Product Code: GVR-4-68040-080-7
Carbon Credit Market Growth & Trends
The global carbon credit market size is expected to reach USD 4,734.35 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a lucrative CAGR of 38.7% during the forecast period. The demand for carbon credits has been rising substantially in recent years due to various factors, such as several governments introducing policies and regulations that are aimed at reducing greenhouse gas emissions.
The significant demand for carbon credits has been helped by companies increasingly recognizing the importance of sustainability and of reducing their carbon footprint as part of their corporate social responsibility initiatives. This has led to carbon credits becoming a vital aspect for organizations to offset their emissions. In addition, growing concerns about climate change and its potential impacts have also created strong traction in the carbon credits space.
Governments around the world are implementing policies and regulations to reduce greenhouse gas emissions and combat climate change. Many of these regulations require companies to offset their emissions by purchasing carbon credits. These factors are expected to drive the compliance carbon credit market globally.
Compliance was the dominant segment in the global market for carbon credits in 2022 with a revenue share of 98.91%. The compliance carbon credit market is where companies and organizations that are regulated by a government or a specific authority are required to offset their carbon emissions by purchasing carbon credits. These credits represent a reduction in greenhouse gas emissions from an approved project, such as renewable energy or energy efficiency initiatives.
The COVID-19 pandemic has been a major restraint to the advancement of the carbon credit market, owing to several factors including reducing operational costs by end-users, along with extensive disruption in the availability of spare parts across the globe due to sluggish manufacturing activities and logistics issues.
Carbon Credit Market Report Highlights
- In 2022, compliance emerged as the largest type segment and accounted for 98.91% of the revenue share. Several advantages due to regulated policies generated by governments are supporting the market growth
- In 2022, the avoidance/reduction projects segment accounted for the largest share of 66.88% in the global market for carbon credits. The growing number of renewable energy projects requiring carbon offset is expected to augment market growth over the forecast period
- The U.S. emerged as the largest carbon credit market in North America in 2022. The carbon credit market is primarily driven by a combination of state-level programs and voluntary markets in the country
- In Europe, the UK emerged as the largest country in terms of revenue generation for the carbon credit market, with a share of 38.43% in 2022. Supportive government policies and frameworks toward the positive scaling of emission trading schemes are fostering regional growth
- In 2022, the power segment in the end-use category dominated the global market for carbon credits with a share of 31.01%. Increasing investments in the power sector, along with the capture of carbon to enhance the trading platform, will further support segment growth over the forecast period
Table of Contents
Chapter 1 Methodology & Scope
- 1.1 Market Segmentation & Scope
- 1.2 Information Procurement
- 1.2.1 Purchased Database
- 1.2.2 GVR's Internal Database
- 1.2.3 Secondary Type
- 1.2.4 Third-Party Perspective
- 1.2.5 Primary Research
- 1.3 Information Analysis
- 1.3.1 Data Analysis Models
- 1.4 Market Formulation and Data Visualization
- 1.5 Data Validation and Publishing
Chapter 2 Executive Summary
- 2.1 Market Snapshot
- 2.2 Segment Snapshot
- 2.3 Competitive Landscape Snapshot
Chapter 3 Market Variables, Trends, & Scope
- 3.1 Penetration & Growth Prospect Mapping
- 3.2 Industry Value Chain Analysis
- 3.3 Market Trends
- 3.4 Technology Trends
- 3.5 Market Dynamics
- 3.5.1 Market Driver Impact Analysis
- 3.5.2 Market Restraint Impact Analysis
- 3.5.3 Industry Challenges
- 3.5.4 Industry opportunities
- 3.6 Regulatory Framework
- 3.6.1 European Union (EU) Regulations
- 3.6.2 U.S. regulations
- 3.6.3 India Regulations
- 3.7 Business Environment Analysis: Carbon Credits Market
- 3.7.1 Industry Analysis - Porter's Five Forces
- 3.7.2 PESTEL analysis
Chapter 4 Carbon Credits Market: Type Estimates & Trend Analysis
- 4.1 Type Movement Analysis & Market Share, 2022 & 2030
- 4.2 Carbon Credits Market Estimates & Forecast, By Type (USD Million)
- 4.2.1 Compliance
- 4.2.2 Voluntary
Chapter 5 Carbon Credits Market: Project Type Estimates & Trend Analysis
- 5.1 Project Type Movement Analysis & Market Share, 2022 & 2030
- 5.2 Carbon Credits Market Estimates & Forecast, By Project Type (USD Million)
- 5.2.1 Avoidance/Reduction projects
- 5.2.2 Removal/Sequestration projects
- 5.2.2.1 Nature-based
- 5.2.2.2 Technology-based
Chapter 6 Carbon Credits Market: End-use Estimates & Trend Analysis
- 6.1 End-use Movement Analysis & Market Share, 2022 & 2030
- 6.2 Carbon Credits Market Estimates & Forecast, By End-use (USD Million)
- 6.2.1 Power
- 6.2.2. Energy
- 6.2.3. Aviation
- 6.2.4. Transportation
- 6.2.5. Buildings
- 6.2.6. Industrial
- 6.2.7. Others
Chapter 7 Carbon Credits Market: Regional Estimates & Trend Analysis
- 7.1 Carbon Credits Market: Regional Outlook
- 7.2 North America
- 7.2.1 North America Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.2.2 U.S.
