Global Carbon Credit Market Analysis and Forecast 2023-2030 - Europe's Leadership Upheld by Ambitious Climate Goals

DUBLIN , Dec. 20, 2023 /PRNewswire/ -- The "Carbon Credit Market - Global Carbon Credit Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030" report has been added to ResearchAndMarkets.com's offering.

The global carbon credit market is on the brink of significant expansion, with a projected compound annual growth rate (CAGR) of 30.5% from 2023 to 2030. By the end of this period, the market is anticipated to reach a staggering valuation of $2 trillion. This unprecedented growth is fueled by a multitude of factors, including governmental policies aimed at reducing greenhouse gas emissions, corporate sustainability initiatives, and an increasing awareness of climate change.

Over the past few years, a growing demand for carbon credits has emerged, driven by governmental regulations mandating emission reductions. Companies subject to these regulations often need to purchase carbon credits to offset their emissions and comply with these rules. For instance, the Energy Conservation Bill 2022 in India has paved the way for establishing carbon credit markets in the country. Moreover, companies are increasingly recognizing the importance of sustainability and are actively reducing their carbon footprint as part of their corporate social responsibility initiatives. This sustained demand for carbon credits is a result of companies' efforts to offset emissions and contribute to environmental conservation.

Key Report Findings

• The carbon credit market, encompassing both compliance and voluntary credits, is expected to witness substantial revenue expansion between 2023 and 2030.
• The power industry, characterized by substantial energy consumption and emissions, has secured the largest market share within the carbon credit market.
• Compliance credits, which adhere to mandatory regulatory requirements, dominate the carbon credit market.
• Europe continues to lead the global carbon credit market, while Asia Pacific experiences the strongest growth, driven by rapid industrialization and environmental consciousness.

Compliance Type Segment Captures the Largest Market Share

Compliance-type carbon credits dominate the carbon credit market due to the prevalence of government-led regulatory frameworks and emission reduction targets. These credits offer a secure and reliable market, often backed by government policies and regulations. Compliance credits are a preferred choice for companies seeking a long-term and legally recognized solution to meet their emission reduction obligations.

Power Industry Leads End-Use Categories

The power industry commands the largest market share within the carbon credit market. This is primarily because of its significant contribution to global greenhouse gas emissions. Power generation from fossil fuels is a major source of carbon dioxide emissions, prompting governments worldwide to implement stringent regulations and targets to reduce emissions from the power industry. Companies in this sector must either reduce their emissions or purchase carbon credits, driving a substantial demand for carbon credits.

Growth Opportunities Across Regions

Europe's Leadership Upheld by Ambitious Climate Goals

Europe continues to lead the carbon credit market, driven by initiatives like the European Union Emissions Trading System (EU ETS). This cap-and-trade system sets emission reduction targets for various industries and allocates carbon credits to companies based on their emissions. Companies exceeding their allocated limits must purchase additional carbon credits, creating a high demand for carbon credits in the region. The region's strong commitment to climate action, ambitious climate policies, and mature market infrastructure contribute to Europe's dominant position in the global carbon credit market.

Asia Pacific Takes Significant Strides

Asia Pacific is the fastest-growing region in the carbon credit market due to rapid industrialization, economic development, and a growing awareness of environmental impacts. Countries like China, India, and Japan are actively investing in carbon offset projects to achieve emission reduction goals. Additionally, investors in the region are increasingly interested in sustainable investments, further boosting demand for carbon credits.
The region's financial and technological infrastructure facilitates carbon credit trading and investment, contributing to its rapid growth.

Carbon Credit Market: Competitive Landscape

Prominent 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.

These industry leaders are driving innovation and sustainability within the carbon credit market, underlining its crucial role in global efforts to combat climate change and promote a sustainable future.

Key Topics Covered:

1. Executive Summary

 2. Market Overview
2.1. Market Definitions and Segmentations
2.2. Market Dynamics
2.3. Value Chain Analysis
2.4. Porter's Five Forces Analysis
2.5. Covid-19 Impact Analysis
2.6. Impact of Ukraine-Russia Conflict
2.7. Economic Overview
2.7.1. World Economic Projections
2.8. PESTLE Analysis

 3. Global Carbon Credit Market Outlook, 2018 - 2030
3.1. Global Carbon Credit Market Outlook, by Type, Value (US$ Bn), 2018 - 2030
3.1.1. Key Highlights
3.1.1.1. Voluntary Market
3.1.1.2. Compliance Market
3.2. Global Carbon Credit Market Outlook, by Project Type, Value (US$ Bn), 2018 - 2030
3.2.1. Key Highlights
3.2.1.1. Avoidance/Reduction Projects
3.2.1.2. Removal/Sequestration Projects
3.3. Global Carbon Credit Market Outlook, by End-User, Value (US$ Bn), 2018 - 2030
3.4. Global Carbon Credit Market Outlook, by Region, Value (US$ Bn), 2018 - 2030

 4. North America Carbon Credit Market Outlook, 2018 - 2030

 5. Europe Carbon Credit Market Outlook, 2018 - 2030

 6. Asia Pacific Carbon Credit Market Outlook, 2018 - 2030

 7. Latin America Carbon Credit Market Outlook, 2018 - 2030

 8. Middle East & Africa Carbon Credit Market Outlook, 2018 - 2030

 9. Competitive Landscape

• EKI Energy Services
• South Pole Group
• 3Degrees
• Finite Carbon
• Native Energy
• Climeco
• CarbonBetter
• Tasman Environmental Markets
• Carbon Care Asia
• Moss Earth
• ClimatePartner
• Terrapass
• Climate Impact Part

For more information about this report visit https://www.researchandmarkets.com/r/kfl60e

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