Carbon Credit Market size is set to grow by USD 1437.52 bn from 2024-2028, rising carbon emissions in earth atmosphere to boost the market growth, Technavio

NEW YORK, May 15, 2024 /PRNewswire/ — The global carbon credit market  size is estimated to grow by USD 1437.52 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  31.01%  during the forecast period. 

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Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

End-user (Power, Energy, Transportation, Industrial, and Others), Type (Compliance and Voluntary), and Geography (Europe, Asia, North America, and Rest of World (ROW))

Region Covered

Europe, Asia, North America, and Rest of World (ROW)

Key companies profiled

3Degrees Group Inc., AltaGas Ltd., Anew Climate LLC, Carbon Credit Capital LLC, CarbonBetter, ClearSky Climate Solutions LLC, Climate Bridge Ltd., Climate Impact Partners LLC, ClimatePartner GmbH, ClimeCo LLC, EKI Energy Services Ltd., Finite Carbon Corp., Just Energy Advanced Solutions LLC, Microsoft Corp., NativeEnergy, natureOffice GmbH, NRG Energy Inc., South Pole, Sterling Planet, and Tasman Environmental Markets

Key Market Trends Fueling Growth

The carbon credit market is a significant financial arena for investments, particularly among environmental advocates and entities aiming for net-zero emissions. Tech giants like Stripe, Alphabet, and Meta have pledged USD925 million towards carbon removal. In November 2022, 3Degrees and Merge Electric Fleet Solutions collaborated to monetize charging systems in Clean Fuels States, offsetting EV charging with RECs. This market involves financial support, local communities, climate protection, carbon emission reduction, revenues, development projects, carbon storage, carbon credits, and economic stimuli. Key aspects include carbon neutralization, carbon tax, carbon market, and energy factors. Challenges include fluctuating prices, market volatility, and ensuring the validity and quality of credits from various projects, such as forestry initiatives. 

Market Challenges

  • The carbon credit market is a global platform where carbon credits are bought and sold, influencing carbon emission reduction efforts and climate protection initiatives. Economic incentives, such as carbon taxes and carbon markets, are employed by nations like Canada, China, France, and the US to achieve carbon neutrality by 2050. Carbon credits, derived from various projects including forest management and energy factors, provide financial support for climate goals and development projects. Prices fluctuate due to market challenges, including economic recessions and the validity of credits. Participants include leading companies, seeking to offset their carbon emissions and contribute to conservation, biodiversity, and livelihoods. Carbon credits facilitate carbon storage, decarbonization, and net-zero greenhouse-gas emissions, making them a crucial tool in the fight against climate change.

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Segment Overview 

This carbon credit market report extensively covers market segmentation by

  1. End-user 
  • 1.1 Power
  • 1.2 Energy
  • 1.3 Transportation
  • 1.4 Industrial
  • 1.5 Others
  • Type 
    • 2.1 Compliance
    • 2.2 Voluntary
  • Geography 
    • 3.1 Europe
    • 3.2 Asia
    • 3.3 North America
    • 3.4 Rest of World (ROW)

    1.1 Power-  The carbon credit market segmented by end-user plays a pivotal role in financing carbon emission reduction projects and providing financial support for climate protection initiatives. These projects, often located in local communities, contribute to carbon storage and biodiversity conservation. Revenues generated from carbon credits enable the development of bankable carbon initiatives, fostering economic stimuli and decarbonization efforts. Carbon neutralization projects, such as forest management and renewable energy, offer climate goals that align with the global push towards net-zero greenhouse-gas emissions. However, the carbon market faces challenges, including fluctuating prices, market volatility, and leakage of offsets. Carbon tax and economic recession can also impact the market’s validity and participants’ commitment. Energy factors, such as the shift from fossil fuels to renewable sources, further influence the carbon credit market. Forestry projects, a significant component of the market, require careful management and validation to ensure their carbon credits’ quality and validity. The location of emissions and the harvesting process are crucial factors in determining the carbon credits’ effectiveness in mitigating atmospheric CO2 concentrations.

    For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 – 2022)  – Download a Sample Report

    Research Analysis

    The Carbon Credit Market is a vital component of the voluntary carbon market, where entities purchase Carbon Credits to offset their Carbon Emissions. These credits are derived from projects that reduce, avoid, or remove Greenhouse Gas Emissions. Forestry projects, such as reforestation and afforestation, are common sources of Carbon Credits. However, it is essential to consider leakage of offsets, which refers to the potential for emissions to increase in other areas due to offsetting activities. Decarbonization efforts aim for Net-Zero Greenhouse-Gas Emissions, making the Carbon Credit Market an essential tool for organizations and individuals seeking to achieve this goal. Carbon Storage is another crucial aspect, as Carbon Credits represent the long-term storage of Carbon Dioxide. The Carbon Credit Market plays a significant role in the global transition towards a low-carbon economy.

    Market Research Overview

    The Carbon Credit Market refers to a system that allows organizations and individuals to buy and sell the right to emit greenhouse gases. This market is a crucial component of carbon offsetting, a strategy used to reduce an entity’s carbon footprint by purchasing carbon credits instead of reducing emissions directly. The market operates based on the principle of the Cap-and-Trade system, where a limit is set on the total amount of carbon emissions, and allowances are allocated and traded. Companies or countries that emit less than their allocated limit can sell their excess allowances to those who exceed their limit. The market facilitates the transition towards a low-carbon economy by providing economic incentives for reducing emissions. Key components include offset projects, carbon credits, and regulatory frameworks.

    Table of Contents:

    1 Executive Summary
    2 Market Landscape
    3 Market Sizing
    4 Historic Market Size
    5 Five Forces Analysis
    6 Market Segmentation

    • End-user
      • Power
      • Energy
      • Transportation
      • Industrial
      • Others
    • Type
      • Compliance
      • Voluntary
    • Geography
      • Europe
      • Asia
      • North America
      • Rest Of World (ROW)

    7 Customer Landscape
    8 Geographic Landscape
    9 Drivers, Challenges, and Trends
    10 Company Landscape
    11 Company Analysis
    12 Appendix

    About Technavio

    Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

    With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

    Contacts

    Technavio Research
    Jesse Maida
    Media & Marketing Executive
    US: +1 844 364 1100
    UK: +44 203 893 3200
    Email: [email protected]
    Website: www.technavio.com/

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    SOURCE Technavio

    Carbon Credit Market size is set to grow by USD 1437.52 bn from 2024-2028, rising carbon emissions in earth atmosphere to boost the market growth, Technavio WeeklyReviewer

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