New York, USA, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Market Overview:
The global voluntary carbon credit market was estimated at USD 1,908.41 million in 2023 and is projected to hit USD 14,560.17 million by 2032. The market is likely to record a compound annual growth rate (CAGR) of 25.3% during the forecast period from 2024-2032.
What Is a Voluntary Carbon Credit?
A voluntary carbon credit is a strategy for offsetting the carbon emissions of businesses, organizations, or individuals by investing in projects such as renewable energy initiatives, reforestation efforts, and methane capture programs that reduce or eliminate greenhouse gases from the air. These carbon credits fulfill urgent financial needs for critical climate mitigation activities that would otherwise be difficult to address.
High-integrity carbon credits enable companies to go further and meet their greenhouse gas (GHG) emission targets. There is no centralized market. Private actors can directly purchase credits from project developers via a broker or from a retailer who has already acquired them from project developers. VCM includes various project categories, from small community-based ones like clean cookstoves to Large industrial ones, such as high-volume hydro plants and commercial reforestation.
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Key Market Stats:
- The global voluntary carbon credit market size was valued at USD 1,908.41 million in 2023.
- The market for the voluntary carbon credit industry is expected to grow from USD 2,388.76 million in 2024 to USD 14,560.17 million by 2032.
- It is expected that the market will exhibit a compound annual growth rate (CAGR) of 25.3% during the forecast period (2024 - 2032).
Major Findings From the Report:
- As various companies buy carbon credits to achieve greenhouse gas emissions, the market for voluntary carbon credit experiences robust growth. In addition, to meet consumer requirements for eco-friendly products and brands, organizations are investing in carbon credits to improve their green credentials.
- The market is segregated by project type, end-user, and region.
- Based on region, North America recorded the largest share.
Market Drivers And Trends:
- Advanced Projects: The rising activities towards advanced projects such as carbon capture and storage (CCS), soil carbon sequestration, and blue carbon projects fuel the voluntary carbon credit market growth.
- Technological Developments: Increasing technological advancements in monitoring, reporting, and verification technologies to augment the accuracy and transparency of carbon credit projects further accelerate the market growth. Also, market accessibility has been eased due to the development of online marketplaces and exchanges that provide carbon credits to purchase, sell, and trade.
- Demand for Carbon Offset Projects and Related Credits: Another factor supporting the market growth is the growing demand for carbon offset projects and related credits. Various factors, such as consumer preferences, regulatory pressures, and corporate sustainability goals, are contributing to the voluntary carbon credit market demand.
- Favorable Government Policies: The introduction of new policy guidelines to support high-quality carbon offset projects boosts the market growth. For instance, the US government introduced new policy guidelines for the voluntary carbon credit market in 2024. The aim was to ensure the high integrity of voluntary carbon markets (VCMs) by updating standards.
Industry’s Prominent Players:
- 3Degrees
- Carbon Credit Capital
- CarbonBetter
- Climate Partner GmbH
- EKI Energy Services Ltd.
- Finite Carbon
- Natureoffice GmbH
- South Pole Group
- TEM (Tasman Environmental Markets)
- Terrapass
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Geographical Landscape:
- North America: Due to the availability of well-established financial markets and trading platforms that provide buyers and sellers access to carbon credits, the market is gaining a boost. Rising investments in renewable energy, carbon capture, and other emissions reduction technologies are further expected to foster voluntary carbon credit market share in North America. Other growth-leading factors in the region include favorable regulatory policies and incentives and increasing growth strategies by key companies.
- Asia-Pacific: The market is likely to generate the fastest CAGR over the foreseen period because businesses are investing in carbon offset projects to meet the increasing awareness and commitment to CSR initiatives. Moreover, China’s growing need for carbon emission strategies due to rapid industrialization and urbanization is driving voluntary carbon credit industry expansion.
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Market Segmentation:
Voluntary Carbon Credit Project Type Outlook
- Removal/Sequestration projects
- Avoidance/Reduction projects
Voluntary Carbon Credit End User Outlook
- Aviation
- Energy
- Power
- Buildings
- Transportation
- Industrial
- Forestry
- Others
Voluntary Carbon Credit Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia-Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
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