North America Carbon Credit Market Size – By Type, By End use and Forecast, 2025

North America Carbon Credit Market Size

The North America carbon credit market was valued at USD 20 billion in 2024 and is estimated to grow at a CAGR of 15.8% from 2025 to 2034. The market is witnessing dynamic growth fueled by the increasing integration of sustainability objectives into corporate strategies and the growing recognition of carbon credits as a vital tool for achieving net-zero emissions. Businesses across various industries are leveraging both compliance and voluntary carbon markets to offset emissions, demonstrating a proactive approach to climate accountability.
 

The rising demand for high-quality and verified carbon credits is driving innovation in project development with a notable focus on renewable energy, reforestation, and advanced carbon capture and storage technologies. The integration of digital tools, such as blockchain and AI is enhancing transparency, streamlining trading processes, and ensuring robust traceability in credit transactions. Companies are increasingly adopting internal carbon pricing mechanisms to embed the cost of emissions into financial decision-making, incentivizing operational efficiencies and fostering a culture of sustainability.
 

North America Carbon Credit Market Trends

Growing emphasis on co-benefits as market participants prioritize credits associated with projects that deliver environmental and social value beyond carbon sequestration, such as biodiversity preservation and community empowerment is favoring the market growth. The market is also characterized by the proliferation of innovative financial instruments, including green bonds tied to carbon offset projects which are attracting significant investments from institutional and individual investors alike. The increasing involvement of financial institutions is further positioning carbon credits as an emerging asset class with strong potential for portfolio diversification and returns.
 

Technological advancements in monitoring and verification systems including satellite imagery and IoT-enabled devices are enhancing the accuracy and accountability of carbon offset projects. This is driving market confidence and enabling businesses to align their carbon credit usage with science-based sustainability targets. Moreover, the growing demand for innovative carbon credit solutions is encouraging the exploration of new project areas, such as blue carbon initiatives targeting marine ecosystems and methane capture projects in agriculture and waste management, thereby contributing to the regional market growth.
 

North America Carbon Credit Market Analysis

The voluntary North America carbon credit industry will surpass over USD 3 billion by 2034. The regional voluntary carbon credit market is experiencing rapid growth as businesses increasingly prioritize sustainability and adopt ambitious net-zero goals. Companies are leveraging carbon credits to offset residual emissions, focusing on projects with verified environmental and social benefits. Additionally, high demand for nature-based solutions such as reforestation and soil carbon sequestration are driving market activity across the region.
 

The forestry & land use segment will grow at a CAGR of over 15.5% through 2034. Afforestation and reforestation projects play a pivotal role in the carbon credit market, effectively capturing carbon while enhancing biodiversity and restoring ecosystems. As key "natural climate solutions," they integrate carbon sequestration with sustainable land management, delivering added benefits like biodiversity preservation and community support will contribute to the overall regional market growth over the forecast timeline.
 

The U.S. carbon credit market is projected to exceed USD 30 billion by 2034, driven by growing corporate sustainability initiatives and the rising adoption of voluntary offset mechanisms. Businesses are utilizing carbon credits to meet net-zero targets fueling demand for high-quality credits certified by rigorous standards. The integration of technologies such as blockchain and AI is improving transparency and streamlining trading processes. Additionally, rising strong emphasis on co-benefits, such as biodiversity conservation and community development, is further increasingly influencing investment decisions, thereby contributing to the market growth.
 

The Canada carbon credit market is gaining momentum driven by increasing corporate commitments to sustainability and rising demand for voluntary offsets. Businesses are actively investing in high-quality carbon credits, prioritizing projects with verified environmental and social benefits. Nature-based solutions, such as reforestation and wetland restoration, are particularly popular, alongside innovative approaches like carbon capture and utilization technologies. Companies are integrating carbon credits into broader net-zero strategies, focusing on projects that align with science-based targets.
 

North America Carbon Credit Market Share

In the North America carbon credit industry, companies are leveraging synergies between operational efficiency enhancements and carbon credit utilization to develop cost-effective decarbonization strategies. As transparency remains a top priority for stakeholders, the adoption of digital reporting tools and platforms is streamlining the monitoring of carbon credit usage and ensuring alignment with overarching sustainability goals.
 

North America Carbon Credit Market Companies

Major players operating in the North America carbon credit industry are:

• 3Degrees
• Carbon Collective
• Carbon Clean
• Climeworks
• CarbonCure Technologies
• Conservation International
• Enel X
• Green Mountain Energy
• WGL Holdings
• Sterling Planet
• South Pole
• Terrapass
• The Nature Conservancy
• Xpansiv
   

North America Carbon Credit Industry News

• In October 2024, Climeworks and Morgan Stanley entered into an agreement to permanently remove 40,000 tons of CO? from the atmosphere. This partnership, which will run until 2037, marks the company’s second-largest contract to date and will accelerate the scaling of its technology in the U.S. Climeworks serves as the anchor technology provider for the Direct Air Capture Hub Project Cypress, which is supported by the U.S. Department of Energy.
   
•  In June 2024, the Canadian Parliament passed Bill C-59, which introduced an investment tax credit (ITC) aimed at supporting the clean economy, including carbon capture, utilization, and storage (CCUS) projects. The ITC will apply to eligible projects that capture carbon emissions that would otherwise be released into the atmosphere, as well as direct air capture, carbon transportation, and storage initiatives. This development is expected to drive market growth in the upcoming period.
   

This North America 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 countries:

• U.S.
• Canada
• Mexico