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

Compliance Carbon Credit Market Size

The global compliance carbon credit market was valued at USD 113.1 billion in 2024 and is estimated to reach USD 458.4 billion by 2034, growing at a CAGR of 15.6% from 2025 to 2034, led by sustainability programs, green legislation, and an increased emphasis on social responsibility. Carbon credits are now being considered strategic tools by a wide array of companies to improve reputation, engage investors, and fulfill overall Environmental, Social, and Governance (ESG) goals.
 

Increased standardization and legitimacy in procedures, such as credit confirmation and investment protocols, have raised participation and trust in different industries. Advances in technology, specifically the incorporation of blockchain are transforming the verification, monitoring, and carbon credit trading. Blockchain's distributed ledger provides a transparent and unalterable record, overcoming challenges including double counting and deception. For instance, in March 2025, Stankevicius International is going to release a real-time Carbon Credit Trading TestNET with the goal of boosting the efficiency and transparency of carbon credit transactions.
 

Policy action has also played a major role in shaping the market environment. As seen, during the COP29 conference in November 2024, nations agreed to create a global industry of carbon credits that will steer billions of dollars into climate change mitigation programs. As part of the deal is the launch of a centralized UN trading system in 2025, offering a formalized system of international carbon credit trades.
 

Various nations are enacting national policies to harmonize with international climate targets. For instance, Turkey's governing party tabled a bill on climate change during February 2025, with the target of achieving net-zero emissions in 2053. Likewise, in December 2024, the Commodity Futures Trading Commission (CFTC) in the U.S. published its set of federal regulations focusing the largely unregulated carbon offsets market. Such measures require exchanges to authenticate carbon offset derivatives, which increases the markets functional standards and improves the liquidity and price transparency of the market.
 

Compliance Carbon Credit Market Trends

The need for compliance carbon offsets is growing due to increased regulatory attention on corporations and the government’s own attempts to reach tough carbon caps. The demand shift has fundamentally changed the organizational structure of the market allowing companies to satisfy sustainability standards that were difficult to meet through emissions reduction.
 

Compliance solutions, such as reforestation, afforestation, and land use change towards more sustainable practices have received greater focus lately due to their potential of carbon sinks and biodiversity restoration through ecosystem restoration. The development of analytics in conjunction with blockchain technology for carbon accounting is improving compliance carbon credit markets by increasing transparency and tracking.
 

The distributed ledger technology of blockchain offers a solution to the problems associated with carbon credits trade by providing a secure and verifiable record of credit transactions, thus eliminating the opportunities for double counting and fraud. Northern Trust came out with a responsive solution in the form of a blockchain-based infrastructure for generating, verifying, and trading carbon credits in January 2025, where project developers will be able to the same in near real time which increases the efficiency of the compliance carbon credit market.
 

The carbon offset market for compliance has changed drastically due to policy. The European Union introduced the Carbon Border Adjustment Mechanism in 2023, which was to avoid leakage and provide emission reduction. Some products will face a carbon tax upon importation and is anticipated to alter how nations trade with one another and alter bottom line behavior worldwide.
 

The sector is yet to attain its best possible, with business companies remaining non-compliant and still taking advantage of offsetting schemes without actual reduction of emissions. Problems have been raised for global carbon markets in the COP29 conference that took place in Baku, Azerbaijan in late 2024. Whereas the initial setup was presented within the conference, its operation and effectiveness became issues which needed concern, bringing into question greater scrutiny to support the achievement of emission reduction aims.
 

Compliance Carbon Credit Market Analysis

• The compliance CC industry for the years including 2022, 2023, & 2024 was valued at USD 97 billion, USD 104.1 billion, and USD 113.1 billion respectively. The compliance carbon credit industry is increasing significantly with increasing environmental regulations, heightened carbon price mechanisms, and greater corporate sustainability initiatives.
   
• Governments across the various geographies are setting more stricter greenhouse gas reduction targets, which find expression in higher demand for compliance credits under cap-and-trade systems. The EU ETS continues to be a leading entity, while North America and Asia-Pacific are adopting their regulatory regimes on regular basis.
   
