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Carbon Credit Market Size

Report ID: GMI7048
Published Date: Oct 2023
Report Format: PDF

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Carbon Credit Market Size

Carbon Credit Market was valued at USD 103.8 billion in 2023 and is set to grow at a CAGR of 14.8% during 2024 to 2032. The expansion of carbon pricing mechanisms and the growing demand for corporate sustainability initiatives, supported by favorable government policies will drive business growth. Governments and regulatory authorities are progressively adopting market-driven approaches to incentivize emission reduction and facilitate the carbon credit trade. These approaches encompass carbon pricing mechanisms, carbon taxes, and cap-and-trade systems, all of which are broadening the market's possibilities.

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The rising interest in nature-based solutions, including reforestation, afforestation, and sustainable land management projects, is gaining traction in the carbon credit market. These initiatives efficiently capture carbon while delivering added advantages such as biodiversity preservation and ecosystem restoration. In addition, technological advancements, particularly in data analytics and blockchain technology, are enhancing transparency and traceability in the carbon credit trading process. Blockchain is utilized to create immutable records of carbon credits, reducing the potential for double counting or fraudulent activities, thus strengthening the industry's outlook.

Carbon Credit Market Report Attributes
Report Attribute	Details
Base Year:	2023
Carbon Credit Market Size in 2023:	USD 103.8 Billion
Forecast Period:	2024 - 2032
Forecast Period 2024 - 2032 CAGR:	14.8%
2032 Value Projection:	USD 343.6 Billion
Historical Data for:	2019 to 2023
No. of Pages:	170
Tables, Charts & Figures:	158
Segments covered:	Type, End Use, & Region
Growth Drivers:	Stern government policies and regulations Increasing inclination towards biodiversity and conservation goals Growing number of carbon standards
Pitfalls & Challenges:	Lack of awareness & falsified emission data

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The rising social and environmental relevance, combined with the expansion of government policies and regulations, is anticipated to propel business growth. This is largely attributed to the increasing focus of investors and consumers on the social and environmental consequences of carbon credit projects. Initiatives that generate broader environmental and social benefits are garnering increased attention and investment. Additionally, government policies, incentives, and regulatory actions remain influential factors shaping the market development.

Authors: Ankit Gupta, Shashank Sisodia

Frequently Asked Questions (FAQ) :

The market valuation of carbon credit was surpassed USD 103.8 billion in 2023 and is expected to expand at over 14.8% CAGR from 2024 to 2032, driven by the expansion of carbon pricing mechanisms and the growing need for corporate sustainability initiatives, supported by favorable government policies.

Compliance carbon credit or carbon offset market is poised to expand at over 13.5% CAGR from 2023 to 2032, owing to the rising commitment of organizations to carbon neutrality along with voluntary pledges and mandatory compliance mandates.

Europe held over 76.1% share of the carbon credit industry in 2022 and is expected to grow at notable CAGR from 2023 to 2032, driven by the combination of regulatory measures, corporate commitment, and public pressure to promote carbon neutrality in the region.

Some leading carbon credit firms are The Carbon Trust, Climate Impact Partners, South Pole, 3Degrees, VERRA, TerraPass, CarbonClear, PwC, EcoAct, ClimeCo LLC., Ecosecurities, ALLCOT, The Carbon Collective Company, Sterling Planet Inc., WGL Holdings, Inc., and Green Mountain Energy Company.