Carbon Offsetting Market - Forecasts from 2024 to 2029

Carbon Offsetting Market - Forecasts from 2024 to 2029

The carbon offsetting market is expected to grow at a CAGR of 11.33%, reaching a market size of US$48.954 billion in 2029 from US$28.625 billion in 2024.

One of the main methods for neutralizing carbon emissions and lowering greenhouse gas (GHG) emissions in the atmosphere is carbon offset. The reduction and measurement of industrial and commercial gases in tons is achieved through the utilization of diverse carbon capture technologies, including carbon sequestration and investment in renewable energy. Using measurement units like the tCO2e or MTCO2e, the government determines the monetary value for each ton of carbon dioxide or carbon dioxide equivalent (CO2e). The end-use industries' voluntary participation in the carbon offsets program will increase as a result of this monetary value assigned to carbon neutralization.

Moreover, the end-use industries' enforced compliance and autonomous contribution to offset greenhouse gas emissions are linked to the market's growth. Governments issue carbon credits per ton of CO2e for the various end-use industries, which can be sold at the going rate. The market for carbon credits attracted investments from traders and end-user industries, increasing the demand for carbon offsets. Thus, the market was affected by all of these war-related activities.

Carbon Offsetting Market Drivers:

Increased adoption by voluntary projects is anticipated to propel the market growth

The escalation of greenhouse gas emissions leading to global warming has presented a possible prospect for voluntary carbon neutralization initiatives. The small GHG emitters began participating in the carbon offset program to attain net zero carbon emissions. These tiny volunteers also receive carbon credits for each ton of carbon they neutralize. The company stands to gain greatly from the use of these credits as the medium of exchange for carbon trading on stock exchange platforms. Due to these financial benefits, there are now more ways than ever for new and old volunteers to increase their earnings in the carbon offset market.

Carbon Offsetting Market Geographical Outlook

Asia Pacific is witnessing exponential growth during the forecast period

Within the Asia-Pacific region, carbon dioxide emissions leading to global warming are present in most countries, China being one of them, and a few other top carbon emitters. Most importantly, China is responsible for a large emission of harmful gases to the environment every year, including carbon dioxide, carbon monoxide, and other toxic gas substances. These gases may destroy the ozone layer. Thus, more carbon capture projects have occurred over the past few years. By offering carbon credits in return for the neutralized carbon dioxide in tons, the governments of the Asia-Pacific region are pushing end-use industries to meet the net zero carbon emission targets. All of these initiatives are anticipated to accelerate the regional market expansion.

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Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The Carbon offsetting market is segmented and analyzed as follows:

By Type

Voluntary Market
Compliance Market

By Project Type

Avoidance/Reduction Projects
Removal/Sequestration Projects
Others

By End-Users

Power
Energy
Aviation
Industrial
Transportation
Others

By Geography

North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Other
Asia Pacific
China
Japan
India
South Korea
Indonesia
Thailand
Others