• The application of carbon markets in emerging markets is providing new trading opportunities. The increasing price of carbon credits is inducing industries to make investments in cleaner technology and energy-saving measures. Volatility in the market continues to be a matter of concern as a result of policy uncertainty and volatile credit supply.
   

• The renewable energy industries dominated 38% share of the compliance carbon credit market  in 2024. The use of cap-and-trade system together with government policies is fostering investment into clean energy by allowing power producers credits for replacing high carbon electricity with renewable energy which is enhancing market dynamics.
   
• Carbon capture and storage end use industry will witness a compound annual growth rate of over 21% through 2034 owing to rising government mandates for CCS integration, fostering investments in storage infrastructure. Compliance industry rewards large-scale CCS deployment across cement, power plants, and steel industries by offering tradeable credits.
   
• Forestry and land use industry catered a market share of over 22% in the year 2024 owing to the rising sequestration of CO? in biomass & soils through compliance regulated afforestation, reforestation, and conservation projects. Regulatory bodies control land use change to mitigate deforestation & degradation, thereby complementing the compliance carbon credit market scenario.
   
• Verified and government regulated policies & programs are augmenting the compliance industry for agriculture end use. As illustrated, in 2024 the U.S. Department of Agriculture announced the establishment of greenhouse gas technical assistance provider and third-party verifier program to facilitate various farmers to participate in carbon trading market.
   
• Heightened concern towards energy efficiency across manufacturing, buildings, & commercial industries is leading to the market growth. The energy efficiency industry will grow at a CAGR of over 15% till 2034 owing to efficiency improvements that lower carbon intensity and aligns with emissions cap, thereby supporting net-zero goals and corporate sustainability mandates.
   
• The chemical process end use for compliance carbon offset industry will cross over USD 9.5 billion by 2034 owing to increasing carbon credit generation by adopting low-carbon feedstocks and energy efficient production. Additionally, industry mechanisms reward companies for reducing process emissions through various emissions including green hydrogen, bio-based chemicals, and alternative reaction pathways.
   

• The U.S. compliance carbon credit market in the year 2022, 2023, & 2024 was USD 5.2 billion, USD 7.8 billion, and 8.4 billion respectively. Implementation of federal carbon pricing & IRA enactment coupled with cap-and-trade program expansion is boosting compliance credit demand across regulated sectors. To illustrate, the RGGI was recently expanded to add Pennsylvania in the year 2024, hence bolstering power plant emission reduction goals for the participating states.
   
• The Europe region served a market share of more than 80% in 2024 due to constricting emissions cap combined with the increase in carbon border adjustments mechanism (CBAM). As illustrated, the EU extended CBAM reporting obligations to various sectors including organic chemicals & polymers, which in turn pushed the global exporters to comply with the stricter carbon credit policies across the region. Additionally, the EU ETS tightened its emission cap in 2024 by increasing carbon pricing which in turn fostered the stricter adoption of carbon trading system in region.
• Asia Pacific compliance carbon credit market will grow at a CAGR of over 16% up to 2034 owing to emerging compliance carbon industry along with the expansion of various emission trading schemes across China, South Korea, Australia, among others. Likewise, India has also finalized regulations in February 2025, to launch its compliance carbon market for high emission industries including oil refining & power generation.
   
• Middle East & Africa compliance carbon credit market is picking up pace with national net-zero plans and policy moves. The UAE introduced its compliance carbon market system in 2024, mandating major emitters to cover emissions in accordance with its Net Zero 2050 ambitions. Saudi Arabia is building its ETS, with a specific emphasis on carbon credit trading in the oil and gas industry. South Africa increased its carbon tax in 2024, and hence, the demand for compliance credits, whereas Qatar's LNG sector is buying credits to comply with European CBAM requirements.
   
