Burlingame, Oct. 06, 2023 (GLOBE NEWSWIRE) -- According to Coherent Market Insights, global Carbon Offset market is estimated to be valued at US$ 414.80 billion in 2023 and is expected to exhibit a CAGR of 31.7% during the forecast period (2022-2030). The carbon offset is important to combat climate change and this involves the buying and selling of carbon offsets, which are credits that present a reduction in greenhouse gas (GHG) emissions. Generally, these offsets are generated by projects and activities that either reduce emissions or eliminate the carbon dioxide from the atmosphere. The carbon offset market is witnessing strong growth on the account of growing environmental concers.
Growing numbers of corporations setting ambitious net-zero and carbon neutrality targets is a recent trend in the global carbon offset market. This ongoing trend is creating higher demand for carbon offset projects to meet the growing need to cut the emissions. Also, nature-based solutions, such as reforestation, afforestation, and soil carbon sequestration, are gaining importance.
Market Drivers:
Several organizations and regulatory bodies certify carbon offsets to safeguard their quality and legitimacy. For instance, Verified Carbon Standard (VCS), the Climate Action Reserve (CAR), and the Gold Standar provides transparency and credibility to offset projects, reassuring buyers that they are investing in genuine emissions reductions. Thus, growing regulatory iniatitives is expected to drive carbon offset market growth.
Emerging technologies such as direct air capture and carbon mineralization that remove CO2 from the atmosphere are projected to contribute to the carbon offset market growth. For instance, in May 2023, 3M has expanded its ongoing commitment to materials science-based climate tech solutions by working with Svante Technologies, Inc. (Svante) to develop material that can trap carbon dioxide (CO2) found in the atmosphere and permanently remove it.
Read full market research report, "Carbon Offset Market, By Project Type, By Geographical Location, By Carbon Offset Standards, By Industry Sectors, By Carbon Offset Mechanisms, And By Geography, Market Size & Share Analysis - Growth Trends & Forecasts, 2023-2030", published by Coherent Market Insights.
Carbon Offset Market Report Coverage
| Report Attribute | Details |
| Forecast Period: | 2023 to 2030 |
| Market Size in 2023: | US$ 414.80 Bn |
| 2030 Value Projection: | US$ 2,850.62 Bn |
| Growth rate | CAGR of 31.7% from 2023 to 2030 |
| Base year for estimation | 2022 |
| Historical data | 2018 - 2021 |
| Forecast period | 2023 - 2030 |
Market Key Developments:
In May 2023, The EY organization announced the beta availability and use of EY OpsChain ESG on the EY Blockchain SaaS platform. Developed on the Ethereum blockchain, the new solution will provide a single, verifiable view of CO2 emissions (CO2e) to address the needs of enterprises that struggle to accurately measure and track their carbon footprint.
In July 2022, Sateri, the largest viscose fibre manufacturer, launched three zero-carbon fibre products: EcoCosy®, Lyocell and FINEX™. All three products have obtained the PAS2060 assessment certification for carbon neutrality and have been launched in their respective markets.
Key Market Takeaways:
Global carbon offset market is expected to exhibit a CAGR of 31.7% during the forecast period, owing to growing number of carbon offset programs, rising environmental concerns, and increasing launch of carbn removal technologies.
On the basis of Project Type, renewable energy segment is expected to hold a dominant position, owing to the growing demand for renewable source of engery. They generate clean energy from sources such as solar, wind, hydro, and biomass, reducing the need for fossil fuels
On the basis of Geographical Location, International Energy segment is expected to hold a dominant position, owing to the growing demand for reduction of carbon emission from envrionemnt.
On the basis of Carbon Offset Standards, Verified Carbon Standard (VCS) segment is expected to hold a dominant position, owing to the fact that world's most commonly used greenhouse gas (GHG) crediting program.
On the basis of Industry Sectors, forestry and agriculture segment is expected to hold a dominant position, owing to the growing initiatives that involve afforestation, reforestation, and avoided deforestation to capture and store carbon.
On the basis of Carbon Offset Mechanisms, voluntary offsets segment is expected to hold a dominant position, owing to the increasing number of individuals and businesses to voluntarily purchase carbon offsets.
On the basis of Market Participants, businesses and corporations segment is expected to hold a dominant position. They are project developers, environmental organizations, or even companies investing in their emissions reduction initiatives.
On the basis of Offset Credit Types, carbon removal offsets segment is expected to hold a dominant position, owing to the increasing number of programs to remove carbon emissions from environment.
On the basis of Project Scale, Large-Scale segment is expected to hold a dominant position, owing to the fact that growing demand for large-scale project on global level.
On the basis of Offset Project Duration, Long-Term segment is expected to hold a dominant position, owing to the growing need for environmental sustainability
On the basis of Region, North America is expected to hold a dominant position over the forecast period, due to increasing adoption carbon offset initaitives in individual and corporations.
Key players operating in the global Carbon Offset market include 3Degrees Inc., NativeEnergy, ClimatePartner, Carbon Credit Capital, Terrapass, Renewable Choice Energy, Gold Standard, Offsetters, South Pole Group, Veridium, Cool Effect, ClimateCare, MyClimate, Forest Carbon, Verified Carbon Standard
Detailed Segmentation:
- Global Carbon Offset Market, By Project Type:
- Renewable Energy
- Reforestation and Afforestation
- Methane Capture
- Energy Efficiency
- Land Use and Agriculture
- Avoided Deforestation
- Carbon Capture and Storage (CCS)
- Global Carbon Offset Market, By Geographical Location:
- Residential or Country-Specific
- International
- Global Carbon Offset Market, By Carbon Offset Standards:
- Verified Carbon Standard (VCS)
- Gold Standard
- Global Carbon Offset Market, By Industry Sectors:
- Energy and Power Generation
- Forestry and Agriculture
- Waste Management
- Industrial Processes
- Global Carbon Offset Market, By Carbon Offset Mechanisms:
- Cap-and-Trade
- Voluntary Offsets
- Global Carbon Offset Market, By Market Participants:
- Business and Corporation
- Individuals and Consumers
- Governments and Institutions
- Global Carbon Offset Market, By Offset Credit Types:
- Carbon Removal Offsets
- Emission Reduction Offsets
- Global Carbon Offset Market, By Project Scale:
- Small-Scale
- Large-Scale
- Global Carbon Offset Market, By Offset Project Duration:
- Short-Term
- Long-Term
- Global Carbon Offset Market, By Geography:
- North America
- U.S.
- Canada
- Europe
- Germany
- Italy
- U.K.
- France
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- Australia
- India
- ASEAN
- South Korea
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- Israel
- South Africa
- Rest of Middle East & Africa
- North America
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