North America Carbon Credit Market Size - By Type (Voluntary, Compliance), By End Use (Agriculture, Carbon Capture & Storage, Chemical Process, Energy Efficiency, Industrial, Forestry & Land use, Renewable Energy, Waste Management) & Forecast, 2024 - 2032

North America Carbon Credit Market Size

North America Carbon Credit Market was valued at USD 16.3 billion in 2023 and is poised to witness 15.5% CAGR between 2024 and 2032, fueled by the increasing adoption of carbon pricing mechanisms and the rising demand for corporate sustainability efforts, both underpinned by supportive government policies, fueled by the increasing adoption of carbon pricing mechanisms and the rising demand for corporate sustainability efforts, both underpinned by supportive government policies. Government and regulatory bodies are increasingly embracing market-driven strategies to encourage emissions reduction and facilitate carbon credit trading. These strategies encompass a range of initiatives, including carbon pricing mechanisms, carbon taxes, and cap-and-trade systems, all of which are expanding the market's potential and opportunities.
 

The increasing focus on nature-based solutions, encompassing reforestation, afforestation, and sustainable land management projects, is steadily gaining prominence within the carbon credit market. In addition, notable technological advancements, particularly in the realms of data analytics and blockchain technology, are playing a pivotal role in elevating transparency and traceability throughout the carbon credit trading process. The utilization of blockchain, in particular, serves to create immutable records of carbon credits, mitigating the risk of double counting and fraudulent activities, ultimately reinforcing the positive outlook of the industry.
 

The growing significance of social and environmental considerations, coupled with the proliferation of government policies and regulations, is expected to drive the North America carbon credit market. This is predominantly due to the rising emphasis placed by investors and consumers on the societal and environmental impacts of carbon credit projects. Initiatives that yield broader environmental and social advantages are attracting heightened interest and investment. Moreover, the influence of government policies, incentives, and regulatory measures remains pivotal in shaping the carbon credit market. The introduction of new policies and regulatory frameworks has the potential to exert a profound effect on the supply and demand dynamics within the industry.
 

COVID- 19 Impact

The COVID-19 pandemic created both challenges and opportunities for the carbon credit market in North America. While supply-side disruptions affected the generation and verification of carbon credits, demand-side dynamics were influenced by changing corporate priorities and heightened sustainability awareness. The long-term impact on the market depends on how organizations and consumers navigate the post-pandemic landscape and whether sustainability remains a central focus in recovery efforts.
 

North America Carbon Credit Market Trends

The escalating demand for carbon offsets, driven by mounting pressure on both companies and governments to reduce their carbon emissions, is set to reshape the industry. This surge in demand empowers organizations to compensate for emissions that may be challenging to reduce internally, thus driving their sustainability goals forward. Notably, nature-based solutions, including reforestation, afforestation, and sustainable land management projects, have taken center stage. These initiatives not only effectively capture carbon but also deliver additional advantages such as the preservation of biodiversity and the restoration of ecosystems.
 

Advancements in technology, particularly in the fields of data analytics and blockchain, have brought about increased transparency and traceability in the carbon credit trading process. The utilization of blockchain technology is instrumental in creating immutable records of carbon credits, mitigating the risk of double-counting and fraudulent activities.
 

North America Carbon Credit Market Analysis

The carbon offset market is set to grow at a 14.5% CAGR through 2032. The compliance carbon credit market is witnessing dynamic business trends shaped by regulatory changes, market demands, and evolving sustainability goals. Governments and regulatory bodies are consistently raising the bar with more stringent emissions reduction targets, making compliance carbon credits essential for companies. The market is experiencing a surge in demand as organizations commit to carbon neutrality, driven by voluntary pledges and mandatory compliance mandates.
 

• Carbon pricing mechanisms, such as carbon taxes and cap-and-trade systems, are incentivizing companies to invest in these credits.
   
• Nature-based solutions, like reforestation and afforestation projects, are gaining prominence for their carbon sequestration and additional environmental benefits.
   
