Carbon Offsetcarbon Credit Market
PUBLISHED: 2024 ID: SMRC25089
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Carbon Offsetcarbon Credit Market

Carbon Offset/Carbon Credit Market Forecasts to 2030 - Global Analysis By Type (Voluntary Market and Compliance Market), Project Type, End User and By Geography

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5.0 (68 reviews)
Published: 2024 ID: SMRC25089

This report covers the impact of COVID-19 on this global market
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According to Stratistics MRC, the Global Carbon Offset/Carbon Credit Market is accounted for $414.8 billion in 2023 and is expected to reach $3053.5 billion by 2030 growing at a CAGR of 33.0% during the forecast period. A carbon offset is a reduction in greenhouse gas (GHG) emissions, or the removal of GHGs from the atmosphere, to compensate for emissions produced elsewhere. A carbon credit is a permit or certificate that represents the right to emit a specific amount of greenhouse gases. Each credit typically corresponds to one ton of CO2e. These offsets are typically generated through projects that reduce or capture emissions, such as renewable energy projects, afforestation, or methane capture.

According to the World Bank, carbon prices have risen sharply in the past year, and this is mostly due to the increased demand as decarbonization efforts accelerate. The rapid increase in the value of offsets reflects both the rising prices and the rising demand from corporate buyers leading to higher transacted offset volumes.

Market Dynamics: 

Driver: 

Increasing sustainability goals and commit to reducing their carbon footprint

Companies, striving to meet ambitious environmental targets, actively participate in carbon markets to offset unavoidable emissions. This heightened demand stimulates investment in diverse projects, ranging from renewable energy initiatives to conservation efforts. As a result, the carbon offset/credit market expands, offering a crucial mechanism for achieving corporate sustainability objectives and fostering a transition to a low-carbon economy.

Restraint:

Volatile carbon credit prices

Rapid fluctuations can disrupt businesses' ability to plan and budget for emission reduction strategies, discouraging long-term investments, may also create hesitancy among potential investors and project developers, impacting the market's overall stability. Additionally, unpredictable pricing may affect the credibility of carbon credits as a reliable tool for achieving emissions reduction targets hamper the market growth.

Opportunity:

Stringent climate policies and regulations

Governments globally imposing emission reduction targets create a robust demand for carbon credits as businesses seek compliance. This regulatory environment incentivizes companies to invest in emission reduction projects and purchase credits to offset unavoidable emissions. The market responds by expanding its scope, fostering innovation in sustainable practices, and driving the transition to a low-carbon economy. Overall, stringent climate policies serve as a catalyst for the growth and effectiveness of the carbon offset/credit market

Threat:

Limited public awareness and understanding of the carbon offset 

The lack of awareness hampers voluntary participation from individuals and businesses in offsetting their carbon footprints. This insufficient understanding may result in lower demand for carbon credits, limiting their market impact. To address this, educational initiatives and outreach campaigns are crucial to enhance public awareness, clarify the benefits of carbon offset projects, and encourage broader adoption.

Covid-19 Impact

The pandemic has disrupted supply chains across various industries, including those related to renewable energy projects and carbon offset initiatives. Moreover, the pandemic may have shifted government priorities away from environmental issues temporarily, impacting policy and regulatory frameworks for carbon markets. However, some governments might have used the opportunity to integrate sustainability measures into their recovery plans encourage in the market growth.

The removal/sequestration projects segment is expected to be the largest during the forecast period

The removal/sequestration projects segment is estimated to have a lucrative growth, due to consumer awareness and demand for eco-friendly options could drive market competition, encouraging innovation in materials and manufacturing processes. Overall, aligning camping cooler products with carbon removal initiatives aligns with global environmental goals, fostering a positive brand image and meeting the increasing consumer preference for eco-conscious products.

The energy & power segment is expected to have the highest CAGR during the forecast period

The energy & power segment is anticipated to witness the highest CAGR growth during the forecast period, as cooler innovations often leverage energy-efficient technologies for cooling mechanisms, impacting performance and portability. Efficient energy usage enhances cooler effectiveness, especially in off-grid camping scenarios. Additionally, the power source also affects product costs, prompting manufacturers to balance performance and energy efficiency to cater to a diverse market seeking reliable, convenient, and environmentally conscious camping cooling solutions.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the demand for carbon offsets and credits can be influenced by the growth of renewable energy projects in the region. Investments in solar, wind, and other clean energy sources may contribute to both reduced emissions and the generation of carbon credits. Additionally, the engagement of industries and businesses in carbon reduction initiatives is a significant driver. Companies may voluntarily participate in carbon offset projects or trading schemes to demonstrate environmental responsibility and meet sustainability goals.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to growing interest in carbon offsetting and carbon credits in North America, driven by increasing awareness of climate change and sustainability. Companies and individuals have been exploring ways to reduce their carbon footprint and participate in carbon markets which are driving the growth of the market.

