Compliance Carbon Credit Market Size - By End Use (Agriculture, Carbon Capture & Storage, Chemical Process, Energy Efficiency, Industrial & Commercial, Forestry & Landuse, Renewable Energy, Transportation, Waste Management), & Forecast, 2023 - 2032

Compliance Carbon Credit Market Size - By End Use (Agriculture, Carbon Capture & Storage, Chemical Process, Energy Efficiency, Industrial & Commercial, Forestry & Landuse, Renewable Energy, Transportation, Waste Management), & Forecast, 2023 - 2032

Compliance Carbon Credit Market size is poised to depict over 13.7% CAGR from 2023-2032, due to the rising commitment of multiple corporations to achieve net-zero emissions. As per the UN, over 9,000 companies, beyond 1000 cities and educational institutions as well as more than 600 financial institutions have joined the Race to Zero initiative to take immediate rigorous action to halve the global emissions by 2030. To that end, there has been stronger focus on purchasing credits to offset the residual emissions post implementing the internal emissions reduction measures. The growing efforts taken for integrating or linking different carbon markets across the globe will also influence the industry expansion.

The overall compliance carbon credit industry is segmented into end use and region.

In terms of end use, the market size from the agriculture segment is anticipated to foresee substantial expansion between 2023 and 2032 driven by the surging emphasis on limiting various greenhouse gas emissions. Compliance carbon credits offer financial incentives to farmers to help them adopt practices, such as improved livestock management and optimized fertilizer use whilst implementing sustainable land management methods.

The growing regulatory frameworks to impose emission reduction targets on the agricultural sector is also playing a key role for the market expansion. For instance, in October 2023, the U.S Department of Agriculture (USDA) rolled out A General Assessment of the Role of Agriculture and Forestry in the U.S. carbon market to provide a comprehensive look at the opportunities for improving access to carbon markets for farmers.

Based on region, the North America compliance carbon credit market is projected to strike an appreciable CAGR through 2032 due to the presence of favorable regulatory landscape along with the rising number of regional and national initiatives. For instance, in November 2022, the U.S. government unveiled a new voluntary carbon trading market scheme for boosting private investments in clean energy projects across developing countries.

The increasing awareness and emphasis on sustainability is also making way for the growing demand for carbon credits among multiple companies looking at offsetting their carbon emissions. Moreover, the ambitious sustainability goals set by numerous regional corporations will influence the regional market growth.