The global carbon offset/carbon credit trading service market 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. 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 or appropriate emissions. 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 emission. 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 the environmental hazards and counter the carbon emission.
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 with 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:
The key difference between the two is that, as opposed to the VER, there is a third-party certifying authority that regulates the CER.
Europe dominates the global carbon market, as the companies 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 market in Europe is projected to hold a major market share during the forecast period, as the volatile carbon prices in Europe is increasing the demand for carbon credit trading services. The global leading polluters such as the US and China are yet to establish compulsory policies to reduce emissions.
On the basis of types, 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.
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 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.
In terms of regions, 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 significant share of the market in 2020. The market in Asia Pacific is projected to expand at a considerable CAGR during the forecast period.
The global carbon offset/carbon credit trading service market is dominated by key players such as 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.
Some frequently asked quetions 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.
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