The global voluntary carbon credit market is expected to grow from USD 1.6 billion in the current year to USD 47.5 billion, at a CAGR of 40% during the forecast period.
Additionally, by engaging in voluntary carbon offset initiatives, the end users in this market aid in lowering greenhouse gas emissions and provide financial backing for projects that enhance biodiversity, environmental resilience, and sustainable development. Voluntary carbon credits serve as both an environmental catalyst and an economic driver, fostering innovation and generating new business prospects. With the growing integration of environmental, social, and governance objectives into business strategies, it is expected that the need for carbon credits will rise.
As both businesses and government agencies / organizations pursue ambitious climate goals, the voluntary carbon credit market will play an essential role in enabling a global transition to a low-carbon economy. Moreover, the increasing corporate commitment to net zero emissions targets is anticipated to drive significant growth in the market, in the coming decade.
This is because forest management enhances the absorption of emissions by regulating deforestation and forest degradation. Moreover, forestry and land management initiatives help reduce the effects of climate change and the decline of biodiversity.
GLOBAL VOLUNTARY CARBON CREDIT MARKET: GROWTH AND TRENDS
Carbon credits signify a decrease or elimination of greenhouse gases in the atmosphere achieved through several climate initiatives. These credits are acquired either to meet compliance obligations or are purchased on a voluntary basis. The carbon reduction initiatives benefit the market by stakeholders either willingly eliminate or prevent emissions to lessen their environmental impact. This market has become an essential tool for tackling worldwide issues related to climate change. In contrast to compliance markets that are influenced by government regulations and cap-and-trade systems, the voluntary carbon credit sector functions on a non-mandatory principle, enabling companies, individuals, and organizations to voluntarily compensate for their carbon emissions. In 2021, the market reached a peak with more than USD 2 billion in revenue from trading voluntary carbon credits. This expansion is driven by continuous initiatives to decrease carbon emissions and transition towards sustainability in both public and private sectors. To offer different kinds of carbon credits, the project developers engage in a diverse range of efforts, such as afforestation, blue carbon, clean cooking, clean water, forest preservation, reforestation, land safeguarding, and renewable energy projects.Additionally, by engaging in voluntary carbon offset initiatives, the end users in this market aid in lowering greenhouse gas emissions and provide financial backing for projects that enhance biodiversity, environmental resilience, and sustainable development. Voluntary carbon credits serve as both an environmental catalyst and an economic driver, fostering innovation and generating new business prospects. With the growing integration of environmental, social, and governance objectives into business strategies, it is expected that the need for carbon credits will rise.
As both businesses and government agencies / organizations pursue ambitious climate goals, the voluntary carbon credit market will play an essential role in enabling a global transition to a low-carbon economy. Moreover, the increasing corporate commitment to net zero emissions targets is anticipated to drive significant growth in the market, in the coming decade.
GLOBAL VOLUNTARY CARBON CREDIT MARKET: KEY INSIGHTS
The report delves into the current state of voluntary carbon credit market and identifies potential growth opportunities within industry. Some key findings from the report include:
- Voluntary carbon credit providers are dedicated to addressing climate change issues by offering carbon credits generated through a variety of projects.
- More than 90% of the players provide carbon credits through nature-based solution initiatives; of these, nearly 70% of the credits are generated via forest conservation projects.
- The piqued interest towards sustainable practices and increasing concerns related to climate change drives the market for voluntary carbon credits, positioning it for significant growth in the foreseeable future.
- Currently, the global voluntary carbon market size is estimated to be worth USD 1.6 billion and is anticipated to grow at a CAGR of 40% over the next ten years.
- The detailed market forecast analysis reveals the historical data (since 2020) and the overall opportunity in the current year and the next 10 years (till 2035).
GLOBAL VOLUNTARY CARBON CREDIT MARKET: KEY SEGMENTS
Renewable Energy Projects Occupies a Relatively Higher Voluntary Carbon Credit Market Share
The global voluntary carbon credit market is categorized into different projects, such as renewable energy projects, energy efficiency projects, forestry and land use projects, methane capture and destruction projects and other projects. Currently, the renewable energy projects occupy a relatively higher market share (more than 30%); however, this scenario is likely to change in the upcoming future and the forestry and land use projects segment and is expected to witness substantial growth during the forecast period.This is because forest management enhances the absorption of emissions by regulating deforestation and forest degradation. Moreover, forestry and land management initiatives help reduce the effects of climate change and the decline of biodiversity.
