Market research reports, consulting: Global Market Insights Inc.
>
>

Carbon Credit Market Size – By Type, By End use, Analysis, Share, Growth Forecast, 2025 – 2034

Report ID: GMI7048
   |
Published Date: December 2024
 | 
Report Format: PDF

Download free sample

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.
 

Carbon Credit Market Trends

Continuous & exponential focus on community growth and environmental conservation has led to preference in the adoption and investment of projects that offer comprehensive social and environmental benefits, promoting carbon trading. Moreover, investment into tokenized carbon credits is streamlining trade which further incurs lower transaction costs, resulting in wider participation whilst advancing the market outlook in concert with the shift towards digitalization.
 

The growing prominence of additionality and permanence is aiding in the establishment of mechanisms to deal with risks including the prohibition of carbon sequestration. Organizations are now using carbon credits to offset their regulation exposure due to climate risks and changes in consumer behavior. The concern for environmental integrity and the market's concern are pushing a constant change and improvement within the market, hence assisting its growth in the given timeframe.
 

Carbon Credit Market Analysis

Carbon Credit Market Size, By Type, 2022 - 2034 (USD Billion)

The compliance carbon credit industry is expected to exceed USD 458 billion by 2034. The growing inter-linkages between carbon credit markets and other environmental markets including renewable energy certificates and biodiversity credits are setting the stage for cross-market sustainability solutions across the globe. In addition, the efforts to scale compliance carbon markets and the science-based targets initiative is aligning with more than a hundred project pursued to accelerate the integration of the development of common standards and methods, thus contributing to the industry growth.
 

Carbon Credit Market Revenue Share, By End Use, 2024

The forestry & land use market will grow at a rate of over 15% by 2034. Increased buying or selling carbon credits are able to take advantage of afforestation and reforestation projects which are becoming an integral part of the carbon credit market, and this is transforming the climate change mitigation process. Moreover, they are getting increasing acceptance for their potential to generate carbon credits and for their effectiveness in restoring ecosystems knows as ‘natural climate solutions, these projects combine land use and carbon sequestration while also bringing benefits of sustained diversity and community participation.
 

U.S. Carbon Credit Market Size, 2022 - 2034 (USD Billion)

The U.S. carbon credit market is set to exceed USD 30 billion 2034, owing to the incorporation of corporate goals concerning sustainability and obligations increasing voluntarily. Corporates across the globe are utilizing carbon offset mechanisms to rapidly reach net-zero carbon emission goals which has resulted in increasing pressure and demand for obtaining high quality validated credits. In addition, enhanced efficiency and transparency achieved through the integrating new technologies such as AI and blockchain for better trading is benefitting the market. There is also a changing preference for investment in co-benefits associated with community growth and conservation of biodiversity, this in turn contributes to the development of the market at country level.
 

In Europe, the carbon credit market has expanded owing to strict climatic policies and the growth of the EU Emissions Trading Scheme, ETS. Various companies are generating and using carbon credits to lower their emissions, in particular to attain specific targets which further enhances the demand for set allowances and offsets. As a result, pushing of carbon neutral certification and science-based targets, businesses have altered their purchasing strategies, thereby augmenting the demand scenario for carbon credit business. There is robust growth in investments for business solutions and carbon capture technologies with long term credit while at the same time looking for advanced options impacting the market on a positive note.
 

Carbon Credit Market Share

A wide array of market players are engaged in carbon trading and businesses are continuously working to combine the use of carbon credits and the improvement of operational efficiencies to build effective and low cost decarbonization strategies. Additionally. digital reporting tools and platforms are being introduced along with a heightened focus of stakeholders on a firm regime of use which permits the carbon credits to be used for a higher platform set of sustainability objectives, to keep everyone informed regarding their effectiveness.
 

Carbon Credit Market Companies

Major players operating in the carbon credit industry are:

  • 3Degrees
  • Allcot
  • Atmosfair
  • Carbon Clear
  • Carbon Collective
  • The Carbon Trust
  • Climeco
  • Climate Impact Partners
  • EcoAct
  • Ecosecurities
  • Green Mountain Energy
  • Shell
  • South Pole
  • Sterling Planet
  • Terrapass
  • Verra
  • WGL Holdings
     

Carbon Credit Industry News

  • In September 2024, as a part of their goal to becoming a key player in the Emissions Trading System by 2030, China began to include the emissions from cement, steel and aluminum manufacturing as a part of the program. The country has a goal to reach zero carbon emissions by 2060 at the latest as part of the Paris Agreement it signed, so it aims to reach its maximum carbon emissions by 2030. This in turn will witness in the market growth for carbon credits, which will aid in meeting the wider climate goals set by the country.
     
  • In July 2024, Verra launched, ABACUS Label that aims to mark transition towards stronger transparency protocols and improving the quality assurance standards alongside adopting innovative strategies towards greenhouse gas removal that will positively impact the voluntary carbon market over time. This initiative is considered a step towards improving the impact and credibility of carbon credits in the voluntary carbon space, thereby adding to the market growth?.
     

This carbon credit market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

Market, By Type

  • Voluntary
  • Compliance

Market, By End use

  • Agriculture
  • Carbon Capture & Storage
  • Chemical Process
  • Energy Efficiency
  • Industrial
  • Forestry & Land use
  • Renewable Energy
  • Transportation
  • Waste Management
  • Others

The above information has been provided for the following regions:

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • Latin America

 

Authors: Ankit Gupta, Shashank Sisodia
Carbon Credit Market Scope
  • Carbon Credit Market Size
  • Carbon Credit Market Trends
  • Carbon Credit Market Analysis
  • Carbon Credit Market Share
Related Reports
    Authors: Ankit Gupta, Shashank Sisodia
    Buy Now
    $4,123 $4,850
    15% off
    $4,840 $6,050
    20% off
    $5,845 $8,350
    30% off
        Buy now
    Premium Report Details

    Base Year: 2024

    Companies covered: 17

    Tables & Figures: 30

    Countries covered: 5

    Pages: 120

    Download Free Sample

    Top