Key players in the market

Some of the key players in the Carbon Offset/Carbon Credit Market include 3Degrees,  Finite Carbon, EKI Energy Services Ltd., WGL Holdings, Inc., NativeEnergy, South Pole Group, Carbon Care Asia Limited, Natureoffice GmbH, Carbon Credit Capital Enking International, Cool Effect, Inc., TEM (Tasman Environmental Markets), Climate Impact Partners, Carbonfund, Green Mountain Energy, ForestCarbon, Bluesource LLC, Moss.Earth and Terrapass   

Key Developments:

In October 2023, Solidia technologies to partner with 3degrees to issue high-integrity carbon credits, the resulting credits, which include carbon removal, will be purchased by organizations to reduce their scope 3 emissions from cement and concrete or to compensate for other greenhouse gas emissions.

In April 2023, LandYield and Finite Carbon Join Forces to Expand Landowner Access to Voluntary Carbon Market. Participating landowners also help maintain recreational values, protect water resources, and improve habitat quality on enrolled lands.

In March 2023, Sweep and 3Degrees Partner to Launch Groundbreaking Carbon Measurement and Reduction Solution. The two certified B Corporations will team up to provide a seamless experience for organizations looking to measure and take action on their operational and value chain emissions.

Types Covered:
• Voluntary Market
• Compliance Market
 
Project Types Covered:
• Removal/Sequestration Projects
• Avoidance/Reduction Projects

End Users Covered:
• Energy & Power
• Aviation
• Industrial
• Buildings
• Transportation
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary          
            
2 Preface           
 2.1 Abstract          
 2.2 Stake Holders         
 2.3 Research Scope         
 2.4 Research Methodology        
  2.4.1 Data Mining        
  2.4.2 Data Analysis        
  2.4.3 Data Validation        
  2.4.4 Research Approach        
 2.5 Research Sources         
  2.5.1 Primary Research Sources       
  2.5.2 Secondary Research Sources       
  2.5.3 Assumptions        
            
3 Market Trend Analysis         
 3.1 Introduction         
 3.2 Drivers          
 3.3 Restraints         
 3.4 Opportunities         
 3.5 Threats          
 3.6 End User Analysis         
 3.7 Emerging Markets         
 3.8 Impact of Covid-19         
            
4 Porters Five Force Analysis         
 4.1 Bargaining power of suppliers        
 4.2 Bargaining power of buyers        
 4.3 Threat of substitutes        
 4.4 Threat of new entrants        
 4.5 Competitive rivalry         
            
5 Global Carbon Offset/Carbon Credit Market, By Type      
 5.1 Introduction         
 5.2 Voluntary Market         
 5.3 Compliance Market         
            
6 Global Carbon Offset/Carbon Credit Market, By Project Type      
 6.1 Introduction         
 6.2 Removal/Sequestration Projects       
 6.3 Avoidance/Reduction Projects        
            
7 Global Carbon Offset/Carbon Credit Market, By End User      
 7.1 Introduction         
 7.2 Energy & Power         
 7.3 Aviation          
 7.4 Industrial          
 7.5 Buildings          
 7.6 Transportation         
 7.7 Other End Users         
            
8 Global Carbon Offset/Carbon Credit Market, By Geography      
 8.1 Introduction         
 8.2 North America         
  8.2.1 US         
  8.2.2 Canada         
  8.2.3 Mexico         
 8.3 Europe          
  8.3.1 Germany         
  8.3.2 UK         
  8.3.3 Italy         
  8.3.4 France         
  8.3.5 Spain         
  8.3.6 Rest of Europe        
 8.4 Asia Pacific         
  8.4.1 Japan         
  8.4.2 China         
  8.4.3 India         
  8.4.4 Australia         
  8.4.5 New Zealand        
  8.4.6 South Korea        
  8.4.7 Rest of Asia Pacific        
 8.5 South America         
  8.5.1 Argentina        
  8.5.2 Brazil         
  8.5.3 Chile         
  8.5.4 Rest of South America       
 8.6 Middle East & Africa        
  8.6.1 Saudi Arabia        
  8.6.2 UAE         
  8.6.3 Qatar         
  8.6.4 South Africa        
  8.6.5 Rest of Middle East & Africa       
            
