Carbon Offset/Carbon Credit Trading Service Market Cover Page

Global Carbon Offset/Carbon Credit Trading Service Market

  • EP-73
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  • 181 Pages
  • 2020-07-23
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Aamir

Author:

Aamir Ansari

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Fact-checked by:

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Swapnil

Editor:

Swapnil Hedau

Market Outlook:

The global carbon offset/carbon credit trading service market size was valued at USD 210.8 Million in 2019 and is projected to reach USD 841.0 Million by 2027, expanding at a CAGR of over 19.9% during the forecast period 2020 - 2027The market growth is attributed to the growing demand for selling and purchasing carbon credits for limiting greenhouse gas emissions.

A carbon offset is a calculable avoidance, sequestration, or lessening of carbon dioxide (CO2), and other Green House Gas (GHG) releases. Carbon offsets are defined as project-based as they normally comprise specific projects or events that decrease or evade appropriate emissions.

Global Carbon Offset/Carbon Credit Trading Service Market Outlook

In investments in carbon-offset projects, individuals can fund GHG-reduction processes applied by individuals to decrease their carbon tax legal responsibility, which costs lesser than what could be accomplished through investment in a company's operations.

Carbon offset/carbon credits are marketplace structures for the reduction of greenhouse gases emission. The greenhouse gas emissions limits are set by governments or regulatory agencies. Some companies cannot achieve an immediate reduction in emissions economically.

Consequently, the companies can buy carbon credits to comply with the emission cap. Companies with carbon offsets (greenhouse gas (GHG) emissions reductions) are generally rewarded with additional carbon credits. The selling of credit surpluses can be used to subsidize potential pollution reduction programs.


The developing countries present in regions including Asia Pacific, Latin America, Africa, and others are undergoing rapid industrialization and simultaneously accounting for higher carbon emissions. With the emergence of new methods such as carbon offset/carbon credit trading services, the governments and other organizations operating across these regions are coming up with new rules and regulations to overcome environmental hazards and counter carbon emissions.

Carbon offset projects are evaluated and developed under particular standards and approaches that allow carbon credits to be supplied. Liability on the type of procedures used for the improvement of carbon credits can also be traded in voluntary markets of carbon credit. Offset projects can be classified rendering to either the technology engaged or type of GHG saving, or the specific practice selected to develop the project.

The four most corporate categories of offset projects are renewable energy, biological sequestration, energy efficiency, and reduction of non-CO2 GHG emissions. Carbon offset practice describes factors and procedures required for calculating emission reductions by a carbon offset project during its lifespan. Project developers can use prevailing methods or develop new ones.

Carbon offset practices have to be accepted by a regulatory body assigned to the management of a particular standard. This certifies that all carbon offset projects globally are established under the same practice.


The two types of credits are:

  • Voluntary emissions reduction (VER): A carbon offset that is traded in the over-the-counter or voluntary market for credits.
  • Certified emissions reduction (CER): Emission units (or credits) created through a regulatory framework to offset a project's emissions.

The key difference between the two is that, as opposed to the VER, there is a third-party certifying authority that regulates the CER.

Artificial Intelligence (AI) Impact on Carbon Offset/Carbon Credit Trading Service Market

Carbon offsets or credits are majorly used by companies to lower emissions, it is done by monitoring carbon footprints. Here Artificial Intelligence plays a crucial part as it helps in tracking these activities, predicting carbon emissions, and managing credits. By implementing Ai on carbon credit/credit offset-related operations, companies and organizations are able to track their investments and rely on the accuracy of data, which leads to an increase in investments in greenhouse gas reductions.

  • For instance, in July 2023, Nvidia Corporation a tech company and a supplier of artificial intelligence (AI) hardware and software, revealed its new approach to carbon capture and storage (CCS) that engineers and scientists can use to accelerate carbon sequestration. It is a method to lower climate change by redirecting carbon deep underground.

