Carbon Credit Market Size To Reach $4,734.35 Billion By 2030

Carbon Credit Market Growth & Trends

The global carbon credit market size is expected to reach USD 4,734.35 billion by 2030, registering a CAGR of 39.4% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a lucrative CAGR of 38.7% during the forecast period. The demand for carbon credits has been rising substantially in recent years due to various factors, such as several governments introducing policies and regulations that are aimed at reducing greenhouse gas emissions.

The significant demand for carbon credits has been helped by companies increasingly recognizing the importance of sustainability and of reducing their carbon footprint as part of their corporate social responsibility initiatives. This has led to carbon credits becoming a vital aspect for organizations to offset their emissions. In addition, growing concerns about climate change and its potential impacts have also created strong traction in the carbon credits space.

Governments around the world are implementing policies and regulations to reduce greenhouse gas emissions and combat climate change. Many of these regulations require companies to offset their emissions by purchasing carbon credits. These factors are expected to drive the compliance carbon credit market globally.

Compliance was the dominant segment in the global market for carbon credits in 2022 with a revenue share of 98.91%. The compliance carbon credit market is where companies and organizations that are regulated by a government or a specific authority are required to offset their carbon emissions by purchasing carbon credits. These credits represent a reduction in greenhouse gas emissions from an approved project, such as renewable energy or energy efficiency initiatives.

The COVID-19 pandemic has been a major restraint to the advancement of the carbon credit market, owing to several factors including reducing operational costs by end-users, along with extensive disruption in the availability of spare parts across the globe due to sluggish manufacturing activities and logistics issues.

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Carbon Credit Market Report Highlights

• In 2023, compliance emerged as the largest type segment and accounted for 98.80% of the revenue share. Several advantages due to regulated policies generated by governments are supporting the market growth

• In 2023, the avoidance/reduction projects segment accounted for the largest share of 66.45% in the global market for carbon credits. The growing number of renewable energy projects requiring carbon offset is expected to augment market growth over the forecast period

• The U.S. emerged as the largest carbon credit market in North America in 2023. The carbon credit market is primarily driven by a combination of state-level programs and voluntary markets in the country

• In Europe, the UK emerged as the largest country in terms of revenue generation for the carbon credit market, with a share of 38.39% in 2023. Supportive government policies and frameworks toward the positive scaling of emission trading schemes are fostering regional growth

• In 2023, the power segment in the end-use category dominated the global market for carbon credits with a share of 31.09%. Increasing investments in the power sector, along with the capture of carbon to enhance the trading platform, will further support segment growth over the forecast period

Carbon Credit Market Segmentation

Grand View Research has segmented the global carbon credit market based on type, project type, end-use, and region:

Carbon Credit Type Outlook (Revenue, USD Million, 2018 - 2030)

• Compliance

• Voluntary

Carbon Credit Project Type Outlook (Revenue, USD Million, 2018 - 2030)

• Avoidance/Reduction Projects

• Removal/Sequestration Projects

  • Nature-based

  • Technology-based

Carbon Credit End-use Outlook (Revenue, USD Million, 2018 - 2030)

• Power

• Energy

• Aviation

• Transportation

• Buildings

• Industrial

• Others

Carbon Credit Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • Italy

  • France

  • Spain

  • The Netherlands

  • Sweden

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

• Central & South America

  • Brazil

• Middle East & Africa

  • UAE

  • Saudi Arabia

List Of Key Players Carbon Credit Market

• 3Degrees Group, Inc.

• Carbon Care Asia Ltd.

• CarbonBetter

• ClearSky Climate Solutions

• EKI Energy Services Ltd.

• Finite Carbon

• NativeEnergy

• South Pole Group

• Torrent Power Ltd.

• WGL Holdings Inc.