Renewable Energy Carbon Credit Market Size – By Type (Voluntary, Compliance), & Growth Forecast, 2024 – 2032

Renewable Energy Carbon Credit Market Size

Renewable Energy Carbon Credit Market size was estimated at USD 26.9 billion in 2023 and is projected to observe a growth rate of 15% by 2032. Stringent government regulations & policies along with favouring corporate sustainability initiatives towards carbon emission will complement the business scenario.
 

Policies like carbon pricing, emissions trading systems (ETS), and renewable energy mandates encourage businesses to adopt renewable energy sources and offset their carbon emissions through carbon credits, boosting market demand. Moreover, the increasing pressure from stakeholders and consumers for corporate environmental responsibility is leading businesses to adopt sustainable practices. Companies are investing in renewable energy projects and purchasing carbon credits to achieve carbon neutrality and enhance their brand reputation, complementing the industry growth.
 

Renewable Energy Carbon Credit Market Trends

Innovations in renewable energy technologies, such as solar, wind, and bioenergy, are reducing costs and increasing the efficiency of these energy sources. As renewable energy becomes more accessible and cost-effective, the generation of carbon credits from these sources is rising, supporting market expansion. In addition, the growing global awareness and concern over climate change are propelling the adoption of renewable energy and carbon credits. Public and private sector commitments to achieving net-zero emissions and the participation in global climate initiatives like the Paris Agreement are fuelling the growth of the market.
 

Renewable Energy Carbon Credit Market Analysis

The market is anticipated to surpass USD 90 billion by 2032. Increasing integration and harmonization of carbon credit markets across regions is driven by the need for a cohesive approach to managing carbon emissions and ensuring transparency in carbon credit transactions. Countries and regions are working towards aligning their carbon markets to facilitate cross-border trading of carbon credits, which enhances market liquidity and provides more opportunities for businesses to offset their carbon footprints. In addition, advancements in digital platforms and technologies that streamline the trading and verification processes is further anticipated to spur growth into the market.
 

Based on type, the renewable energy carbon credit market is segmented as voluntary & compliance. The compliance carbon credit market will grow at a rate of over 12.5% by 2032. Integrating renewable energy management into carbon pricing mechanisms, such as carbon taxes or cap-and-trade systems, drives the compliance carbon credit market by incentivizing companies to earn credits for reducing emissions. Moreover, the alignment promotes investment in renewable energy projects, enhancing market growth and facilitating adherence to environmental regulations, thereby proliferating the compliance carbon credit industry size.
 

The Europe renewable energy carbon credit market is anticipated to exceed over USD 60 billion by 2032. Continuous & exponential increasing impact of stringent government policies and regulations along with shifting focus toward emission curb is driving the market growth. The European Union Emissions Trading System (EU ETS) enforces strict emission caps on industries such as power generation and manufacturing. This regulatory pressure drives market expansion by compelling businesses to meet ambitious emission reduction targets. In response, governments are enhancing carbon pricing mechanisms and internalizing the costs of carbon pollution, thereby promoting investment in renewable energy.
 

The increasing focus on biodiversity and conservation goals in the U.S. is becoming a significant driver of market expansion. With the escalating threats of climate change and ecosystem degradation, there is a heightened urgency to protect biodiversity and reduce carbon emissions. This growing awareness has spurred diverse stakeholders—governments, corporations, and individuals—to pursue innovative solutions that address environmental challenges and promote sustainable development augmenting the North America carbon credit industry growth.
 

Renewable Energy Carbon Credit Company Market Share

The renewable energy carbon credit industry consists of a wide range of players including 3Degrees, ClimeCo LLC., EcoAct, Sterling Plant Inc., and CarbonClear, among others, operating as the key dominant players. The competition revolves around securing and trading credits, developing innovative carbon offset projects, and navigating complex regulations and standards set by international and national bodies. Major organizations and governments are intensifying their efforts to meet climate goals driving the industry rivalry, making strategic positioning and adherence to rigorous standards critical parameters for the companies.
 

Renewable Energy Carbon Credit Market Companies

Some of the key market players operating across the renewable energy carbon credit industry are:

• 3Degrees
• Atmosfair
• ALLCOT
• ClimeCo LLC.
• Climate Impact Partners
• CarbonClear
• Ecosecurities
• EcoAct
• Green Mountain Energy Company
• PwC
• Sterling Planet Inc.
• South Pole
• The Carbon Trust
• The Carbon Collective Company
• TerraPass
   

Renewable Energy Carbon Credit Industry News

• In June 2024, 3Degrees introduced its innovative Carbon Removal Suite, a set of products designed to enable corporations to engage with the carbon dioxide removal (CDR) market efficiently and cost-effectively. This suite, aligned with the Oxford Principles for Net Zero Aligned Carbon Offsetting and other leading industry standards, offers a strategic approach for organizations to integrate high-durability carbon removals into their carbon procurement strategies.
   
• In March 2024, Ecosecurities and Chemsain have formed a strategic partnership to accelerate decarbonization efforts in Malaysia. This collaboration aims to develop innovative solutions that drive the country's decarbonization across various sectors, including energy, waste, nature-based, technology-based, and community-based projects, which in turn is anticipated to add to the overall carbon credit market growth.
   

Renewable energy carbon credit market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in ‘USD Billion’ from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Type, 2021 – 2032, (USD Billion)

• Voluntary
• Compliance

The above information has been provided for the following region:

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