Carbon Offset/Carbon Credit Trading Service Market Dynamics

Major Drivers

Growing number of tree plantations and emission avoidance from the atmosphere to remove carbon is expected to drive the market. Carbon credits help to remove carbon from the environment which in turn reduces the emission. Moreover, organizations and companies buy carbon credits to limit greenhouse gas (GHG) emissions which is further expected to boost the market. 

  • For instance, in July 2022, Aera Group, the largest originator and trader of African carbon credits, announced the signing of a carbon credits transaction with EDF Trading, a trader in the wholesale energy markets and part of EDF Group, a global leader in low-carbon energies.

Moreover, increasing demand for carbon credits is expected to drive the market. The supply of carbon credits is low owing to this companies are pre-purchasing to cover the emission limit, thus boosting the market in the forecast period.

Existing Restraints

Carbon offset projects have significant risks which can affect the environment as any carbon that is isolated, can be released back to the atmosphere which is expected to restrain the market. For instance, after the deforestation of trees such as palm oil and soy, there are potential risks they get government permission to use the land again for production activities.

Emerging Opportunities

Carbon credit investment as it provides exposure to investors with directly researching for companies is expected to create lucrative opportunities for the market. Carbon credits are easy to invest and companies gain profit as by investing in carbon credits, the companies further contribute to the emission-reduction strategy.

Segmental Outlook

Type Segment Analysis

On the basis of type, the carbon offset/carbon credit trading service market has been segmented into industrial, household, energy industry, and others. Industrial gases cause high amounts of global warming. The reduction of these gases is a very effective way to decrease greenhouse gases (GHG). Industrial gas offset projects are low-cost to conduct and produce large numbers of offsets; however, industries are reluctant to adopt the low-carbon economy.

Global Carbon Offset/Carbon Credit Trading Service Market Types Segmentation

Application Segment Analysis

In terms of application, the market has been divided into renewable energy, REDD carbon offset, landfill methane projects, and others. Reducing Emissions from Deforestation and Forest Degradation (REDD) is a concept that has been developed in the UN climate conferences as a way to reduce large-scale forest loss and allied CO2 emissions. Renewable Energy Certificates (RECs) and carbon offsets are both environmental supplies that can be used to address GHG emissions.

Global Carbon Offset/Carbon Credit Trading Service Market Applications Segmentation

Regional Analysis

In terms of region, the global carbon offset/carbon credit trading service market has been fragmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Europe constituted a significant share of the market in 2020 and dominates the global market, as the companies that emit greenhouse gases under the European Union Emission Trading Scheme (EU ETS) are compelled to reduce their greenhouse releases or purchase pollution allowances or carbon credits from the market. 

The volatile carbon prices in Europe are increasing the demand for carbon credit trading services hence, the market in the region holds a major share during the forecast period. The global leading polluters such as the US and China are yet to establish compulsory policies to reduce emissions.

The market in Asia Pacific is projected to expand at a considerable CAGR during the forecast period. Growing population and infrastructure in the region are expected to drive the market during the forecast period. Nearly 60% of the world’s population is residing in Asia Pacific and the number of infrastructures and buildings is also increasing thus, resulting in huge climate change and carbon emissions.


Asia Pacific encounters nearly 4.3 billion population among which almost 2 billion live in urban areas which is expected to rise by the next few years. To ensure the healthy growth of the population, it is highly essential to mitigate emissions. Moreover, companies are undertaking various initiatives for carbon offsetting which is further contributing to the market in the region.

  • For instance, in August 2022, Visa, a leader in digital payments, announced the launch of Visa Eco Benefits in Asia Pacific. Eco Benefits is a collection of sustainability-focused solutions that are expected to help Visa cardholders across the region to understand the environmental impact of their day-to-day payments. Users are able to calculate the carbon footprint generated by Visa transactions, and access options for carbon offsetting-or charitable donations from the bank's website or app.

