Global Carbon Offset Market Growth Accelerated by Increasing Climate Change Concerns

Carbon offsets are financial assets used to compensate for carbon emissions in one place by a reduction of carbon emissions made elsewhere. The increasing awareness regarding climate change and the need to reduce carbon footprint is accelerating the demand for carbon offset programs by organizations and individuals. Carbon offsets allow greenhouse gas emitters to balance out their emissions with an equivalent emission reduction elsewhere through financing projects like renewable energy, energy efficiency and reforestation.

Market key trends:

One of the key trends driving the growth of the carbon offset market is the increasing climate change concerns. As the effects of climate change like rising global temperatures, melting glaciers, rising sea levels and intensifying extreme weather events are becoming prominent, more individuals and organizations are recognizing the urgent need to reduce carbon footprint and transition to a low carbon economy. This is increasing the adoption of voluntary carbon offset programs. According to the UN Environment Program, offset purchasing intention is rising rapidly and the voluntary carbon market could grow 15-fold and reach $50 billion by 2030 if climate policies and action are strengthened globally. The increasing climate change concerns are thus expected to accelerate the demand for carbon offsets over the forecast period.

Segment Analysis

The global carbon offset market is dominated by the forestry segment. This segment accounts for nearly 40% of the total market share owing to the high demand for REDD+ projects that focus on reducing emissions from deforestation and degradation. Some of the major contributors to emissions reductions under this segment include avoided deforestation and forest management projects.

Key Takeaways

The Global Carbon Offset Market Growth is expected to witness high over the forecast period owing to stringent regulations and initiatives aimed at reducing greenhouse gas emissions. The global Carbon Offset Market is estimated to be valued at US$ 414.8 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030.

Regional analysis

North America currently dominates the carbon offset market and is expected to continue its dominance over the forecast period. This can be attributed to the presence of developed economies like the US and Canada that have put regulations and incentives in place aimed at achieving climate targets and carbon neutrality goals. The region is also an early adopter of carbon offsetting programs and emissions trading schemes have further boosted adoption. However, Asia Pacific is projected to be the fastest growing regional market owing to rapidly developing economies like China and India that are making efforts to scale up renewable energy adoption and implement climate action plans to curb emissions.

Key players

Key players operating in the carbon offset market are AptarGroup, Weener Plastics Group, Bormioli Rocco Pharma, Pacific Packaging Components, PCC Exol, SHL Group, O.Berk Company, Winfield Laboratories, O.Berk, Comar, RPC Group, Alpha Packaging, Pretium Packaging, Silgan Holdings, Origin Pharma Packaging, Vidchem pty ltd, Mold-Rite Plastics, Berry Global, Amcor, Gerresheimer.

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