Carbon Offsets Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Carbon Offsets Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of Carbon Offsets Market

The carbon offsets market size was valued at USD 938.75 billion in 2023, and the market is now projected to grow from USD 1067.74 billion in 2024 to USD 2549.42 billion by 2032, exhibiting a CAGR of 13.1% during the forecast period of 2024-2032.

The pandemic appreciably impacted the carbon offsets marketplace because of regulations on emissions and fuel purification. Governments imposed lockdowns on people, transportation, and enterprise activities, reducing greenhouse fuel emissions and reducing investment in carbon neutralizing projects. Additionally, fluctuating carbon credit expenses on stock alternate platforms created uncertainty for investors and key companies seeking carbon credit in alternate for C02e. These factors impacted the quantity of carbon offset initiatives globally.

Carbon emissions from center industries like cement, coal, crude oil, natural gas, and steel have surpassed green fuel limits, causing ozone depletion and health troubles in adults and newborns. Chlorine can wreck over 100,000 ozone molecules, weakening the ozone layer and exposing individuals to UV rays, increasing the hazard of premature growing old, pores and skin damage, pores and skin most cancers, and blinding of the eyes. The Paris Agreement and Kyoto Protocol set limits on carbon dioxide emissions to ensure carbon neutrality, and organizations gain from carbon credits. The voluntary market for carbon credits is expected to fall among USD 12.9 - 25.8/t CO2e among 2026 and 2030, driving carbon offsets market growth.

The upward thrust in international warming because of greenhouse fuel emissions gives a hazard for voluntary carbon neutralization initiatives. Small GHG emitters take part in carbon offsets applications to reap net zero emissions. They get hold of carbon credit for neutralizing every ton of carbon, which may be used for carbon trading on inventory change systems, ensuing in excessive income for the enterprise. This monetary benefit has created new possibilities for volunteers to maximize their revenue.

Comprehensive Analysis of Carbon Offsets Market

The carbon offset market is divided into compliance and voluntary markets. Compliance markets, which accounted for the largest market share in 2022, are driven by the rise in global carbon gas emissions due to the Paris Agreement 2015. Governments have issued carbon credits to end-use industries to neutralize these emissions, leading to increased investment in carbon offset projects. The voluntary market, on the other hand, has seen growth due to increased awareness of carbon neutralization among end-use industries. The market is further segmented into avoidance/reduction and removal/sequestration projects, with avoidance projects gaining popularity in Europe, Asia Pacific, and North America. The market is further divided into renewable energy, forestry and land, industrial, household appliances, and transportation. Government initiatives to reduce carbon footprint and hazardous gas emissions have also spurred increased investment in these end-use applications, as these industries receive credit for each ton of carbon neutralization.

The Europe region lead the carbon offsets market share by benefitting a market size of USD 750.53 billion in 2023 due to vicinity's strong presence in the carbon credit score buying and selling quarter is anticipated to power key stop-use industries to increase sales and obtain internet zero carbon emissions by using 2050, similarly boosting the marketplace in Europe.

The market is ruled by principal players like Carbon Credit Capital, NativeEnergy, Green Mountain Energy Company, EcoAct, and GreenTrees, who are growing their investments in sustainability activities. These companies are also concerned in new venture launches, joint ventures, acquisitions, and partnerships to gain an aggressive edge. Other key players have hooked up sturdy regional presence, strong distribution channels, and sundry product offerings. Other key players include Allcot Group, 3Degr_ees, WayCarbon, South Pole, and TerraPass.

The Global Carbon Council, based in Doha, plans to list its carbon credits on the MENA exchanges platform in August 2023, aiming to boost carbon offset investors and active carbon emission projects in the Middle East region.

Segmentation Table

ATTRIBUTE DETAILS

Study Period 2017-2030

Base Year 2022

Estimated Year 2023

Forecast Period 2023-2030

Historical Period 2017-2021

Growth Rate CAGR of 13.1% from 2023 to 2030

Unit Value (USD Billion)

Segmentation

By Type

Compliance Market

Voluntary Market

By Project Type

Avoidance/Reduction Projects

Removal/Sequestration Projects

By End-user

Renewable Energy

Forestry and Land

Industrial

Household and Appliances

Transportation

Others

By Geography

North America (By Type, Project Type, End-user, and Country)

U.S. (By End-user)

Canada (By End-user)

Europe (By Type, Project Type, End-user, and Country)

European Union (By End-user)

U.K. (By End-user)

Asia Pacific (By Type, Project Type, End-user, and Country)

China (By End-user)

South Korea (By End-user)

New Zealand (By End-user)

Rest of Asia Pacific (End-user)

Rest of the World (By Type, End-user, and Country)