Carbon Credit Market size is to grow by USD 1,092.48 billion from 2022 to 2027 | Market is driven by the rising carbon emissions in Earth's atmosphere - Technavio

NEW YORK, July 28, 2023 /PRNewswire/ -- The carbon credit market is to grow by USD 1,092.48 billion from 2022 to 2027, at a CAGR of 30.76% during the forecast period, according to the latest research report from Technavio. Discover Environmental & Facilities Services industry potential and make informed business decisions based on qualitative and quantitative evidence highlighted in Technavio reports. View Sample Report!

The carbon credit market covers the following areas:

• Carbon Credit Market Sizing
• Carbon Credit Market Forecast
• Carbon Credit Market Analysis

Vendor Landscape

The carbon credit market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Vendors Offerings

• 3Degrees Group Inc. - The company offers carbon credit projects such as Giriraj Bundled Wind Project, Meridian SF6 reduction project.
• AltaGas Ltd. - The company offers carbon credit solutions through its subsidiary WGL Holdings. 
• Carbon Credit Capital LLC - The company offers carbon credit solutions such as Carbon Neutral Checkout, Custom Carbon Footprint Calculations, Wholesale Carbon Brokerage, Project Development and Advisory.

For the market's vendor landscape highlights with a comprehensive list of vendors and their offerings - View Sample in a minutes

Key Market Segmentation

This report extensively covers market segmentation by end-user (power, energy, transportation, industrial, and others), type (compliance and voluntary), and geography (Europe, Asia, North America, and Rest of the World (ROW)).

• The power segment will account for a major share of the market's growth during the forecast period. Carbon credits and carbon-neutral projects reduce the power generation industry's reliance on fossil fuels like coal and natural gas, offering a clean and low-risk energy production alternative. To achieve the global goal of limiting temperature rise below 2 degrees Celsius above preindustrial levels, energy production must shift from nonrenewable to renewable sources like hydrokinetics, tidal, solar, and wind power. Global initiatives, including the 2015 Paris Climate Change Agreement, aim to curb carbon emissions from power plants. India is also working towards decarbonizing its economy by establishing a national framework for carbon pricing and setting up an Indian carbon market. With increasing efforts to adopt renewable energy sources and reduce fossil fuel dependency in the power sector, the adoption of carbon credits is expected to drive the market's growth during the forecast period.

View Sample Report in minutes of this report for more highlights into the market segments.

Regional Market Outlook

Europe is estimated to account for 85% of the growth during the forecast period. Technavio's analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In 2022, Europe held a leading position in the global carbon credit market, with Asia and North America following closely. Prominent buyers in this market include developed countries within Europe, such as the UK, Germany, and others. The European Union's implementation of the International Emissions Trading System (ETS) in 2005 has played a crucial role in supporting the development of a Carbon Neutral Industry and achieving its climate-neutral goal by 2050. These factors are expected to drive market growth in the region during the forecast period.

For more key highlights on the regional market share of most of the above-mentioned countries.- View Sample Report

Companies Mentioned

• 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
• Cool Effect Inc.
• EKI Energy Services Ltd.
• Finite Carbon Corp.
• Just Energy Advanced Solutions LLC
• NativeEnergy
• natureOffice GmbH
• NRG Energy Inc.
• South Pole
• Sterling Planet
• Tasman Environmental Markets

What's New? 

• Special coverage on the Russia-Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession  
• Global competitiveness and key competitor positions  
• Market presence across multiple geographical footprints - Strong/Active/Niche/Trivial - buy the report! 

Market Dynamics

Driver

The rising carbon emissions in Earth's atmosphere are a major factor notably driving market growth. Some captured energy, like CO2, Halocarbons, and Methane, acts as greenhouse gases, absorbing and distributing heat to maintain a suitable temperature on Earth. However, excessive greenhouse gas emissions can lead to a rise in Earth's temperature, which is detrimental to supporting life. The increase in CO2 concentrations in the atmosphere contributes to global warming, affecting air temperature, evaporation and causing climate changes worldwide. Despite a slower increase in emissions compared to the global GDP growth rate of 3.2%, there has been a resurgence in emissions following the economic recovery from the COVID-19 crisis in 2021. Factors such as extreme climatic conditions, nuclear power plant outages, and a renewed focus on achieving net-zero carbon emissions have led to the purchase of carbon credits. This rise in CO2 emissions is expected to drive the growth of the market in focus during the forecast period.

