December 6, 2024
Carbon Credit Market
Ict

Global Carbon Credit Market to Reach US$25.35 Billion in 2023

Market Overview:

The global Carbon Credit Market is estimated to be valued at US$ 25.35 billion in 2023 and is expected to exhibit a CAGR of 24.4% over the forecast period 2023 to 2030. Carbon credits are tradable permits that are issued to companies or organizations that have reduced their greenhouse gas emissions. These credits can be bought and sold in the market, allowing organizations to offset their emissions by purchasing credits from others. The growing concern for environmental sustainability and the increasing adoption of emission reduction strategies by various industries are driving the demand for carbon credits. This market provides an effective solution for organizations to meet their emission reduction targets and contribute to a greener future.

Market Key Trends:

Rising Demand for Carbon Neutrality:
One key trend in the Carbon Credit Market Size is the growing demand for carbon neutrality. Many organizations, particularly those in the energy and transportation sectors, are actively pursuing carbon neutrality goals. They are adopting sustainable practices and investing in renewable energy projects to reduce their carbon footprint. This has led to an increased demand for carbon credits, as companies seek to offset their remaining emissions and achieve carbon neutrality. The market is witnessing a surge in the number of buyers looking to procure carbon credits, creating lucrative opportunities for market players.

Key Players in the Market:

WGL Holdings, Inc., Enking International, Green Mountain Energy, Native Energy, Cool Effect, Inc., Clear Sky Climate Solutions, Sustainable Travel International, 3 Degrees, terrapass, and Sterling Planet, Inc. are some of the key players operating in the global carbon credit market. These players are actively engaged in providing carbon credits and related services to industries. Their offerings include consulting services, carbon offset projects, and carbon credit trading platforms.

Segment Analysis:

The carbon credit market can be segmented based on type, application, and end-user industry. Based on type, the market can be divided into voluntary markets and compliance markets. The voluntary market segment is expected to dominate the market during the forecast period. This can be attributed to the increasing number of organizations voluntarily offsetting their carbon emissions to promote environmental sustainability. Many companies are purchasing carbon credits as a part of their corporate social responsibility initiatives and to enhance their brand image. Moreover, voluntary carbon credits provide flexibility to the buyers in terms of choosing projects and locations, which further boosts their demand.

Key Takeaways:

The global carbon credit market is expected to witness high growth, exhibiting a CAGR of 24.4% over the forecast period from 2023 to 2030. This growth can be attributed to various factors. Firstly, increasing awareness about climate change and the need for environmental sustainability among individuals, organizations, and governments is driving the demand for carbon credits. Additionally, the implementation of strict government regulations and policies to reduce greenhouse gas emissions is fueling the market growth. For example, the Paris Agreement has encouraged countries to adopt carbon offsetting mechanisms, thereby driving the demand for carbon credits.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the carbon credit market. This can be attributed to the presence of numerous key players in the region, such as WGL Holdings, Inc., Enking International, and Green Mountain Energy, who are actively participating in the carbon credit market. Furthermore, regional initiatives and collaborations aiming to reduce carbon emissions, such as the Regional Greenhouse Gas Initiative (RGGI) in the United States, are driving the market growth in North America.

Key players operating in the carbon credit market include WGL Holdings, Inc., Enking International, Green Mountain Energy, Native Energy, Cool Effect, Inc., Clear Sky Climate Solutions, Sustainable Travel International, 3 Degrees, terrapass, and Sterling Planet, Inc. These key players are focusing on strategic partnerships, acquisitions, and investments to expand their market presence and offer innovative carbon offset solutions. For example, Cool Effect, Inc. has partnered with various global projects to offer high-quality carbon credits to individuals and businesses.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →