Carbon Offset/Carbon Credit Trading Service Market Size 2030
Global Carbon Offset/Carbon Credit Trading Service Market
Segments - by Type (Industrial, Household, Energy Industry, and Others), Application (REDD Carbon Offset, Renewable Energy, Landfill Methane Projects, and Others), and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2020 – 2027
Segments - by Type (Industrial, Household, Energy Industry, and Others), Application (REDD Carbon Offset, Renewable Energy, Landfill Methane Projects, and Others), and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2020 – 2027
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 - 2027. The 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.
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.
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.
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.
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
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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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.
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.