February 19, 2025
Global Carbon Credit Market
Ict

Expanding Carbon Capture Opportunities Is Anticipated To Openup The New Avanue For Global Carbon Credit Market.


The Global Carbon Credit Market is estimated to be valued at US$ 31.54 billion in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The Global Carbon Credit Market involves trading of carbon credits. Carbon credits are certificates that represent the reduction or removal of one tonne of carbon dioxide emissions. Various industries and organizations voluntarily purchase carbon credits to offset their carbon footprint. The credits are generated by climate change mitigation projects like renewable energy programs, methane capture, forest conservation, and more. Carbon credits allow flexibility and market-based system for reducing greenhouse gas emissions cost-effectively.

Market Dynamics:
First driver, stringent government regulations regarding emission cuts is driving the growth. Many countries have committed to reduce their carbon emissions as per the Paris Agreement to curb global warming. This is increasing demand for carbon credits from companies struggling to meet emission targets.
Second driver, growing carbon neutrality pledges from large corporations is also fueling the market. More companies are announcing net-zero carbon goals and relying on carbon credits to balance out emissions that cannot be directly avoided or reduced. This is boosting demand.


Segment Analysis
The global carbon credit market is segmented into compliance and voluntary. The compliance segment dominates the market due to strict government regulations regarding carbon emission limits across major industrialized countries. Various industries such as power & utilities, oil & gas, manufacturing, etc. are mandated to compensate their carbon emissions through carbon credits in order to comply with stringent environmental regulations.

PEST Analysis
Political: Stricter government policies and regulations regarding carbon emissions limit across countries is driving the market. For instance, The Paris Agreement aims at keeping global temperature rise well below 2°C.
Economic: Rising economic activities in emerging nations increasing carbon emissions. Carbon trading helps industries to balance carbon footprints in a cost-effective way.
Social: Increasing public awareness about global warming and carbon footprint is encouraging voluntary carbon credit adoption.
Technological: Technologies supporting remote credit trade and carbon accounting is facilitating market growth. Blockchain is being explored to bring more transparency in credit transactions.

Key Takeaways
Global Carbon Credit Market Demand  is expected to witness high growth, exhibiting CAGR of 24% over the forecast period, due to increasing stringent government regulations limiting carbon emissions worldwide. The market size is expected to reach US$ 106.42 Bn by 2030 from US$ 31.54 Bn in 2023.

Regionally, Asia Pacific dominates the carbon credit market and is expected to continue its dominance during the forecast period. This is attributed to the presence of major carbon emitters such as China and India in the region along with implementation of carbon trading programs in countries like China, Japan, South Korea, etc.

Key players operating in the global carbon credit market are 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. WGL Holdings, Inc. and Enking International lead the market owing to their expertise and resource efficiency.

*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 →