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The Compliance Offset Global Landscape | Insight Report | April 2025

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    Report

  • April 2025
  • Region: Global
  • cKinetics
  • ID: 6078278

This report provides an in-depth analysis of carbon offset usage across global compliance markets, highlighting key regulatory frameworks, market dynamics, and investment opportunities. It explores the role of offsets in cost containment mechanisms, emission reduction strategies, and climate finance, while examining the evolving regulatory landscape in major markets such as the EU, California, China, Japan, South Korea, and others.

The report also contrasts compliance markets with voluntary carbon markets (VCMs), addressing differences in governance, pricing, and market access. Key findings suggest that compliance markets offer stable pricing and higher-quality credits, presenting valuable opportunities for developers and investors.

Strategic recommendations emphasize diversification, investing in high-integrity projects, and staying aligned with evolving regulatory standards to mitigate risks and capitalize on emerging opportunities. With carbon markets advancing globally, compliance offsets have become a vital tool for emissions reduction, enabling industries to meet their regulatory obligations while supporting the transition to a low-carbon economy. The report examines how major compliance markets, including Australia, California, China, Singapore, Japan, South Korea, Canada, and more besides, are utilizing offsets to drive climate action and mitigate emissions.

The findings highlight key trends such as the increasing demand for high-quality offsets, regulation shifting toward national registries, and the role of international partnerships to facilitate effective market entry.

Table of Contents


Executive SummaryCompliance Offsets- Key Terms & Examples
Global Compliance Markets
  • European Union (EU) ETS & C???
  • United States
  • China ETS & CCER
  • Japan GX-ETS & J-Credit System
  • South Korea K-ETS
  • Singapore Carbon Market
  • Australia (Safeguard Mechanism & ACCUs)
  • Canada (Federal OBPS & Provincial Systems)
  • South Africa Carbon Tax and Offsets
  • CORSIA
  • Other Emerging Markets (India, Brazil, etc.)
Comparison with Voluntary Carbon Markets (VCM)
  • Offset Standards and Governance
  • Regulatory vs. Market-driven demand
  • Price Levels and Variability
  • Market Access and Participants
  • Standards and Offset Quality Oversight
  • Liquidity and Tradability
  • Crediting periods and project life
  • Claims and Usage
  • Integration and Convergence
  • Market Trends
Investment Opportunities & Regulatory Risks
  • Investment Opportunities
  • Regulatory Risks and Market Stability
  • Recommendations for Stakeholders
ConclusionReferencesAbout the publisher
List of Figures
Figure 1: Annual CDM Retirements
Figure 2: California Carbon Offset Issuances by Protocol
Figure 3: Share of CCO Issuances by DEBs/Non-DEBs
Figure 4: CCO Retirements by Compliance Period
Figure 5: Average Golden CCO Price by DEBs
Figure 6: China CCER Traded Volume and Price/Unit (2025)
Figure 7: Singapore Carbon Tax (USD)
Figure 8: ACCU Cancellations by Demand Source
Figure 9: ACCU Price/Unit (AUD)
Figure 10: BC Offset Registry Retirement Volume and Price/Ton (CAD)
Figure 11: CORSIA Pilot Phase Emissions vs Baseline
Figure 12: Forecasted Range of Demand from CORSIA
Figure 13: Investor Opportunity Ratings