Carbon Credit Market Size

Carbon Credit Market Size

The global carbon credit market was valued at USD 114.8 billion in 2024 and is estimated to grow at a CAGR of 15.8% from 2025 to 2034. The evolving markets for carbon credits are witnessing to be a valuable medium in overcoming climate-related challenges which is facilitated by the growing readiness of businesses to work towards set sustainability goals as well as comply with ESG requirements. Corporations across the globe are buying carbon credits which has resulted in the increased demand for credit for carbon mitigation and, hence there have been robust developments in the trading platforms along with the projects targeting the carbon offset.

Advancements in technology is transforming the marketplace with AI and blockchain being used in increasing the efficiency, traceability, and transparency in transactions, therein improving accuracy have augmented the market growth. The emergence of various technologies such as the direct air capture, nature-based methods including afforestation and reforestation have influenced the greater variety of options available to trade in carbon credits. Furthermore, there is an increasing trend for participants in the market to place their efforts on high-end credits that have been proportionately inspected and are certified by reputable institutions, as the projects undertaken are able to achieve measurable goals, thereby contributing to the market growth.