• The Latin America has experienced an amplified development because of action taken by some regulators in the region who came up with emission reduction measures. Brazil started a carbon offset market in 2024, which requires big carbon energy industries to purchase permits, thereby boosting trade activities in the region. Mexico increased the level of its Emissions Trading System (ETS) from trial implementation to full implementation, which now encompasses the energy, manufacturing, and transportation industries. Similarly, Chile extended its carbon tax regime in 2025 and compelled more buy-ins of credits along with inclusion of foreign compliance credits.
   

Compliance Carbon Credit Market Share

Top 5 companies such as Shell, Verra, Ecosecurities, The Carbon Trust, and CarbonClear control more than 40% of the market worldwide. Sustained attention towards combining other industries' climate targets with compliance carbon credit schemes, the competitive landscape is witnessing a paradigm change around the world. Rather than concentrating on offering protection and expansion companies are now focusing on establishing partnerships with non-profit groups and alliances with regulatory agencies to produce emission reduction initiatives for sale.
 

Compliance Carbon Credit Market Companies

• Verra offers certification for carbon credit under various emissions trading systems across the globe. In 2023, the company generated revenue of approximately USD 29 million. Further, the company in September 2024, entered into a MoU with private equity company SustainCert to counter the collective climate action effort.
   
• Shell makes an investment in the carbon offset market as part of its net-zero strategy posted revenue of USD 302 billion in 2024. The company in favor of carbon credit market has operations in EU ETS, China ETS, and California’s cap-and-trade program to augment the business landscape across the globe.
   
• EcoSecurities is a privately owned firm that operates in environmental services, including sourcing, development, and financing for emission reduction & carbon mitigation projects. Additionally, the firm also has a key role in developing carbon credit mechanism for voluntary & compliance carbon industry, thereby infusing the overall carbon credit industry growth.
   
• Carbon Clear is a privately owned firm with operations in carbon accounting software solutions to minimize the environmental footprint. In October 2022, the firm entered into a strategic alliance with Engie to settle and sell verified data-driven carbon credits.
   

Major players operating in the compliance carbon credit market are:

• 3Degrees
• ALLCOT
• Atmosfair
• CarbonClear
• ClimeCo
• Climate Impact Partners
• Ecosecurities
• Green Mountain Energy Company
• Shell
• South Pole
• Sterling Planet Inc.
• TerraPass
• The Carbon Collective Company
• The Carbon Trust
• VERRA
• WGL Holdings, Inc.
   

Compliance Carbon Credit Industry News

• In February 2025, the Turkish government introduced a comprehensive climate change bill to parliament as part of an effort to meet the country's 2053 net-zero emission target. The bill, as set forth, involves the establishment of a carbon market board and an emissions trading system (ETS). The ETS will allow greenhouse gas emission allowances to be traded as capital market instruments and call for permit-holding requirements by emitting companies.
   
• The Vietnamese government sanctioned in January 2025 a plan to establish a indigenous carbon market that will aid the economy in pursuing net-zero emissions by 2050. The plan stipulates that there would be a pilot ETS launch in June 2025 and complete introduction in 2029.
   
• New Zealand made a strategic double announcement for the cut in emissions during December of 2024. This came with a high targeted areas for policies to be placed in, for instance, sustainable finance, trading schemes, emission targets, and even for sustainable policies on agriculture, energy, transport, and waste. The goal here is to make sure that emissions remain within the 305-megaton target for the surpass period emissions budget between ‘26 to ‘30’ the zero target metric by ‘50. With such a positive change there are strong indicators that compliance incentive markets will surge in the future.
   
• The Swedish government and Zambia government of Green Economy and Environment have entered into a cooperation agreement on emissions trading in November of 2024. The main objective of this partnership is to support the promotion and development of climate projects that will result in enhanced sustainable development and reduction of emissions. Such steps will greatly improve the carbon market economically and aid in achieving climate mitigation around the world.
   

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

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 and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Denmark
  • Norway
  • France
  • Sweden
• Asia Pacific
  • China
  • Japan
  • New Zealand
• Middle East & Africa
  • South Africa
• Latin America
  • Argentina
  • Chile