NEW
YORK, May 15, 2024 /PRNewswire/ -- The
global carbon credit market size is
estimated to grow by USD 1437.52 bn
from 2024-2028, according to Technavio. The market is estimated to
grow at a CAGR of 31.01% during the forecast
period.
For more insights on the forecast market size and
historic data (2018 - 2022) - Download
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
End-user (Power,
Energy, Transportation, Industrial, and Others), Type (Compliance
and Voluntary), and Geography (Europe, Asia, North America, and
Rest of World (ROW))
|
Region
Covered
|
Europe, Asia, North
America, and Rest of World (ROW)
|
Key companies
profiled
|
3Degrees Group Inc.,
AltaGas Ltd., Anew Climate LLC, Carbon Credit Capital LLC,
CarbonBetter, ClearSky Climate Solutions LLC, Climate Bridge Ltd.,
Climate Impact Partners LLC, ClimatePartner GmbH, ClimeCo LLC, EKI
Energy Services Ltd., Finite Carbon Corp., Just Energy Advanced
Solutions LLC, Microsoft Corp., NativeEnergy, natureOffice GmbH,
NRG Energy Inc., South Pole, Sterling Planet, and Tasman
Environmental Markets
|
Key Market Trends Fueling Growth
The carbon credit market is a significant financial arena for
investments, particularly among environmental advocates and
entities aiming for net-zero emissions. Tech giants like Stripe,
Alphabet, and Meta have pledged USD925
million towards carbon removal. In November 2022, 3Degrees and Merge Electric Fleet
Solutions collaborated to monetize charging systems in Clean Fuels
States, offsetting EV charging with RECs. This market involves
financial support, local communities, climate protection, carbon
emission reduction, revenues, development projects, carbon storage,
carbon credits, and economic stimuli. Key aspects include carbon
neutralization, carbon tax, carbon market, and energy factors.
Challenges include fluctuating prices, market volatility, and
ensuring the validity and quality of credits from various projects,
such as forestry initiatives.
Market Challenges
- The carbon credit market is a global platform where carbon
credits are bought and sold, influencing carbon emission reduction
efforts and climate protection initiatives. Economic incentives,
such as carbon taxes and carbon markets, are employed by nations
like Canada, China, France, and the US to achieve carbon
neutrality by 2050. Carbon credits, derived from various projects
including forest management and energy factors, provide financial
support for climate goals and development projects. Prices
fluctuate due to market challenges, including economic recessions
and the validity of credits. Participants include leading
companies, seeking to offset their carbon emissions and contribute
to conservation, biodiversity, and livelihoods. Carbon credits
facilitate carbon storage, decarbonization, and net-zero
greenhouse-gas emissions, making them a crucial tool in the fight
against climate change.
Research report provides comprehensive data on
impact of trend, driver and challenges - Buy
Report
Segment Overview
This carbon credit market report extensively covers market
segmentation by
- End-user
- 1.1 Power
- 1.2 Energy
- 1.3 Transportation
- 1.4 Industrial
- 1.5 Others
- Type
- 2.1 Compliance
- 2.2 Voluntary
- Geography
- 3.1 Europe
- 3.2 Asia
- 3.3 North America
- 3.4 Rest of World (ROW)
1.1 Power- The carbon credit market segmented by
end-user plays a pivotal role in financing carbon emission
reduction projects and providing financial support for climate
protection initiatives. These projects, often located in local
communities, contribute to carbon storage and biodiversity
conservation. Revenues generated from carbon credits enable the
development of bankable carbon initiatives, fostering economic
stimuli and decarbonization efforts. Carbon neutralization
projects, such as forest management and renewable energy, offer
climate goals that align with the global push towards net-zero
greenhouse-gas emissions. However, the carbon market faces
challenges, including fluctuating prices, market volatility, and
leakage of offsets. Carbon tax and economic recession can also
impact the market's validity and participants' commitment. Energy
factors, such as the shift from fossil fuels to renewable sources,
further influence the carbon credit market. Forestry projects, a
significant component of the market, require careful management and
validation to ensure their carbon credits' quality and validity.
The location of emissions and the harvesting process are crucial
factors in determining the carbon credits' effectiveness in
mitigating atmospheric CO2 concentrations.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
The Carbon Credit Market is a vital component of the voluntary
carbon market, where entities purchase Carbon Credits to offset
their Carbon Emissions. These credits are derived from projects
that reduce, avoid, or remove Greenhouse Gas Emissions. Forestry
projects, such as reforestation and afforestation, are common
sources of Carbon Credits. However, it is essential to consider
leakage of offsets, which refers to the potential for emissions to
increase in other areas due to offsetting activities.
Decarbonization efforts aim for Net-Zero Greenhouse-Gas Emissions,
making the Carbon Credit Market an essential tool for organizations
and individuals seeking to achieve this goal. Carbon Storage is
another crucial aspect, as Carbon Credits represent the long-term
storage of Carbon Dioxide. The Carbon Credit Market plays a
significant role in the global transition towards a low-carbon
economy.
Market Research Overview
The Carbon Credit Market refers to a system that allows
organizations and individuals to buy and sell the right to emit
greenhouse gases. This market is a crucial component of carbon
offsetting, a strategy used to reduce an entity's carbon footprint
by purchasing carbon credits instead of reducing emissions
directly. The market operates based on the principle of the
Cap-and-Trade system, where a limit is set on the total amount of
carbon emissions, and allowances are allocated and traded.
Companies or countries that emit less than their allocated limit
can sell their excess allowances to those who exceed their limit.
The market facilitates the transition towards a low-carbon economy
by providing economic incentives for reducing emissions. Key
components include offset projects, carbon credits, and regulatory
frameworks.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
-
- Power
- Energy
- Transportation
- Industrial
- Others
- Type
-
- Geography
-
- Europe
- Asia
- North America
- Rest Of World (ROW)
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio