February 22, 2024

Carbon Credit Market Poised for Remarkable Growth with a 30.5% CAGR, Expected to Reach US$2 Trillion by 2030

The global carbon credit market is on the brink of unprecedented growth, with a projected CAGR of 30.5% expected during the assessment period from 2023 to 2030. This substantial expansion is driven by a multitude of factors, including the implementation of governmental policies and legislation aimed at curbing greenhouse gas emissions.

Companies, in response to these regulations, are increasingly purchasing carbon credits to offset emissions, thereby ensuring compliance with environmental rules. For instance, India recently passed the Energy Conservation Bill 2022, paving the way for carbon credit markets. Moreover, the growing recognition of sustainability’s significance, along with corporate social responsibility initiatives to reduce carbon footprints, further fuels the demand for carbon credits.

Key Report Findings

  • Explosive Market Growth: The carbon credit market, encompassing both compliance and voluntary credits, is set to experience substantial revenue expansion during the 2023-2030 period.
  • Power Sector Dominance: The power sector leads in the carbon credit market due to significant energy consumption and emissions.
  • Compliance Rules: Compliance-type credits hold the largest market share as they are required by regulatory mandates.
  • European Leadership: Europe maintains its leadership in the carbon credit market, while Asia Pacific witnesses the most robust growth by 2030.

Growth Drivers

Growing Awareness About Climate Change: Increasing awareness of climate change among the public, businesses, and governments is a pivotal driver for the carbon credit market. Stricter environmental regulations, sustainability commitments, and consumer preferences for eco-friendly products and services have amplified the demand for carbon credits.

Stringent Government Regulations and Policies: Government regulations, including carbon pricing mechanisms, emission reduction targets, and support for carbon offset projects, are driving the market by compelling businesses to reduce emissions and invest in carbon credits to meet regulatory obligations.

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Challenges

Varying Prices of Carbon Credits: The volatility in carbon credit prices poses challenges for planning emissions reduction strategies. Unpredictable prices may discourage businesses from participating in the market or investing in carbon offset projects, impacting long-term sustainability efforts.

Overview of Key Segments

Compliance Type Segment Dominates: Compliance-type credits, supported by government regulations and mandates, hold the largest market share due to their reliability and acceptance in international markets.

Power Industry Takes the Lead: The power sector, with its substantial emissions, leads in the carbon credit market. The sector’s transformation toward cleaner energy sources while offsetting emissions contributes to its dominance.

Growth Opportunities Across Regions

Ambitious Climate Goals Uphold Europe’s Leadership: Europe’s robust carbon credit market is driven by the well-established European Union Emissions Trading System (EU ETS), ambitious climate policies, and a supportive market infrastructure.

Asian Markets Surge Ahead: Asia Pacific, propelled by rapid industrialization, climate policies, and growing environmental awareness, is the fastest-growing region. Active investments in carbon offset projects and ESG investing boost demand for carbon credits.

Carbon Credit Market: Competitive Landscape

Leading players in the carbon credit market include EKI Energy Services Ltd., 3Degrees, CarbonBetter, South Pole Group, Finite Carbon, Native Energy, Climeco LLC, Tasman Environmental Markets, Carbon Care Asia Limited, Moss Earth, ClimatePartner GmBH, Terrapass, Climate Impact Partners, and Carbon Credit Capital.

 

Browse Global Carbon Credit Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 – (By Type Coverage, By Project Type Coverage, By End-use Industry Coverage, By Geographic Coverage and By Company): https://www.fairfieldmarketresearch.com/report/carbon-credit-market

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Activated Carbon Market: https://www.fairfieldmarketresearch.com/report/activated-carbon-market

Carbon Black Market: https://www.fairfieldmarketresearch.com/report/carbon-black-market

    

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This press release first seen on Brilad