Trends

The booming investment and partnership deals are primary trends in the market. Carbon credits have become a popular investment tool for various stakeholders, including governments, businesses, and organizations committed to reducing their carbon footprint and achieving net-zero emissions goals. Notably, partnerships and collaborations between companies like 3Degrees Group Inc., Merge Electric Fleet Solutions Ltd, and Johnson Controls International PLC have been established to promote renewable energy initiatives and carbon reduction processes. For instance, 3Degrees Group Inc. and Merge Electric Fleet Solutions Ltd joined forces to monetize the renewable energy charging scheme by offsetting electric vehicle charges with Renewable Energy Certificates in specific clean fuel states. Similarly, Johnson Controls International PLC partnered with 3Degrees Group, Inc. to accelerate net-zero emission goals through carbon reduction efforts. These funding and collaborative efforts are expected to drive the growth of the market in focus during the forecast period.

Challenge

The fluctuating prices of carbon credits are a major challenge hindering market growth. Several countries, including Canada, France, and New Zealand, have pledged to achieve carbon neutrality by 2050 to maintain a favorable climate on Earth. To attain this goal, they employ measures like carbon taxes and economic incentives. Countries such as Canada, China, France, and the United States participate in a global carbon credit market, where companies and entities buy and sell carbon credits, determining their prices. However, the absence of regulatory bodies to oversee the global carbon credit price per ton leads to price fluctuations. These fluctuations, influenced by policy changes, are expected to hinder the growth of the market in focus during the forecast period.

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Key Topics Covered:

1 Executive Summary

• 1.1 Market overview 
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Global Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market by Geography
• Exhibit 05: Executive Summary – Chart on Market Segmentation by End-user
• Exhibit 06: Executive Summary – Chart on Market Segmentation by Type
• Exhibit 07: Executive Summary – Chart on Incremental Growth
• Exhibit 08: Executive Summary – Data Table on Incremental Growth
• Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem 
• Exhibit 10: Parent market
• Exhibit 11: Market Characteristics

3 Market Sizing

• 3.1 Market definition 
• Exhibit 12: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 13: Market segments

• 3.3 Market size 2022 

• 3.4 Market outlook: Forecast for 2022-2027
• Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ billion)
• Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ billion)
• Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
• Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Global carbon credit market 2017 - 2021
• Exhibit 18: Historic Market Size – Data Table on global carbon credit market 2017 - 2021 ($ billion)

• 4.2 End-user Segment Analysis 2017 - 2021
• Exhibit 19: Historic Market Size – End-user Segment 2017 - 2021 ($ billion)

• 4.3 Type Segment Analysis 2017 - 2021 
• Exhibit 20: Historic Market Size – Type Segment 2017 - 2021 ($ billion)

• 4.4 Geography Segment Analysis 2017 - 2021
• Exhibit 21: Historic Market Size – Geography Segment 2017 - 2021 ($ billion)

• 4.5 Country Segment Analysis 2017 - 2021
• Exhibit 22: Historic Market Size – Country Segment 2017 - 2021 ($ billion)

5 Five Forces Analysis

• 5.1 Five forces summary 
• Exhibit 23: Five forces analysis - Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry 
• Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition 
• Exhibit 29: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by End-user

• 6.1 Market segments 
• Exhibit 30: Chart on End-user - Market share 2022-2027 (%)
• Exhibit 31: Data Table on End-user - Market share 2022-2027 (%)

• 6.2 Comparison by End-user 
• Exhibit 32: Chart on Comparison by End-user
• Exhibit 33: Data Table on Comparison by End-user

• 6.3 Power - Market size and forecast 2022-2027
• Exhibit 34: Chart on Power - Market size and forecast 2022-2027 ($ billion)
• Exhibit 35: Data Table on Power - Market size and forecast 2022-2027 ($ billion)
• Exhibit 36: Chart on Power - Year-over-year growth 2022-2027 (%)
• Exhibit 37: Data Table on Power - Year-over-year growth 2022-2027 (%)