Carbon Removal Segment Is Expected to Grow at a Higher CAGR
The global market is segmented across various types of transactions, such as carbon removal, carbon reduction and mixed transactions. Presently, the mixed transactions segment occupies the highest voluntary carbon credit market share (more than 45%), and this trend is unlikely to change over the next decade. However, the carbon removal segment is expected to grow at a relatively higher pace due to several reasons, including heightened awareness concerning greenwashing and changes in regulatory guidelines.Industrial Sector Currently Occupies the Highest Voluntary Carbon Credit Market Share
This segment highlights the segmentation of global market across various application areas, such as industrial sector, household sector, energy sector, agriculture sector and other application areas. Among these application areas, the industrial sector segment currently occupies the highest voluntary carbon credit market share and is likely to stay dominant during the forecast period. This can be linked to the growing adoption of net zero emission initiatives by industry participants, fostering a flourishing market. Further, it is worth mentioning that the energy sector segment is expected to grow at a higher CAGR compared to other segments.Private Companies’ Segment Is Expected to Hold the Majority Market Share
In terms of end-users, the global voluntary carbon credit market is segmented across different types of end users, such as government agencies / organizations, non-profit organizations, private companies and individuals. Currently, private companies’ segment is expected to hold the majority (nearly 45%) of the market share, and this trend is unlikely to change in the future as well. Further, private companies’ segment is anticipated to grow at an annualized rate of ~40%, till 2035. This is a result of the growing use of voluntary carbon credit by private companies to counterbalance their carbon emissions, focusing on minimizing environmental impact and achieving their sustainability objectives.North America is Likely to Capture the Major Market Share
In terms of geography, the global market is segmented across North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. Currently North America is likely to capture the majority (over 30%) of the market share; however, in the upcoming decade the market for Europe is likely to capture majority of the market share. It is worth highlighting that during the forecast period till 2035, the voluntary carbon credit market share in Asia-Pacific is expected to grow at a relatively faster pace (CAGR of 42%) in comparison to other regions.Primary Research Overview
The opinions and insights presented in this study were influenced by discussions conducted with multiple stakeholders in this domain. The market report features detailed transcripts of interviews held with the following individuals:- Founder, Small Company, UAE
- Managing Director, Small Company, Poland
- Global Senior Director of Nature Based Solutions, Very Large Company, Switzerland
- Team Lead Sales International, Mid-sized Company, Germany
- Enterprise Innovation Lead, Small Company, UK
- International Business Development and Strategic Business Partnerships, Small Company, France
- Partnerships Coordinator, Small Company, Australia
Example Players in the Global Voluntary Carbon Credit Market
- 3Degrees
- Climate Impact Partners
- ClimateSeed
- Cool Effect
- Earthly
- Ecologi Impact Funds
- EKI Energy Services
- First Climate
- Green Wedge
- Greenfleet
- natureOffice
- Solaxy Group
- South Pole
- The Carbon Collective Company
GLOBAL VOLUNTARY CARBON CREDIT MARKET: RESEARCH COVERAGE
- Market Sizing and Opportunity Analysis: The report features an in-depth analysis of the global voluntary carbon credit market, focusing on key market segments, including [A] project, [B] type of transaction [C] application area, [D] end user and [H] geography.
- Market Landscape: A comprehensive evaluation of voluntary carbon credit project developers, considering various parameters, such as [A] type of credit, [B] nature-based solution credits, [C] health and livelihood credits, [D] sustainable infrastructure credits, and [E] end user and [F] year of their establishment, [B] company size, and [C] location of headquarters.
- Company Profiles: In-depth profiles of companies that are engaged in this domain, focusing on [A] company overview, [B] financial information (if available), [C] carbon credit portfolio, and [E] recent developments and an informed future outlook.
