Carbon Credit Market, By Sector (Energy, Transportation, Residential and Commercial Buildings, Industry, Agriculture, Forestry, and Water and Wastewater), and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Size,

Carbon Credit Market, By Sector (Energy, Transportation, Residential and Commercial Buildings, Industry, Agriculture, Forestry, and Water and Wastewater), and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2028

Carbon credits provide business with a verified method to balance unavoidable carbon footprint by directly supporting projects that are proven to reduce carbon emissions. One Carbon Offset/Credit represents the reduction of greenhouse gases equal to one metric ton of carbon dioxide equivalent (CO2e). The United Nations' Intergovernmental Panel on Climate Change (IPCC) developed a carbon credit proposal to reduce worldwide carbon emissions in a 1997 agreement known as the Kyoto Protocol. The Kyoto Protocol was signed in Kyoto, Japan, in 1997 by 192 industrialized countries. Countries that ratify the Kyoto Protocol are assigned a maximum limit of CO2 emission levels. Emitting more than the assigned limit will result in a penalty for the violating country in the form of lower emissions limit for the following period. However, if a country wants to emit more greenhouse gases than its allowed limit (without penalty), then it may participate in carbon trading using an Emissions Reduction Purchase Agreement (ERPA).
The global carbon credit market is divided into two types, suppliers market and buyers’ market. The emerging economies such as China, India, and others (with relaxed rules for carbon emission as per Paris agreement in 2015) are considered as global suppliers for carbon credit market. India is becoming one of the emerging players for global carbon credit market, however, lack of awareness about carbon credit market among the Indian companies is expected to hamper the Indian carbon credit market growth. As India's GHG emission is below the carbon cap limit, Indian companies are entitled to sell surplus credits to developed countries.
Market Dynamics
The global carbon credit market is expected to grow significantly during the forecast period, owing to the increasing investment in the carbon credit market. At present, the carbon credit market is only limited to companies that are dealing with carbon emissions and its regulations. However, the rapidly growing global carbon credit market is expected to attract funding from various financial institutions such as venture capitals, banks, and others. On the other hand, international non-profit organizations are also investing in the carbon credit market in order to fund and promote scalable climate and environmental actions. For instance, in 2021, The World Bank, an international financial institution, initiated the Climate Change Fund Management Unit, which is responsible for developing new financial instruments for climate-resilient development, and low-carbon and scale-up climate action with the help of private-sector capital. The World Bank is investing around US$ 5 billion in capital for this initiative.
Among sector, forestry segment is expected to exhibit the highest growth during the forecast period. Forests play a vital role in combating climate change. Tropical forests cover about 15 percent of the world’s land surface and contain about 25 percent of the carbon on the planet’s surface. The loss and degradation of forests accounts for 15 - 20 percent of global carbon emissions. The majority of these emissions are the result of deforestation in the tropics, largely due to conversion of the forest to more lucrative economic activities such as agriculture and mining. The market for forest carbon credits has been significantly growing over the past ten years. Currently, there are three different project types that are eligible to produce carbon offsets; afforestation or reforestation, avoided conversion, and improved forest management (IFM). Improved forest management projects are the most common compliance offsets traded in California’s cap and trade program.
Key features of the study:
This report provides in-depth analysis of global carbon credit market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2022-2028), considering 2021 as the base year
It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by the leading market players
It profiles leading players in the global carbon credit market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, market capital, key developments, strategies, and future plans
Companies covered as a part of this study include WGL Holdings, Inc., Enking International, Green Mountain Energy, Native Energy, Cool Effect, Inc., ClearSky Climate Solutions, Sustainable Travel International, 3 Degrees, terrapass, and Sterling Planet, Inc.
Insights from this report would allow marketers and management authorities of companies to make informed decisions regarding future product launches, product upgrades, market expansion, and marketing tactics
The global carbon credit market report caters to various stakeholders in this industry including investors, suppliers, managed service providers, third-party service providers, distributors, new entrants, and value-added resellers
Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global carbon credit market
Detailed Segmentation
Global Carbon Credit Market, By Sector:
Energy
Transportation
Residential and Commercial Buildings
Industry
Agriculture
Forestry
Water and Wastewater
Global Carbon Credit Market, By Region:
North America
By Sector:
Energy
Transportation
Residential and Commercial Buildings
Industry
Agriculture
Forestry
Water and Wastewater
By Country:
U.S.
Canada
Asia Pacific
By Sector:
Energy
Transportation
Residential and Commercial Buildings
Industry
Agriculture
Forestry
Water and Wastewater
By Country:
China
India
Japan
Australia
South Korea
ASEAN
Rest of Asia Pacific
Europe
By Sector:
Energy
Transportation
Residential and Commercial Buildings
Industry
Agriculture
Forestry
Water and Wastewater
By Country:
Germany
Italy
U.K.
France
Russia
Rest of Europe
Latin America
By Sector:
Energy
Transportation
Residential and Commercial Buildings
Industry
Agriculture
Forestry
Water and Wastewater
By Country:
Brazil
Mexico
Argentina
Rest of Latin America
Middle East and Africa
By Sector:
Energy
Transportation
Residential and Commercial Buildings
Industry
Agriculture
Forestry
Water and Wastewater
By Country/Region:
GCC Countries
South Africa
Rest of Middle East and Africa
Company Profiles
WGL Holdings, Inc.*
Company Overview
Product Portfolio
Financial Performance
Key Strategies
Recent Developments/ Updates
Enking International
Green Mountain Energy
Native Energy
Cool Effect Inc.
ClearSky Climate Solutions
Sustainable Travel International
3 Degrees
terrapass
Sterling Planet, Inc.
“*” marked represents similar segmentation in other categories in the respective section.