Global Carbon Offset/Carbon Credit Trading Service Market Regions

Key Benefits for Industry Participants & Stakeholders

  • In-depth analysis of the global carbon offset/carbon credit trading service market
  • Historical, current, and projected market size in terms of value
  • Potential & niche segments and regions exhibiting promising growth covered
  • Industry drivers, restraints, and opportunities covered in the study
  • Recent industry trends and developments
  • Competitive landscape & strategies of key players
  • A neutral perspective on global carbon offset/carbon credit trading service market performance

Global Carbon Offset/Carbon Credit Trading Service Market Key Players

 

Segments

By Type

  • Industrial
  • Household
  • Energy Industry
  • Other

By Application

  • REDD Carbon Offset
  • Renewable Energy
  • Landfill Methane Projects
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe
    • U.K.
    • France
    • Germany
    • Italy
    • Spain
    • Russia
    • Rest of the Europe
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • South East Asia
    • Rest of Asia Pacific
  • Middle East & Africa (MEA)
    • Saudi Arabia
    • South Africa
    • UAE
    • Rest of MEA

Key Market Players Profiled in the Report

  • 3Degrees.
  • Aera Group SAS
  • ALLCOT
  • Bioassets
  • Biofílica Ambipar Environment
  • Carbon Credit Capital, LLC.
  • China Beijing Equity Exchange.
  • EcoAct.
  • Forest Carbon
  • GreenTrees
  • guangzhou green stone carbon asset management co., ltd.
  • Native Energy
  • Schneider Electric
  • South Pole
  • Terrapass
  • Waycarbon.

Competitive Landscape

The global carbon offset/carbon credit trading service market is dominated by key players such as 3Degrees.; Aera Group SAS; ALLCOT; Bioassets; Biofílica Ambipar Environment; Carbon Credit Capital, LLC.; China Beijing Equity Exchange.; EcoAct.; Forest Carbon; GreenTrees; guangzhou green stone carbon asset management co., ltd.; Native Energy; Schneider Electric; South Pole; Terrapass; and Waycarbon.

Market players are pursuing acquisitions, product launches, collaborations, and geographic expansion to leverage untapped opportunities in the global Carbon Offset/Carbon Credit Trading Service market.

  • In July 2023, A new tool that will provide transparency and confidence to carbon projects was announced at the closing of the Latin American Climate Summit held in Panama, as one of the best to face the challenges of the Carbon Market in 2023. This tool is in the experimental stage and was designed so that annual reports can be made regardless of the stage of the project, from pre-feasibility to verification and certification.
  • In January 2023, one of the world’s leading international experts for corporate climate action, ClimatePartner, teams up with Aera Group S.A.S., one of the largest originators of high-quality climate projects, to launch the Africa Energy Access Carbon Cooperation. This new program focuses on accelerating renewable energy projects in various countries across Africa through carbon finance support.
  • In July 2022, Aera Group SAS, the leading originator and trader of African carbon credits announced the execution of a new transaction with Ecosphere+ Ltd, one of the largest worldwide nature-based solutions offsets provider.