9 Key Developments          
 9.1 Agreements, Partnerships, Collaborations and Joint Ventures     
 9.2 Acquisitions & Mergers        
 9.3 New Product Launch        
 9.4 Expansions         
 9.5 Other Key Strategies        
            
10 Company Profiling          
 10.1 3Degrees          
 10.2 Finite Carbon         
 10.3 EKI Energy Services Ltd.         
 10.4 WGL Holdings, Inc.         
 10.5 NativeEnergy         
 10.6 South Pole Group         
 10.7 Carbon Care Asia Limited        
 10.8 Natureoffice GmbH         
 10.9 Carbon Credit Capital        
 10.10 Enking International        
 10.11 Cool Effect, Inc.         
 10.12 TEM (Tasman Environmental Markets)       
 10.13 Climate Impact Partners        
 10.14 Carbonfund          
 10.15 Green Mountain Energy        
 10.16 ForestCarbon          
 10.17 Bluesource LLC         
 10.18 Moss.Earth         
 10.19 Terrapass          
            
List of Tables           
1 Global Carbon Offset/Carbon Credit Market Outlook, By Region (2021-2030) ($MN)    
2 Global Carbon Offset/Carbon Credit Market Outlook, By Type (2021-2030) ($MN)    
3 Global Carbon Offset/Carbon Credit Market Outlook, By Voluntary Market (2021-2030) ($MN)   
4 Global Carbon Offset/Carbon Credit Market Outlook, By Compliance Market (2021-2030) ($MN)  
5 Global Carbon Offset/Carbon Credit Market Outlook, By Project Type (2021-2030) ($MN)   
6 Global Carbon Offset/Carbon Credit Market Outlook, By Removal/Sequestration Projects (2021-2030) ($MN) 
7 Global Carbon Offset/Carbon Credit Market Outlook, By Avoidance/Reduction Projects (2021-2030) ($MN) 
8 Global Carbon Offset/Carbon Credit Market Outlook, By End User (2021-2030) ($MN)   
9 Global Carbon Offset/Carbon Credit Market Outlook, By Energy & Power (2021-2030) ($MN)   
10 Global Carbon Offset/Carbon Credit Market Outlook, By Aviation (2021-2030) ($MN)   
11 Global Carbon Offset/Carbon Credit Market Outlook, By Industrial (2021-2030) ($MN)   
12 Global Carbon Offset/Carbon Credit Market Outlook, By Buildings (2021-2030) ($MN)   
13 Global Carbon Offset/Carbon Credit Market Outlook, By Transportation (2021-2030) ($MN)   
14 Global Carbon Offset/Carbon Credit Market Outlook, By Other End Users (2021-2030) ($MN)   
15 North America Carbon Offset/Carbon Credit Market Outlook, By Country (2021-2030) ($MN)   
16 North America Carbon Offset/Carbon Credit Market Outlook, By Type (2021-2030) ($MN)   
17 North America Carbon Offset/Carbon Credit Market Outlook, By Voluntary Market (2021-2030) ($MN)  
18 North America Carbon Offset/Carbon Credit Market Outlook, By Compliance Market (2021-2030) ($MN)  
19 North America Carbon Offset/Carbon Credit Market Outlook, By Project Type (2021-2030) ($MN)  
20 North America Carbon Offset/Carbon Credit Market Outlook, By Removal/Sequestration Projects (2021-2030) ($MN)
21 North America Carbon Offset/Carbon Credit Market Outlook, By Avoidance/Reduction Projects (2021-2030) ($MN) 
22 North America Carbon Offset/Carbon Credit Market Outlook, By End User (2021-2030) ($MN)   
23 North America Carbon Offset/Carbon Credit Market Outlook, By Energy & Power (2021-2030) ($MN)  
24 North America Carbon Offset/Carbon Credit Market Outlook, By Aviation (2021-2030) ($MN)   
25 North America Carbon Offset/Carbon Credit Market Outlook, By Industrial (2021-2030) ($MN)   
26 North America Carbon Offset/Carbon Credit Market Outlook, By Buildings (2021-2030) ($MN)   
27 North America Carbon Offset/Carbon Credit Market Outlook, By Transportation (2021-2030) ($MN)  
28 North America Carbon Offset/Carbon Credit Market Outlook, By Other End Users (2021-2030) ($MN)  
29 Europe Carbon Offset/Carbon Credit Market Outlook, By Country (2021-2030) ($MN)   
30 Europe Carbon Offset/Carbon Credit Market Outlook, By Type (2021-2030) ($MN)    
31 Europe Carbon Offset/Carbon Credit Market Outlook, By Voluntary Market (2021-2030) ($MN)  
32 Europe Carbon Offset/Carbon Credit Market Outlook, By Compliance Market (2021-2030) ($MN)  
33 Europe Carbon Offset/Carbon Credit Market Outlook, By Project Type (2021-2030) ($MN)   
34 Europe Carbon Offset/Carbon Credit Market Outlook, By Removal/Sequestration Projects (2021-2030) ($MN) 
35 Europe Carbon Offset/Carbon Credit Market Outlook, By Avoidance/Reduction Projects (2021-2030) ($MN) 
36 Europe Carbon Offset/Carbon Credit Market Outlook, By End User (2021-2030) ($MN)   
37 Europe Carbon Offset/Carbon Credit Market Outlook, By Energy & Power (2021-2030) ($MN)   
