Climate and carbon finance provide capital to fund climate change mitigation and adaptation projects including renewable energy, energy efficiency, forestry and agriculture projects that generate carbon credits. Such projects help reduce greenhouse gas emissions or remove carbon already in the atmosphere. The global climate and carbon finance market provides financing options to policymakers, corporations and individuals looking to offset their carbon footprint.
The global climate and carbon finance market is estimated to be valued at US$ 367 Bn in 2023 and is expected to exhibit a CAGR of 33.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving the climate and carbon finance market is the rising concerns over carbon emissions globally. There is a growing recognition among governments, corporations and individuals about the role of greenhouse gas emissions in accelerating climate change. This has led to various policy measures and initiatives to reduce dependence on fossil fuels and transition to cleaner sources of energy. Climate and carbon finance plays a crucial role in financing such transition by channeling capital to low-carbon projects and technologies. The carbon credits generated from such projects also help organizations to offset their emissions and achieve carbon neutrality targets. With stringent regulations and net-zero commitments in place, the demand for climate financing solutions is expected to significantly grow over the coming years.
Segment Analysis
The climate and carbon finance market is dominated by voluntary segment. Over 60% of the market caters to voluntary carbon credits as corporates and individuals are increasingly looking to offset their carbon footprint voluntarily without any mandatory compliance. This segment is growing faster than compliance segment as awareness about carbon neutrality is increasing globally and firms want to demonstrate their commitment to sustainability through voluntary offsets.
Key Takeaways
The Global Climate And Carbon Finance Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global climate and carbon finance market is estimated to be valued at US$ 367 Bn in 2023 and is expected to exhibit a CAGR of 33.7% over the forecast period 2023 to 2030.
Regional analysis: Europe dominates the climate and carbon finance market currently accounting for over 35% share due to stringent carbon reduction targets and well established emission trading schemes in countries like EU. The region is expected to continue its dominance over the forecast period due to concerted efforts by governments and corporates towards achieving carbon neutrality well ahead of global targets. Asia Pacific is expected to be the fastest growing region during the forecast period supported by the increasing focus of large developing countries like China and India on renewable energy and emission reduction initiatives.
Key players: Key players operating in the climate and carbon finance market are Climate Finance Partners (United States), Carbon Credit Capital (United States), ClimateCare (United Kingdom), South Pole Group (Switzerland), Climate Trust Capital (United States), Carbon Clear (United Kingdom), EcoAct (France), First Climate (Germany), ClimatePartner (Germany), Ecosphere+ (United Kingdom), Verra (United States), Gold Standard (Switzerland), Natural Capital Partners (United Kingdom), Climate Friendly (Australia), Forest Carbon (United Kingdom). These players are focusing on expanding their footprint through collaborations and acquisitions to strengthen their market position and service offerings
For More Insights, Read: https://www.newsstatix.com/climate-and-carbon-finance-market-size-share-and-growth-forecast-2023-2030/
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