North America Carbon Credit Market Size - By Type (Voluntary, Compliance), By End Use (Agriculture, Carbon Capture & Storage, Chemical Process, Energy Efficiency, Industrial, Forestry & Land use, Renewable Energy, Waste Management) & Forecast, 2023 - 2032

North America Carbon Credit Market Size - By Type (Voluntary, Compliance), By End Use (Agriculture, Carbon Capture & Storage, Chemical Process, Energy Efficiency, Industrial, Forestry & Land use, Renewable Energy, Waste Management) & Forecast, 2023 - 2032

North America carbon credit market size is projected to expand at over 14.8% CAGR from 2023 to 2032, due to the increasing emphasis on sustainable practices and corporate environmental responsibility across the globe. The surging government support, such as the Biden administration's commitment to combating climate change is making way for the rise in offset projects, including reforestation and renewable energy initiatives.

Additionally, the commitments set by numerous corporations for net-zero goals and seeking carbon neutrality will further boost the product demand. For instance, in October 2023, Verra unveiled a new Afforestation, Reforestation, and Revegetation (ARR) methodology as part of its Verified Carbon Standard (VCS) Program. The increasing efforts by investors towards offsetting their carbon footprint and the growing awareness of consumers about the environmental impacts of businesses will further augment the regional market outlook.

The North America carbon credit market is segregated based on type, end-use, and region.

Based on type, the industry share from the voluntary segment is projected to depict appreciable CAGR from 2023 to 2032. The growth can be attributed to the higher corporate support to sustainability, rising awareness among consumers, and the surging desire for businesses to proactively address their environmental impact. The burgeoning demand for voluntary carbon credits with multiple companies seeking to achieve carbon neutrality and support eco-friendly initiatives will also add to the segment expansion.

The agriculture end-use segment of the North America carbon credit industry is estimated to accumulate sizeable share through 2032, driven by the increasing adoption of sustainable farming practices and influx of soil carbon sequestration initiatives. The soaring emphasis on the utilization of carbon offsetting agriculture methods will also boost the segment growth.

Regionally, the Mexico carbon credit industry is slated to expand at substantial CAGR during 2023-2032, driven by the increased awareness of environmental sustainability. The growing governmental initiatives for promoting carbon reduction is adding to the participation of businesses in carbon offset projects. Moreover, the rising interest in mitigating climate change impacts and achieving carbon neutrality will supplement the regional market growth.