- Case Study: A detailed case study on voluntary carbon offset initiatives by pharma companies in this domain, highlighting the impact of these practices within the pharmaceutical industry.
- Market Impact Analysis: An in-depth analysis of the factors that can impact on the growth of the market. It also features identification and market analysis of [A] key drivers, [B] potential restraints, [C] emerging opportunities, and [D] existing challenges.
KEY QUESTIONS ANSWERED IN THIS REPORT
- How many companies are currently engaged in this market?
- Which are the leading companies in this market?
- What factors are likely to influence the evolution of this market?
- What is the current and future market size?
- What is the CAGR of this market?
- How is the current and future market opportunity likely to be distributed across key market segments?
REASONS TO BUY THIS REPORT
- The report provides a comprehensive market analysis, offering detailed revenue projections of the overall market and its specific sub-segments. This information is valuable to both established market leaders and emerging entrants.
- Stakeholders can leverage the report to gain a deeper understanding of the competitive dynamics within the market. By analyzing the competitive landscape, businesses can make informed decisions to optimize their market positioning and develop effective go-to-market strategies.
- The report offers stakeholders a comprehensive overview of the market, including key drivers, barriers, opportunities, and challenges. This information empowers stakeholders to stay abreast of market trends and make data-driven decisions to capitalize on growth prospects.
ADDITIONAL BENEFITS
- Complimentary Excel Data Packs for all Analytical Modules in the Report
- 15% Free Content Customization
- Detailed Report Walkthrough Session with the Research Team
- Free Update if the Report is 6+ Months Old
Table of Contents
SECTION I: REPORT OVERVIEWSECTION II: QUALITATIVE INSIGHTS5. EXECUTIVE SUMMARYSECTION III: MARKET OVERVIEWSECTION IV: COMPANY PROFILESSECTION V: MARKET TRENDSSECTION VI: MARKET FORECAST AND OPPORTUNITY ANALYSISSECTION VII: MARKET OPPORTUNITY ANALYSIS WITHIN GEOGRAPHICAL REGIONS**SECTION VIII: OTHER EXCLUSIVE INSIGHTS22. INSIGHTS FROM PRIMARY RESEARCH23. CONCLUDING INSIGHTS24. CUSTOMIZATION OPPORTUNITIES25. ROOTS SUBSCRIPTION SERVICES26. AUTHOR DETAILSSECTION IX: APPENDICES27. TABULATED DATA28. LIST OF COMPANIES AND ORGANIZATIONS
1. BACKGROUND
2. RESEARCH METHODOLOGY
3. MARKET DYNAMICS
4. MACRO-ECONOMIC INDICATORS
6. INTRODUCTION
7. COMPETITIVE LANDSCAPE
8. COMPANY PROFILES
9. CASE STUDY: IMPACT OF BIG PHARMA PLAYERS IN VOLUNTARY CARBON MARKET
10. MARKET IMPACT ANALYSIS: DRIVERS, RESTRAINTS, OPPORTUNITIES AND CHALLENGES
11. VOLUNTARY CARBON MARKET
12. VOLUNTARY CARBON MARKET, BY PROJECT
13. Voluntary Carbon MARKET, BY TYPE OF TRANSACTION
14. Voluntary Carbon MARKET, BY APPLICATION AREA
15. VOLUNTARY CARBON MARKET, BY END-USER
16. VOLUNTARY CARBON MARKET, BY GEOGRAPHICAL REGION
17. MARKET OPPORTUNITY ANALYSIS: NORTH AMERICA
18. MARKET OPPORTUNITY ANALYSIS: EUROPE
19. MARKET OPPORTUNITY ANALYSIS: ASIA-PACIFIC
20. MARKET OPPORTUNITY ANALYSIS: LATIN AMERICA
21. MARKET OPPORTUNITY ANALYSIS: MIDDLE EAST AND AFRICA
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- 3Degrees
- Climate Impact Partners
- ClimateSeed
- Cool Effect
- Earthly
- Ecologi Impact Funds
- EKI Energy Services
- First Climate
- Green Wedge
- Greenfleet
- natureOffice
- Solaxy Group
- South Pole
- The Carbon Collective Company
Methodology
LOADING...
