Covina, July 23, 2024 (GLOBE NEWSWIRE) -- According to Prophecy Market Insights, the study concludes that the global carbon credits market size and share is expected to grow at a CAGR of 17.8% between 2024 and 2034. The market revenue of USD 550.1 Billion in 2024 is expected to grow up to USD 2436.2 Billion by 2034.
Carbon Credits Market Report Overview
Carbon credits give the owner the right to emit greenhouse gases up to a certain, predetermined quantity. One credit is equal to one ton of such emissions. They are handed out to businesses or even countries to offset their emissions under the cap-and-trade scheme. When firms pollute less than their quota, they can sell extra credits to other companies—financially incentivizing reduced emissions. Carbon credits represent activities related to reforestation, renewable energy production, and energy efficiency that reduce, avoid, or in some other way sequester GHG. They are the basic building block used by both voluntary and cap-and-trade carbon markets associated with climate change. There are two motivating factors for private companies to reduce their emissions.
Carbon credits are without a doubt one of the most useful instruments in mitigating climate change. They cap emissions, allow businesses to exchange credits between organizations, encourage innovation, and enable reductions that are economically viable. Moreover, businesses can offset carbon emissions to show its commitment to corporate social responsibility and thereby attract eco-sensitive customers in the future. Some of the benefits of carbon credits include worldwide sustainable development projects, financing for green technologies, and pressure exerted on markets to reduce emissions. They further promote economic expansion and the creation of green jobs. Developing nations can also help mitigate climate change by obtaining carbon credits from projects that produce these credits. In general, carbon credits will be one of the versatile instruments under mitigation in GHGs around the world, balancing economic and environmental goals.
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Our Free Sample Report includes:
- Overview & introduction of market study
- Revenue and CAGR of the market
- Drivers & Restrains factors of the market
- Major key players in the market
- Regional analysis of the market with a detailed graph
- Detailed segmentation in tabular form of market
- Recent developments/news of the market
- Opportunities & Challenges of the Market
Competitive Landscape:
The Carbon Credits Market is characterized by rapid growth, technological innovation, and fierce competition. Companies are expanding their global presence, focusing on sustainability, and diversifying their service offerings to stay competitive.
Some of the Key Market Players:
- The Carbon Trust
- Climate Impact Partners
- South Pole
- 3Degrees
- VERRA
- TerraPass
- CarbonClear
- PwC
- EcoAct
- ClimeCo
- Ecosecurities
- ALLCOT
- Atmosfair
- The Carbon Collective Company
- Sterling Planet Inc
- WGL Holdings, Inc.
- Green Mountain Energy Company
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Analyst View:
Carbon credits are necessary to slow down the effects of global warming because they allow businesses to emit specific levels of greenhouse gases. They are given out by cap-and-trade programs in compensation for emissions, and if they pollute less than the quota, then they can sell them to other businesses. Carbon credits help to realize renewable energy, reduce landfill methane, and conserve forests within voluntary and cap-and-trade carbon markets. Businesses' desire to compensate for their carbon contribution—largely from the aviation and electricity generation sectors—is fueling demand. However, on a global scale, a uniform standard pertaining to credit verification and quantification does not exist which will result in buyer confusion and inhibit price discovery.
Market Dynamics:
Drivers:
Supply of Carbon Credits Market
- Source reduction efforts include carbon reduction projects in the areas of renewable energy, landfills with methane reduction, and forest preservation. Emission reductions are verified and credited. New removal technologies can suck carbon dioxide from the atmosphere. At scale, they could represent an important new source of carbon credits.
Market Demand for Carbon Credits
- Business enterprises try to offset their carbon footprint to meet the set sustainability targets, mostly in the closely watched sectors of aviation and electricity generation. Stricter legislation by governments is opening up compliance markets in which businesses can buy carbon credits. Companies committed to carbon neutrality will become more appealing as investors and consumers squeeze them into climate action. The Paris Agreement is giving momentum to international cooperation on carbon reduction and, in turn, increasing demand for credits, which has then created new carbon markets as part of this global effort to fight climate change.
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Market Trends:
Quicker Reductions of Emissions
- Presently, there is no standard that is uniform and globally accepted on credit verification and quantification. Consequently, this generally lacks homogeneity between credits across different projects and geographical locations, which normally presents comparability problems for credits from different sources. This keen awareness, may mislead the buyer, hinder price discovery within the market, and discourage investment on issues to do with credit quality. The pipeline of more harmonized standards is under work, but problems always arise at the time when their implementation is being done all around the globe.
Segmentation:
Carbon Credits Market is segmented based on Type, Project Type, and Region.
Type Insights
- National, regional, or international carbon reduction regimes establish legally binding limitations on the emissions of GHG that shall control and constrain the compliance market. Companies are to act within these limits, lest they incur additional expenses in the form of purchasing extra carbon credits suppliers have available in their inventory. Examples include California's Cap-and-Trade Program and the EU Emissions Trading System. The voluntary market is one in which companies and individuals buy carbon credits as a voluntary, usually CSR-driven attempt at environmental stewardship. It encapsulates investment in renewable energy and forestry initiatives that attempt to reduce GHG emissions.
Product Type Insights
- Projects in the area of renewable energy—geothermal, hydro, solar, and wind—reduce fossil fuels and greenhouse gases. This kind of initiative is gainful in carbon credits and forms a prudent element of the sustainable system of energy. Energy efficiency projects, like industrial process up-gradation and building insulation, aim at reducing energy consumption and increasing energy efficiency. These projects also result in reduced carbon emissions through reduced energy use and the earning of carbon credits. Forestry projects, such as reforestation, afforestation, and conservation, not only protect biodiversity and air quality but also help avert climate change through their serving as carbon sinks. This attracts corporate entities that seek to organically reduce their carbon footprint.
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Recent Development:
- In July 2024, Carbon credits a ‘catalyst’ for climate action, not just a method to offset emissions: EcoSecurities chief. Carbon financing, be it through nature or technology-based solutions, will be key to near and long-term decarbonization in Asia. With the region’s emissions trading systems seeing some progress, regulation is still crucial to momentum and expansion.
- In July 2024, Eureka Moment! Amazon Hits 100% Renewable Energy Goal 7 Years Ahead. July 10 marked an extraordinary moment for Amazon, reaching its 100% renewable energy goal a stunning seven years ahead of schedule. Originally set for 2030, the rapid transition across all operations surprised the world.
Regional Insights
- North America: The most active carbon markets in North America exist within the United States and Canada and are driven by regional initiatives: California's Cap-and-Trade Program and carbon pricing regulations enacted by all of Canada's provinces. Hundreds of forestry and renewable energy projects across the region generate carbon credits, and this is reflected within both the voluntary marketplaces and compliance systems, where the underpinning of regulation requirements drives the business social responsibility of participants.
- Europe: Carbon credit markets are Europe-centric. The EU ETS belongs to the major compliance markets in the world and was among the first to come into existence. Europe has a solid base with an emphasis on energy efficiency and renewable energy projects. European-based firms would, therefore, be more likely to participate in the compliance market and are often observed selling into both this and the voluntary markets in the pursuit of establishing environmental credibility and very ambitious emission reduction targets.
Browse Detail Report on "Carbon Credits Market Size, Share, By Type (Compliance Market, Voluntary Market), By Project Type (Renewable Energy, Energy Efficiency, Forestry, Others), By End-Use (Power, Energy, Transportation, Others), and By Region - Trends, Analysis and Forecast till 2034" with complete TOC @ https://www.prophecymarketinsights.com/market_insight/carbon-credits-market-5517
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