Video Summary for Carbon Offset/Carbon Credit Trading Service Market

Chapter 1 Executive Summary
Chapter 2 Assumptions and Acronyms Used
Chapter 3 Research Methodology
Chapter 4 Carbon offset/carbon credit trading service Market Overview
   4.1 Introduction
      4.1.1 Market Taxonomy
      4.1.2 Market Definition
      4.1.3 Macro-Economic Factors Impacting the Market Growth
   4.2 Carbon offset/carbon credit trading service Market Dynamics
      4.2.1 Market Drivers
      4.2.2 Market Restraints
      4.2.3 Market Opportunity
   4.3 Carbon offset/carbon credit trading service Market - Supply Chain Analysis
      4.3.1 List of Key Suppliers
      4.3.2 List of Key Distributors
      4.3.3 List of Key Consumers
   4.4 Key Forces Shaping the Carbon offset/carbon credit trading service Market
      4.4.1 Bargaining Power of Suppliers
      4.4.2 Bargaining Power of Buyers
      4.4.3 Threat of Substitution
      4.4.4 Threat of New Entrants
      4.4.5 Competitive Rivalry
   4.5 Global Carbon offset/carbon credit trading service Market Size & Forecast, 2017-2027
      4.5.1 Carbon offset/carbon credit trading service Market Size and Y-o-Y Growth
      4.5.2 Carbon offset/carbon credit trading service Market Absolute $ Opportunity
   4.6 Global Carbon offset/carbon credit trading service Market: Impact Of Key Regulations
   4.7 Technology Outlook
Chapter 5 Global Carbon offset/carbon credit trading service Market Analysis and Forecast by Types
   5.1 Introduction
      5.1.1 Key Market Trends & Growth Opportunities by Types
      5.1.2 Basis Point Share (BPS) Analysis by Types
      5.1.3 Absolute $ Opportunity Assessment by Types
   5.2 Carbon offset/carbon credit trading service Market Size Forecast by Types
      5.2.1 Industrial
      5.2.2 Household
      5.2.3 Energy Industry
      5.2.4 Others
   5.3 Market Attractiveness Analysis by Types
Chapter 6 Global Carbon offset/carbon credit trading service Market Analysis and Forecast by Applications
   6.1 Introduction
      6.1.1 Key Market Trends & Growth Opportunities by Applications
      6.1.2 Basis Point Share (BPS) Analysis by Applications
      6.1.3 Absolute $ Opportunity Assessment by Applications
   6.2 Carbon offset/carbon credit trading service Market Size Forecast by Applications
      6.2.1 REDD Carbon Offset
      6.2.2 Renewable Energy
      6.2.3 Landfill Methane Projects
      6.2.4 Others
   6.3 Market Attractiveness Analysis by Applications
Chapter 7 Global Carbon offset/carbon credit trading service Market Analysis and Forecast by Region
   7.1 Introduction
      7.1.1 Key Market Trends & Growth Opportunities by Region
      7.1.2 Basis Point Share (BPS) Analysis by Region
      7.1.3 Absolute $ Opportunity Assessment by Region
   7.2 Carbon offset/carbon credit trading service Market Size Forecast by Region
      7.2.1 North America
      7.2.2 Europe
      7.2.3 Asia Pacific
      7.2.4 Latin America
      7.2.5 Middle East & Africa (MEA)
   7.3 Market Attractiveness Analysis by Region
Chapter 8 Coronavirus Disease (COVID-19) Impact
   8.1 Introduction
   8.2 Current & Future Impact Analysis
   8.3 Economic Impact Analysis
   8.4 Government Policies
   8.5 Investment Scenario
Chapter 9 North America Carbon offset/carbon credit trading service Analysis and Forecast
   9.1 Introduction
   9.2 North America Carbon offset/carbon credit trading service Market Size Forecast by Country
      9.2.1 U.S.
      9.2.2 Canada
   9.3 Basis Point Share (BPS) Analysis by Country
   9.4 Absolute $ Opportunity Assessment by Country
   9.5 Market Attractiveness Analysis by Country
   9.6 North America Carbon offset/carbon credit trading service Market Size Forecast by Types
      9.6.1 Industrial
      9.6.2 Household
      9.6.3 Energy Industry
      9.6.4 Others
   9.7 Basis Point Share (BPS) Analysis by Types
   9.8 Absolute $ Opportunity Assessment by Types
   9.9 Market Attractiveness Analysis by Types
   9.10 North America Carbon offset/carbon credit trading service Market Size Forecast by Applications
      9.10.1 REDD Carbon Offset
      9.10.2 Renewable Energy
      9.10.3 Landfill Methane Projects
      9.10.4 Others
   9.11 Basis Point Share (BPS) Analysis by Applications
   9.12 Absolute $ Opportunity Assessment by Applications
   9.13 Market Attractiveness Analysis by Applications
Chapter 10 Europe Carbon offset/carbon credit trading service Analysis and Forecast
   10.1 Introduction
   10.2 Europe Carbon offset/carbon credit trading service Market Size Forecast by Country
      10.2.1 Germany
      10.2.2 France
      10.2.3 Italy
      10.2.4 U.K.
      10.2.5 Spain
      10.2.6 Russia
      10.2.7 Rest of Europe
   10.3 Basis Point Share (BPS) Analysis by Country
   10.4 Absolute $ Opportunity Assessment by Country
   10.5 Market Attractiveness Analysis by Country
   10.6 Europe Carbon offset/carbon credit trading service Market Size Forecast by Types
      10.6.1 Industrial
      10.6.2 Household
      10.6.3 Energy Industry
      10.6.4 Others
