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| Global Carbon Credit Market Demand |
The global Carbon Credit Market is estimated to be valued at US$ 31.54 Bn in 2023 and is expected to
exhibit a CAGR of 24.% over the forecast period 2023 to 2030, as highlighted in
a new report published by Coherent Market Insights.
Market Overview:
The global carbon credit market deals with trading of pollution permits or
credits between participants in the market. Carbon credits are permits that
allow the holder to emit one tonne of carbon dioxide or other greenhouse gases.
Carbon offsets, when purchased, reduce the amount of direct carbon emissions
and compensate for emissions made elsewhere. They allow buyers to emit a
certain amount of greenhouse gases into the atmosphere.
Market key trends:
Demand for carbon offsets from the cloud computing segment is steadily rising
in the market. With an increasing number of organizations switching to
cloud-based services, the need to offset carbon emissions from data centers is
growing. Cloud service providers are investing in carbon removal projects and
purchasing more carbon credits to achieve carbon neutrality goals. For example,
companies such as Microsoft, Amazon, and Google have committed to removing more
carbon than they emit by 2030 by investing in forestation and other carbon
sequestration projects. This rising demand from the cloud computing industry is
expected to be a major driver for the carbon credit market over the coming
years.
Segment Analysis
The global carbon credit market is segmented by type, source, and regional
analysis. The compliance segment dominated the market in 2022, accounting for
over 60% of the total share, owing to strict government regulations to limit
carbon emissions. However, the voluntary segment is expected to register the
highest CAGR during the forecast period. This growth can be attributed to
increasing focus on corporate social responsibility and reputation among
organizations to reduce their carbon footprint voluntarily.
Key Takeaways
Global
Carbon Credit Market Demand is expected to witness high growth,
exhibiting a CAGR of 24% over the
forecast period, due to increasing concerns regarding climate change and
stringent environmental policies worldwide.
By region, Europe dominated the global carbon credit market in 2022 and is
expected tomaintain its leading position during the forecast period as well.
This can be attributed to the presence of major carbon credit traders and
brokers in the region. However, Asia Pacific is projected to witness the
fastest growth over the next few years due to rapid industrialization and
urbanization in major economies like China and India.
Key players operating in the global carbon credit market are WGL Holdings,
Inc., Enking International, Green Mountain Energy, Native Energy, Cool Effect,
Inc., Clear Sky Climate Solutions, Sustainable Travel International, 3 Degrees,
terrapass, and Sterling Planet, Inc. WGL Holdings, Inc. is one of the largest
distributors of natural gas in the U.S. and is actively involved in carbon
reduction projects.
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