Worldwide Carbon Credit Market Size Worth USD 4,028.24 Billion By 2032

Carbon Credit Market Size Worth $4,028.24 Billion By 2032 | CAGR: 29.00%


The global carbon credit market size is expected to reach USD 4,028.24 billion by 2032, according to a new study by Polaris Market Research. The report “Carbon Credit Market Share, Size, Trends, Industry Analysis Report, By Type (Compliance, Voluntary), By Project Type (Avoidance/Reduction Projects, Removal/Sequestration Projects), By End-use, By Region, And Segment Forecasts, 2024-2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Companies are increasingly realizing the importance of sustainability and the need to reduce their carbon footprint. Corporate social responsibility initiatives have become a priority for many organizations, driven by the recognition that sustainable practices and emissions reductions are beneficial for the environment and their reputation and long-term viability. Purchasing carbon credits allows companies to offset their emissions by investing in projects that reduce GHG emissions, thereby demonstrating their commitment to sustainability and acting against climate change.

Moreover, public awareness and concern about climate change have been growing, driving demand for carbon credits. Individuals and organizations are becoming more conscious of their environmental impact and are seeking ways to mitigate their carbon footprint. Carbon credits provide a tangible means for individuals and businesses to take responsibility for their emissions and support projects that contribute to emissions reductions or sustainable development.

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Establishing carbon credit markets can provide several benefits. It creates economic incentives for companies to invest in emission reduction projects, promotes the development of clean technologies, and encourages sustainable practices. Furthermore, carbon credit markets can support the growth of renewable energy sectors and contribute to the overall transition to a low-carbon economy. Carbon credit growth in India will depend on the regulations and frameworks established under the Energy Conservation Bill 2022. These may include guidelines for project eligibility, certification processes, monitoring and verification mechanisms, and the overall governance of the market. It would be advisable to refer to the bill's specific provisions or follow any subsequent updates or notifications from the Indian government to obtain accurate and up-to-date information on the establishment of carbon credit markets in the country.

The requirement for companies to purchase carbon credits as part of regulatory compliance serves multiple purposes. Firstly, it helps to create a financial incentive for companies to reduce their emissions by providing a cost associated with carbon emissions. By internalizing the cost of emissions, companies are motivated to invest in cleaner technologies, energy efficiency measures, and other emission reduction initiatives.

Carbon Credit Market Report Highlights

  • Compliance segment emerged as the largest shareholder, due to regulated policies by the respective governments
  • Avoidance segment garnered largest share, owing to rise in renewable projects, and increasing necessity to offset carbon emissions
  • Power segment witnessed the highest growth rate, owing to rise in the investments in the power sectors and allied industries
  • The global players include 3Degrees, Carbon Care Asia, CarbonBetter, ClearSky Climate Solutions, EKI Energy Services, Finite Carbon, NativeEnergy, South Pole, Torrent Power, and WGL Holdings

Polaris Market Research has segmented the carbon credit market report based on type, project type, end use, and region:

Carbon Credit, Type Outlook (Revenue - USD Billion, 2019 - 2032)

  • Compliance
  • Voluntary

Carbon Credit, Project Type Outlook (Revenue-USD Billion, 2019 - 2032)

  • Avoidance / Reduction Projects
  • Removal / Sequestration Projects
    • Nature-based
    • Technology-based

Carbon Credit, End Use Outlook (Revenue-USD Billion, 2019 - 2032)

  • Power
  • Energy
  • Aviation
  • Transportation
  • Buildings
  • Industrial
  • Others

Carbon Credit, Regional Outlook (Revenue - USD Billion, 2019 - 2032)

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
    • Netherlands
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • Malaysia
  • Latin America
    • Argentina
    • Brazil
    • Mexico
  • Middle East & Africa
    • UAE
    • Saudi Arabia
    • Israel
    • South Africa

Carbon Credit Market Report Scope

Report Attributes

Details

Market size value in 2024

USD 525.62 billion

Revenue forecast in 2032

USD 4,028.24 billion

CAGR

29.00% from 2024 – 2032

Base year

2023

Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD billion and CAGR from 2024 to 2032

Segments covered

By Type, By Project Type, By End Use, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key companies

3Degrees, Carbon Care Asia, CarbonBetter, ClearSky Climate Solutions, EKI Energy Services, Finite Carbon, NativeEnergy, South Pole, Torrent Power, and WGL Holdings.

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  • Regional analysis
  • Segmentation analysis
  • Industry outlook
  • Competitive landscape
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