   10.7 Basis Point Share (BPS) Analysis by Types
   10.8 Absolute $ Opportunity Assessment by Types
   10.9 Market Attractiveness Analysis by Types
   10.10 Europe Carbon offset/carbon credit trading service Market Size Forecast by Applications
      10.10.1 REDD Carbon Offset
      10.10.2 Renewable Energy
      10.10.3 Landfill Methane Projects
      10.10.4 Others
   10.11 Basis Point Share (BPS) Analysis by Applications
   10.12 Absolute $ Opportunity Assessment by Applications
   10.13 Market Attractiveness Analysis by Applications
Chapter 11 Asia Pacific Carbon offset/carbon credit trading service Analysis and Forecast
   11.1 Introduction
   11.2 Asia Pacific Carbon offset/carbon credit trading service Market Size Forecast by Country
      11.2.1 China
      11.2.2 Japan
      11.2.3 South Korea
      11.2.4 India
      11.2.5 Australia
      11.2.6 South East Asia (SEA)
      11.2.7 Rest of Asia Pacific (APAC)
   11.3 Basis Point Share (BPS) Analysis by Country
   11.4 Absolute $ Opportunity Assessment by Country
   11.5 Market Attractiveness Analysis by Country
   11.6 Asia Pacific Carbon offset/carbon credit trading service Market Size Forecast by Types
      11.6.1 Industrial
      11.6.2 Household
      11.6.3 Energy Industry
      11.6.4 Others
   11.7 Basis Point Share (BPS) Analysis by Types
   11.8 Absolute $ Opportunity Assessment by Types
   11.9 Market Attractiveness Analysis by Types
   11.10 Asia Pacific Carbon offset/carbon credit trading service Market Size Forecast by Applications
      11.10.1 REDD Carbon Offset
      11.10.2 Renewable Energy
      11.10.3 Landfill Methane Projects
      11.10.4 Others
   11.11 Basis Point Share (BPS) Analysis by Applications
   11.12 Absolute $ Opportunity Assessment by Applications
   11.13 Market Attractiveness Analysis by Applications
Chapter 12 Latin America Carbon offset/carbon credit trading service Analysis and Forecast
   12.1 Introduction
   12.2 Latin America Carbon offset/carbon credit trading service Market Size Forecast by Country
      12.2.1 Brazil
      12.2.2 Mexico
      12.2.3 Rest of Latin America (LATAM)
   12.3 Basis Point Share (BPS) Analysis by Country
   12.4 Absolute $ Opportunity Assessment by Country
   12.5 Market Attractiveness Analysis by Country
   12.6 Latin America Carbon offset/carbon credit trading service Market Size Forecast by Types
      12.6.1 Industrial
      12.6.2 Household
      12.6.3 Energy Industry
      12.6.4 Others
   12.7 Basis Point Share (BPS) Analysis by Types
   12.8 Absolute $ Opportunity Assessment by Types
   12.9 Market Attractiveness Analysis by Types
   12.10 Latin America Carbon offset/carbon credit trading service Market Size Forecast by Applications
      12.10.1 REDD Carbon Offset
      12.10.2 Renewable Energy
      12.10.3 Landfill Methane Projects
      12.10.4 Others
   12.11 Basis Point Share (BPS) Analysis by Applications
   12.12 Absolute $ Opportunity Assessment by Applications
   12.13 Market Attractiveness Analysis by Applications
Chapter 13 Middle East & Africa (MEA) Carbon offset/carbon credit trading service Analysis and Forecast
   13.1 Introduction
   13.2 Middle East & Africa (MEA) Carbon offset/carbon credit trading service Market Size Forecast by Country
      13.2.1 Saudi Arabia
      13.2.2 South Africa
      13.2.3 UAE
      13.2.4 Rest of Middle East & Africa (MEA)
   13.3 Basis Point Share (BPS) Analysis by Country
   13.4 Absolute $ Opportunity Assessment by Country
   13.5 Market Attractiveness Analysis by Country
   13.6 Middle East & Africa (MEA) Carbon offset/carbon credit trading service Market Size Forecast by Types
      13.6.1 Industrial
      13.6.2 Household
      13.6.3 Energy Industry
      13.6.4 Others
   13.7 Basis Point Share (BPS) Analysis by Types
   13.8 Absolute $ Opportunity Assessment by Types
   13.9 Market Attractiveness Analysis by Types
   13.10 Middle East & Africa (MEA) Carbon offset/carbon credit trading service Market Size Forecast by Applications
      13.10.1 REDD Carbon Offset
      13.10.2 Renewable Energy
      13.10.3 Landfill Methane Projects
      13.10.4 Others
   13.11 Basis Point Share (BPS) Analysis by Applications
   13.12 Absolute $ Opportunity Assessment by Applications
   13.13 Market Attractiveness Analysis by Applications
Chapter 14 Competition Landscape
   14.1 Carbon offset/carbon credit trading service Market: Competitive Dashboard
   14.2 Global Carbon offset/carbon credit trading service Market: Market Share Analysis, 2019
   14.3 Company Profiles (Details – Overview, Financials, Developments, Strategy)
      14.3.1 3Degrees
      14.3.2 AERA GROUP SAS
      14.3.3 Allcot Group
      14.3.4 Bioassets
      14.3.5 Biofílica
      14.3.6 Carbon Credit Capital
      14.3.7 CBEEX
      14.3.8 EcoAct group
      14.3.9 Forest Carbon
      14.3.10 GreenTrees
      14.3.11 Guangzhou Greenstone
      14.3.12 Native Energy
      14.3.13 Schneider Electric
      14.3.14 South Pole Group
      14.3.15 Terrapass
      14.3.16 WayCarbon

