbon emissions trading.

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Carbon Credits Market Size, Share, Growth Analysis, By Type (Regulatory, Voluntary), By Project Type (Avoidance/Reduction Projects, Removal/Sequestration Projects), By End-use (Aviation, Energy, Industrial), By Region - Industry Forecast 2025-2032

Carbon Credits Market Insights

Carbon Credits Market Report Snapshots

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