• Technological advancements, particularly in blockchain and data analytics, are boosting transparency and trust in carbon credit markets.
   
• Companies increasingly integrate compliance carbon credits into their sustainability initiatives, appealing to eco-conscious investors and consumers.
   
• Cross-industry collaborations are also on the rise, as companies join forces to fund and develop carbon offset projects, collectively addressing emissions and advancing sustainability goals.
   

Based on end use, the forestry and land-use end use segment will showcase 15 % growth rate from 2023 to 2032. Afforestation and reforestation projects have emerged as pivotal players in the carbon credit market, spearheading a notable transformation in climate mitigation strategies. These initiatives are garnering increasing recognition for their dual impact—efficiently sequestering carbon while simultaneously championing biodiversity preservation and ecosystem restoration.
 

Governments and entities are steadily launching ambitious reforestation campaigns to combat deforestation and land degradation challenges. These endeavors are significantly bolstering the sector's expansion. Moreover, projects are integrating sustainable land management practices, such as agroforestry and regenerative agriculture, which not only promote soil health but also facilitate carbon sequestration. Factors like community and indigenous involvement, the application of blockchain technology for transparency, and alignment with global initiatives like the Bonn Challenge underscore the multifaceted approach embraced by this sector.
 

In 2022, the U.S. holds 52.2% of the revenue share in the North America carbon credit market. The combination of increasing corporate demand coupled with expanding renewable energy credit (RECs) will fuel the market dynamics. U.S. corporations are showing a growing interest in purchasing carbon credits to offset their emissions and meet sustainability goals. This is driven by investor and consumer pressure for more environmentally responsible business practices. In addition, the market for renewable energy credits, a type of carbon credit, is experiencing growth owing to increasing concern for energy securities.  A wide variety of organizations are procuring RECs to demonstrate their commitment to using renewable energy sources.

Carbon credits are integral to these commitments, allowing businesses to demonstrate their dedication to environmental stewardship. In addition, the U.S. consumers and investors are increasingly environmentally conscious and seek out sustainable and responsible businesses. As a result, companies prioritize carbon credits to align with these expectations.
 

North America Carbon Credit Market Share

Stakeholders in the North America carbon credit industry often focus on other performance indicators, such as the number of certified projects, the volume of credits issued, the impact of projects on emissions reductions, and the adoption of high-quality standards like the Verified Carbon Standard (VCS) and the Gold Standard. In addition, market participants, including project developers and brokers, may have their own estimates of their share of the market based on the projects they manage and the volume of credits they transact. Eminent players across the industry are focusing on various strategic assets comprising innovative system range, merger & acquisition, robust research & development activities as a part of their strategic initiatives. Prominent industry players operating across municipal sludge dewatering equipment market include:

• 3Degrees
• VERRA
• TerraPass
• Anew Climate, LLC
• The Nature Conservancy
• Carbon Credit Capital, LLC.
• Silicon Valley Clean Energy
• EcoAct
• ClimeCo LLC.
• PwC
• Ecosecurities
• Sterling Planet Inc.
• WGL Holdings, Inc.
• Green Mountain Energy Company
• Carbonzero
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North America Carbon Credit Market News

• In October 2023, 3Degrees came into a strategic partnership with Solidia Technologies to Issue High-Integrity Carbon Credits. Carbon credit investments will allow Solidia to accelerate the development and implementation of its low-carbon cement and concrete technologies. In addition, the resulting credits, which include carbon removal, will be purchased by organizations to reduce their scope 3 emissions from cement and concrete or to compensate for other greenhouse gas emissions.
   
• In September 2022, the U.S. government through the U.S. Department of Agriculture is investing up to USD 2.8 billion in 70 selected projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity. The same will further enhance the business prospects for the carbon offset market in the U.S.
   

This North America Carbon Credit market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘USD Million’ from 2019 to 2032, for the following segments:

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By Type

• Voluntary
• Compliance

By End Use

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

The above information has been provided for the following country.

• U.S.
• Canada
• Mexico