• 6.4 Energy - Market size and forecast 2022-2027
• Exhibit 38: Chart on Energy - Market size and forecast 2022-2027 ($ billion)
• Exhibit 39: Data Table on Energy - Market size and forecast 2022-2027 ($ billion)
• Exhibit 40: Chart on Energy - Year-over-year growth 2022-2027 (%)
• Exhibit 41: Data Table on Energy - Year-over-year growth 2022-2027 (%)

• 6.5 Transportation - Market size and forecast 2022-2027
• Exhibit 42: Chart on Transportation - Market size and forecast 2022-2027 ($ billion)
• Exhibit 43: Data Table on Transportation - Market size and forecast 2022-2027 ($ billion)
• Exhibit 44: Chart on Transportation - Year-over-year growth 2022-2027 (%)
• Exhibit 45: Data Table on Transportation - Year-over-year growth 2022-2027 (%)

• 6.6 Industrial - Market size and forecast 2022-2027
• Exhibit 46: Chart on Industrial - Market size and forecast 2022-2027 ($ billion)
• Exhibit 47: Data Table on Industrial - Market size and forecast 2022-2027 ($ billion)
• Exhibit 48: Chart on Industrial - Year-over-year growth 2022-2027 (%)
• Exhibit 49: Data Table on Industrial - Year-over-year growth 2022-2027 (%)

• 6.7 Others - Market size and forecast 2022-2027
• Exhibit 50: Chart on Others - Market size and forecast 2022-2027 ($ billion)
• Exhibit 51: Data Table on Others - Market size and forecast 2022-2027 ($ billion)
• Exhibit 52: Chart on Others - Year-over-year growth 2022-2027 (%)
• Exhibit 53: Data Table on Others - Year-over-year growth 2022-2027 (%)

• 6.8 Market opportunity by End-user 
• Exhibit 54: Market opportunity by End-user ($ billion)
• Exhibit 55: Data Table on Market opportunity by End-user ($ billion)

7 Market Segmentation by Type

• 7.1 Market segments 
• Exhibit 56: Chart on Type - Market share 2022-2027 (%)
• Exhibit 57: Data Table on Type - Market share 2022-2027 (%)

• 7.2 Comparison by Type 
• Exhibit 58: Chart on Comparison by Type
• Exhibit 59: Data Table on Comparison by Type

• 7.3 Compliance - Market size and forecast 2022-2027
• Exhibit 60: Chart on Compliance - Market size and forecast 2022-2027 ($ billion)
• Exhibit 61: Data Table on Compliance - Market size and forecast 2022-2027 ($ billion)
• Exhibit 62: Chart on Compliance - Year-over-year growth 2022-2027 (%)
• Exhibit 63: Data Table on Compliance - Year-over-year growth 2022-2027 (%)

• 7.4 Voluntary - Market size and forecast 2022-2027
• Exhibit 64: Chart on Voluntary - Market size and forecast 2022-2027 ($ billion)
• Exhibit 65: Data Table on Voluntary - Market size and forecast 2022-2027 ($ billion)
• Exhibit 66: Chart on Voluntary - Year-over-year growth 2022-2027 (%)
• Exhibit 67: Data Table on Voluntary - Year-over-year growth 2022-2027 (%)

• 7.5 Market opportunity by Type 
• Exhibit 68: Market opportunity by Type ($ billion)
• Exhibit 69: Data Table on Market opportunity by Type ($ billion)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 70: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

• 9.1 Geographic segmentation 
• Exhibit 71: Chart on Market share by geography 2022-2027 (%)
• Exhibit 72: Data Table on Market share by geography 2022-2027 (%)

• 9.2 Geographic comparison 
• Exhibit 73: Chart on Geographic comparison
• Exhibit 74: Data Table on Geographic comparison

• 9.3 Europe - Market size and forecast 2022-2027
• Exhibit 75: Chart on Europe - Market size and forecast 2022-2027 ($ billion)
• Exhibit 76: Data Table on Europe - Market size and forecast 2022-2027 ($ billion)
• Exhibit 77: Chart on Europe - Year-over-year growth 2022-2027 (%)
• Exhibit 78: Data Table on Europe - Year-over-year growth 2022-2027 (%)