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FAQ Section

Some frequently asked questions about this report!

Additional company profiles can be provided on request.

Yes, the report covers type specific information such as Industrial, Household, Energy Industry, Other.

According to this Growth Market Reports report, the market from carbon offset/carbon credit trading service is likely to register a CAGR of 19.9% during forecast period 2020-2027, with an anticipated valuation of USD 841.0 million by the end of the 2027.

In addition to market size (in US$ Million) and company market share (in % for base year 2019), other data such as regulatory framework, technology outlook, macro-economic factors and impact of COVID-19 on the market is available in final report.

The economy’s decarbonization, rising demand from developing economies, and untapped market with the other traditional alternatives are expected to drive the market growth during forecast period.

REDD carbon offset, renewable energy, landfill methane projects, others are the key application that are driving the carbon offset/carbon credit trading service market.

Factors such as competitive strength and market positioning are key areas considered while selecting top companies to be profiled.

The market is expected to witness slight increase due to impact of COVID-19 pandemic on the carbon offset/carbon credit trading service market.

The base year considered for the global carbon offset/carbon credit trading service market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017 & 2018 are the historic years and the forecast is provided from 2020 to 2027.

Major manufactures include Carbon Credit Capital, Terrapass, Schneider Electric, 3Degrees, NativeEnergy, GreenTrees, South Pole Group, Aera Group, Allcot Group, Carbon Clear, Forest Carbon, Bioassets, Biofílica WayCarbon, CBEEX, and Guangzhou Greenstone.