- 7.2.2.1 Key country dynamics
- 7.2.2.2 U.S. Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.2.3 Canada
- 7.2.3.1 Key country dynamics
- 7.2.3.2 Canada Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.2.4 Mexico
- 7.2.4.1 Key country dynamics
- 7.2.4.2 Mexico Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.3 Europe
- 7.3.1 Europe carbon credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.3.2 Germany
- 7.3.2.1 Key country dynamics
- 7.3.2.2 Germany Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.3.3 UK
- 7.3.3.1 Key country dynamics
- 7.3.3.2 UK Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.3.4 France
- 7.3.4.1 Key country dynamics
- 7.3.4.2 France Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.3.5 Spain
- 7.3.5.1 Key country dynamics
- 7.3.5.2 Spain Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.3.6 Italy
- 7.3.6.1 Key country dynamics
- 7.3.6.2 Italy Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.3.7 Netherlands
- 7.3.7.1 Key country dynamics
- 7.3.7.2 Netherlands Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.3.8 Sweden
- 7.3.8.1 Key country dynamics
- 7.3.8.2 Sweden Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.4 Asia Pacific
- 7.4.1 Asia Pacific Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.4.2 China
- 7.4.2.1 Key country dynamics
- 7.4.2.2 China Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.4.3 Japan
- 7.4.3.1 Key country dynamics
- 7.4.3.2 Japan Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.4.4 South Korea
- 7.4.4.1 Key country dynamics
- 7.4.4.2 South Korea Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.4.5 Australia
- 7.4.5.1 Key country dynamics
- 7.4.5.2 Australia Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.4.6 India
- 7.4.6.1 Key country dynamics
- 7.4.6.2 India Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.5 Central & South America
- 7.5.1 Central & South America Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.5.2 Brazil
- 7.5.2.1 Key country dynamics
- 7.5.2.2 Brazil Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
- 7.6 Middle East and Africa
- 7.6.1 Middle East and Africa Carbon Credits market estimates & Forecasts, 2018 - 2030 (USD Million)
Chapter 8 Carbon Credits Market: Competitive Landscape
- 8.1 Recent Developments & Impact Analysis, by Key Market Participant
- 8.2 Company Categorization
- 8.3 Participant's Overview
- 8.4 Financial Performance
- 8.5 Product Benchmarking
- 8.5.1 EKI Energy Services Limited
- 8.5.2 NativeEnergy
- 8.5.3 ClearSky Climate Solutions
- 8.5.4 3Degrees Group, Inc.
- 8.5.5 Torrent Power Limited
- 8.5.6 WGL Holdings Inc
- 8.5.7 Carbon Care Asia Ltd.
- 8.5.8 CarbonBetter
- 8.5.9 Finite Carbon
- 8.5.10 South Pole Group
- 8.6 Company Market Positioning
- 8.7 Company Market Share Analysis, 2022
- 8.8 Company Heat Map Analysis
- 8.9 Strategy Mapping
- 8.9.1 Expansions
- 8.9.2 Mergers & acquisitions
- 8.9.3 Collaborations
- 8.9.4 New product launches
- 8.9.5 Research & Development