Carbon Credits Market Revenue to Hit $143.5 Billion by 2032

0
563

According to a new report published by Allied Market Research, the carbon credits market size was valued at $2 billion in 2022, and is estimated to reach $143.5 billion by 2032, growing at a CAGR of 55.5% from 2023 to 2032.

The key players profiled in the carbon credits market report include South Pole, 3Degrees, EKI Energy Services Ltd, TerraPass, NATUREOFFICE, Moss.Earth, Climate Impact Partners, Carbon Credit Capital, LLC, CarbonBetter, and NativeEnergy.

Asia-Pacific dominated the global market in 2022 and is projected to be the fastest-growing region during the forecast period. The popularity of carbon credits market across countries namely China, Japan, India, and others can be attributed to several sustainability initiatives taken by the companies in this region.

Carbon credits can be bought and sold in carbon markets. Buyers, such as companies, governments, or individuals, purchase carbon credits to offset their own emissions and meet their sustainability goals.

The carbon credits are transferred from the seller to the buyer, often facilitated through specialized platforms or exchanges. Carbon credits help the companies to minimize their greenhouse gas emissions.

In order to meet the net-zero carbon emissions, it is necessary to lower greenhouse gas emissions to almost 50% by 2030 and to reduce to net zero by 200. Thus, purchasing carbon credits can help in addressing huge amount of greenhouse gas emissions. Carbon credits are basically the certificates that represents the amount of greenhouse gases removed from the atmosphere.

In addition, participating in voluntary carbon credit markets enables companies to showcase climate leadership and demonstrate their commitment to addressing climate change. This involvement often goes beyond basic compliance requirements, as companies voluntarily take additional measures to reduce their emissions and support emission reduction projects. Such initiatives can drive innovation in clean technologies and sustainable practices. These factors are anticipated to drive the carbon credits market forecast in the upcoming years.

An increase in the number of public and private organizations that help in achieving environmental sustainability by trading carbon credits is anticipated to boost the market demand during the forecast period.

An international framework for trading in greenhouse gas emission reductions was established by IETA. Leading international corporations from every phase of the carbon trading cycle are currently members of International Emissions Trading Association (IETA). The organization is a pioneer in advancing market-based approaches to combating climate change and offers reliable data on market activity and the trading of greenhouse gas emissions.

By type, it is classified into regulatory and voluntary. By system, it is classified into cap-and-trade and baseline-and-credit. By end-use industry, it is classified into aviation, energy, industrial, petrochemical, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Markets for carbon credits are monetary structures that permit the purchase and sale of carbon credits. A certain number of greenhouse gas (GHG) emissions are represented by carbon credits, which can be offset or reduced through a variety of climate change mitigation efforts. These factors are intended to encourage businesses, organizations, and other people to cut their carbon emissions and support the primary objective of lowering greenhouse gas emissions globally, which is further contributing to the carbon credits market growth in the upcoming years.

Some of the disadvantages of carbon credit can be subject to significant price volatility, influenced by factors such as policy changes, market speculation, and economic conditions. This volatility can create uncertainty for market participants, making it challenging to plan and implement long-term emission reduction strategies. This is one of the major factors predicted to hamper the carbon credits market growth during the forecast period.

Source: https://www.alliedmarketresearch.com/carbon-credits-market-A107126 

Previous articleBest Power Equipments etches its mark at the Saudi Cloud
Next articleThe Rise of Environmental Technology: Innovations and Solutions for a Sustainable Future

LEAVE A REPLY

Please enter your comment!
Please enter your name here