• 9.4 Asia - Market size and forecast 2022-2027 
• Exhibit 79: Chart on Asia - Market size and forecast 2022-2027 ($ billion)
• Exhibit 80: Data Table on Asia - Market size and forecast 2022-2027 ($ billion)
• Exhibit 81: Chart on Asia - Year-over-year growth 2022-2027 (%)
• Exhibit 82: Data Table on Asia - Year-over-year growth 2022-2027 (%)

• 9.5 North America - Market size and forecast 2022-2027
• Exhibit 83: Chart on North America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 84: Data Table on North America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 85: Chart on North America - Year-over-year growth 2022-2027 (%)
• Exhibit 86: Data Table on North America - Year-over-year growth 2022-2027 (%)

• 9.6 Rest of World (ROW) - Market size and forecast 2022-2027 
• Exhibit 87: Chart on Rest of World (ROW) - Market size and forecast 2022-2027 ($ billion)
• Exhibit 88: Data Table on Rest of World (ROW) - Market size and forecast 2022-2027 ($ billion)
• Exhibit 89: Chart on Rest of World (ROW) - Year-over-year growth 2022-2027 (%)
• Exhibit 90: Data Table on Rest of World (ROW) - Year-over-year growth 2022-2027 (%)

• 9.7 Germany - Market size and forecast 2022-2027
• Exhibit 91: Chart on Germany - Market size and forecast 2022-2027 ($ billion)
• Exhibit 92: Data Table on Germany - Market size and forecast 2022-2027 ($ billion)
• Exhibit 93: Chart on Germany - Year-over-year growth 2022-2027 (%)
• Exhibit 94: Data Table on Germany - Year-over-year growth 2022-2027 (%)

• 9.8 UK - Market size and forecast 2022-2027
• Exhibit 95: Chart on UK - Market size and forecast 2022-2027 ($ billion)
• Exhibit 96: Data Table on UK - Market size and forecast 2022-2027 ($ billion)
• Exhibit 97: Chart on UK - Year-over-year growth 2022-2027 (%)
• Exhibit 98: Data Table on UK - Year-over-year growth 2022-2027 (%)

• 9.9 Italy - Market size and forecast 2022-2027
• Exhibit 99: Chart on Italy - Market size and forecast 2022-2027 ($ billion)
• Exhibit 100: Data Table on Italy - Market size and forecast 2022-2027 ($ billion)
• Exhibit 101: Chart on Italy - Year-over-year growth 2022-2027 (%)
• Exhibit 102: Data Table on Italy - Year-over-year growth 2022-2027 (%)

• 9.10 China - Market size and forecast 2022-2027
• Exhibit 103: Chart on China - Market size and forecast 2022-2027 ($ billion)
• Exhibit 104: Data Table on China - Market size and forecast 2022-2027 ($ billion)
• Exhibit 105: Chart on China - Year-over-year growth 2022-2027 (%)
• Exhibit 106: Data Table on China - Year-over-year growth 2022-2027 (%)

• 9.11 US - Market size and forecast 2022-2027
• Exhibit 107: Chart on US - Market size and forecast 2022-2027 ($ billion)
• Exhibit 108: Data Table on US - Market size and forecast 2022-2027 ($ billion)
• Exhibit 109: Chart on US - Year-over-year growth 2022-2027 (%)
• Exhibit 110: Data Table on US - Year-over-year growth 2022-2027 (%)

• 9.12 Market opportunity by geography 
• Exhibit 111: Market opportunity by geography ($ billion)
• Exhibit 112: Data Tables on Market opportunity by geography ($ billion)

10 Drivers, Challenges, and Trends

• 10.1 Market drivers 

• 10.2 Market challenges 

• 10.3 Impact of drivers and challenges 
• Exhibit 113: Impact of drivers and challenges in 2022 and 2027

• 10.4 Market trends 

11 Vendor Landscape

• 11.1 Overview 

• 11.2 Vendor landscape 
• Exhibit 114: Overview on Criticality of inputs and Factors of differentiation

• 11.3 Landscape disruption 
• Exhibit 115: Overview on factors of disruption

• 11.4 Industry risks 
• Exhibit 116: Impact of key risks on business

12 Vendor Analysis

• 12.1 Vendors covered 
• Exhibit 117: Vendors covered

• 12.2 Market positioning of vendors 
• Exhibit 118: Matrix on vendor position and classification