38 Europe Carbon Offset/Carbon Credit Market Outlook, By Aviation (2021-2030) ($MN)   
39 Europe Carbon Offset/Carbon Credit Market Outlook, By Industrial (2021-2030) ($MN)   
40 Europe Carbon Offset/Carbon Credit Market Outlook, By Buildings (2021-2030) ($MN)   
41 Europe Carbon Offset/Carbon Credit Market Outlook, By Transportation (2021-2030) ($MN)   
42 Europe Carbon Offset/Carbon Credit Market Outlook, By Other End Users (2021-2030) ($MN)   
43 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Country (2021-2030) ($MN)   
44 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Type (2021-2030) ($MN)   
45 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Voluntary Market (2021-2030) ($MN)  
46 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Compliance Market (2021-2030) ($MN)  
47 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Project Type (2021-2030) ($MN)   
48 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Removal/Sequestration Projects (2021-2030) ($MN) 
49 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Avoidance/Reduction Projects (2021-2030) ($MN) 
50 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By End User (2021-2030) ($MN)   
51 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Energy & Power (2021-2030) ($MN)  
52 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Aviation (2021-2030) ($MN)   
53 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Industrial (2021-2030) ($MN)   
54 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Buildings (2021-2030) ($MN)   
55 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Transportation (2021-2030) ($MN)  
56 Asia Pacific Carbon Offset/Carbon Credit Market Outlook, By Other End Users (2021-2030) ($MN)  
57 South America Carbon Offset/Carbon Credit Market Outlook, By Country (2021-2030) ($MN)   
58 South America Carbon Offset/Carbon Credit Market Outlook, By Type (2021-2030) ($MN)   
59 South America Carbon Offset/Carbon Credit Market Outlook, By Voluntary Market (2021-2030) ($MN)  
60 South America Carbon Offset/Carbon Credit Market Outlook, By Compliance Market (2021-2030) ($MN)  
61 South America Carbon Offset/Carbon Credit Market Outlook, By Project Type (2021-2030) ($MN)  
62 South America Carbon Offset/Carbon Credit Market Outlook, By Removal/Sequestration Projects (2021-2030) ($MN)
63 South America Carbon Offset/Carbon Credit Market Outlook, By Avoidance/Reduction Projects (2021-2030) ($MN) 
64 South America Carbon Offset/Carbon Credit Market Outlook, By End User (2021-2030) ($MN)   
65 South America Carbon Offset/Carbon Credit Market Outlook, By Energy & Power (2021-2030) ($MN)  
66 South America Carbon Offset/Carbon Credit Market Outlook, By Aviation (2021-2030) ($MN)   
67 South America Carbon Offset/Carbon Credit Market Outlook, By Industrial (2021-2030) ($MN)   
68 South America Carbon Offset/Carbon Credit Market Outlook, By Buildings (2021-2030) ($MN)   
69 South America Carbon Offset/Carbon Credit Market Outlook, By Transportation (2021-2030) ($MN)  
70 South America Carbon Offset/Carbon Credit Market Outlook, By Other End Users (2021-2030) ($MN)  
71 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Country (2021-2030) ($MN)  
72 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Type (2021-2030) ($MN)  
73 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Voluntary Market (2021-2030) ($MN) 
74 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Compliance Market (2021-2030) ($MN) 
75 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Project Type (2021-2030) ($MN)  
76 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Removal/Sequestration Projects (2021-2030) ($MN)
77 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Avoidance/Reduction Projects (2021-2030) ($MN)
78 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By End User (2021-2030) ($MN)  
79 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Energy & Power (2021-2030) ($MN) 
80 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Aviation (2021-2030) ($MN)  
81 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Industrial (2021-2030) ($MN)  
82 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Buildings (2021-2030) ($MN)  
83 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Transportation (2021-2030) ($MN) 
84 Middle East & Africa Carbon Offset/Carbon Credit Market Outlook, By Other End Users (2021-2030) ($MN) 

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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