The global carbon offsets market size was valued at USD 1,064.81 billion in 2023 and is projected to grow from USD 1,205.40 billion in 2024 to USD 3,230.29 billion by 2032, exhibiting a CAGR of 13.1% during the forecast period. The global carbon offsets market is experiencing strong growth as governments, corporations, and consumers prioritize reducing greenhouse gas (GHG) emissions. Compliance frameworks under the Paris Agreement, combined with rising voluntary participation from industries, are driving demand for carbon credits and offset projects. The market is expected to grow steadily through 2032, supported by stringent climate policies and increasing corporate commitments toward sustainability.
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Carbon Offsets Market Segmentation Analysis:
By Type
The compliance market dominated in 2023, driven by stricter emission limits under the Paris Agreement. Governments issue carbon credits, encouraging industries to invest in offset projects like avoidance/reduction and removal/sequestration, boosting segment growth.
By Project Type
Avoidance/reduction projects held the largest share in 2023 due to rising initiatives across Europe, Asia Pacific, and North America to cut emissions. The removal/sequestration segment is steadily growing, supported by cost-effective methods such as oxy-fuel, post-combustion, and industrial separation to capture CO₂.
By End-user
The renewable energy sector led in 2023, with rising CO₂ emissions and health concerns driving investments in projects like hydro and wind. These reduce reliance on fossil fuels and lower carbon emissions, strengthening the segment’s growth.
Report Coverage:
The report provides an account of the major factors set to drive the industry expansion over the forthcoming years. It further presents an overview of the key trends in the market. An analysis of the industry based on various segments has also been presented in the report.
Drivers and Restraints:
Stringent Government Regulations to Propel Industry Growth
Following the Kyoto Protocol of 1977 and the Paris Agreement of 2015, the governments of various nations have put limits on CO2e emissions. This led to an increased government emphasis on the promotion of the carbon credit system for a range of projects, including reforestation, carbon capture, and renewable energy. Considering these factors, the enforcement of strict regulatory policies is touted to boost carbon offsets market growth over the coming years.
However, the lack of awareness regarding carbon credit trade may restrain industry expansion.
Regional Insights:
Europe Recorded Major Share Owing to Soaring Investments in Sustainability Projects
Europe registered a dominating share of the market in 2022 which is favored by the rising investments in sustainability projects. The regional market size stood at USD 750.53 billion in 2022.
North America market size is set to surge owing to the enforcement of environment policies in countries in the region. These policies have led to an increase in investments focused on renewable energy projects.
Competitive Landscape:
Major Players Undertake Various Strategies to Secure a Competitive Edge
Leading companies are deploying a range of strategies for gaining a competitive edge. Some of these steps include acquisitions and the launch of new carbon offsets. A few of the key players in the market are EcoAct, NativeEnergy, and others.
Key Industry Development:
August 2023 – The Global Carbon Council, based in Doha, has announced its intention to list its carbon offset programs on the MENA exchanges platform in Qatar. This strategic move aims to attract a wider pool of investors and stimulate the growth of active carbon emission projects in the Middle East region.
List of the Key Players in the Carbon Offsets Market:
- Carbon Credit Capital (U.S.)
- Native (U.S.)
- Green Mountain Energy Company (U.S.)
- EcoAct (U.K.)
- Greenfleet (U.S.)
- ALLCOT (Switzerland)
- 3Degrees Group, Inc. (U.S.)
- WayCarbon (Brazil)
- South Pole (Switzerland)
- TerraPass (U.S.)
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