• 12.3 3Degrees Group Inc. 
• Exhibit 119: 3Degrees Group Inc. - Overview
• Exhibit 120: 3Degrees Group Inc. - Product / Service
• Exhibit 121: 3Degrees Group Inc. - Key offerings

• 12.4 AltaGas Ltd. 
• Exhibit 122: AltaGas Ltd. - Overview
• Exhibit 123: AltaGas Ltd. - Business segments
• Exhibit 124: AltaGas Ltd. - Key offerings
• Exhibit 125: AltaGas Ltd. - Segment focus

• 12.5 Carbon Credit Capital LLC 
• Exhibit 126: Carbon Credit Capital LLC - Overview
• Exhibit 127: Carbon Credit Capital LLC - Product / Service
• Exhibit 128: Carbon Credit Capital LLC - Key offerings

• 12.6 CarbonBetter 
• Exhibit 129: CarbonBetter - Overview
• Exhibit 130: CarbonBetter - Product / Service
• Exhibit 131: CarbonBetter - Key offerings

• 12.7 Climate Impact Partners LLC 
• Exhibit 132: Climate Impact Partners LLC - Overview
• Exhibit 133: Climate Impact Partners LLC - Product / Service
• Exhibit 134: Climate Impact Partners LLC - Key offerings

• 12.8 ClimatePartner GmbH 
• Exhibit 135: ClimatePartner GmbH - Overview
• Exhibit 136: ClimatePartner GmbH - Product / Service
• Exhibit 137: ClimatePartner GmbH - Key offerings

• 12.9 ClimeCo LLC 
• Exhibit 138: ClimeCo LLC - Overview
• Exhibit 139: ClimeCo LLC - Product / Service
• Exhibit 140: ClimeCo LLC - Key offerings

• 12.10 EKI Energy Services Ltd. 
• Exhibit 141: EKI Energy Services Ltd. - Overview
• Exhibit 142: EKI Energy Services Ltd. - Product / Service
• Exhibit 143: EKI Energy Services Ltd. - Key offerings

• 12.11 Finite Carbon Corp. 
• Exhibit 144: Finite Carbon Corp. - Overview
• Exhibit 145: Finite Carbon Corp. - Product / Service
• Exhibit 146: Finite Carbon Corp. - Key offerings

• 12.12 Just Energy Advanced Solutions LLC
• Exhibit 147: Just Energy Advanced Solutions LLC - Overview
• Exhibit 148: Just Energy Advanced Solutions LLC - Product / Service
• Exhibit 149: Just Energy Advanced Solutions LLC - Key offerings

• 12.13 NativeEnergy 
• Exhibit 150: NativeEnergy - Overview
• Exhibit 151: NativeEnergy - Product / Service
• Exhibit 152: NativeEnergy - Key offerings

• 12.14 natureOffice GmbH 
• Exhibit 153: natureOffice GmbH - Overview
• Exhibit 154: natureOffice GmbH - Product / Service
• Exhibit 155: natureOffice GmbH - Key offerings

• 12.15 NRG Energy Inc. 
• Exhibit 156: NRG Energy Inc. - Overview
• Exhibit 157: NRG Energy Inc. - Business segments
• Exhibit 158: NRG Energy Inc. - Key offerings
• Exhibit 159: NRG Energy Inc. - Segment focus

• 12.16 South Pole 
• Exhibit 160: South Pole - Overview
• Exhibit 161: South Pole - Product / Service
• Exhibit 162: South Pole - Key offerings

• 12.17 Tasman Environmental Markets 
• Exhibit 163: Tasman Environmental Markets - Overview
• Exhibit 164: Tasman Environmental Markets - Product / Service
• Exhibit 165: Tasman Environmental Markets - Key offerings

13 Appendix

• 13.1 Scope of the report 

• 13.2 Inclusions and exclusions checklist
• Exhibit 166: Inclusions checklist
• Exhibit 167: Exclusions checklist

• 13.3 Currency conversion rates for US$ 
• Exhibit 168: Currency conversion rates for US$

• 13.4 Research methodology 
• Exhibit 169: Research methodology
• Exhibit 170: Validation techniques employed for market sizing
• Exhibit 171: Information sources

• 13.5 List of abbreviations 
• Exhibit 172: List of abbreviations

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