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 carbon offsets market is gaining momentum as nations, corporations, and individuals commit to reducing greenhouse gas (GHG) emissions and achieving net-zero targets. Carbon offsets are tradable certificates that represent the reduction or removal of one metric ton of CO₂ (or its equivalent) from the atmosphere. They are generated through projects such as reforestation, renewable energy deployment, methane capture, and energy efficiency initiatives.
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Segmentation Analysis:
By Type: The market is segmented into compliance and voluntary markets. The compliance segment dominated in 2023, driven by government regulations under the Paris Agreement and rising greenhouse gas emissions. Companies are increasingly investing in carbon offset projects to meet emission limits and generate revenue through carbon credit trading.
By Project Type: The market is divided into avoidance/reduction and removal/sequestration projects. Avoidance/reduction projects held the largest share in 2023, supported by growing initiatives across Europe, Asia Pacific, and North America to curb carbon emissions and protect the ozone layer.
By End-user: Key end-users include renewable energy, forestry & land, industrial, household & appliances, transportation, and others. Renewable energy led the market in 2023 due to rising CO2e emissions and their health impacts. Investments in hydro and wind projects are reducing dependence on fossil fuels, driving this segment’s growth.
The market is primarily driven by global climate agreements such as the Paris Accord, which require countries to reduce emissions. Companies are adopting carbon offsets to meet corporate net-zero and ESG commitments, which also strengthens their brand image. Rising CO₂ emissions from industrial activities and energy consumption have increased the urgency for emission mitigation solutions. Additionally, the expansion of renewable energy projects has boosted the supply of carbon credits, making them more accessible to businesses and individuals.
Competitors Landscape:
The realm of Carbon Offsets Market is rife with cutthroat competition and fragmentation, a result of the considerable presence of both global conglomerates and domestic contenders. Industry insiders situated in diverse geographical regions are formulating and executing effective strategies to exploit unexplored opportunities and extend their business outreach. In this highly aggressive environment, prominent players are aggressively pursuing tactics to enhance their market share through various channels.
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.)
Key Industry Development:
May 2024: 3Degrees introduced the Smart Launch Solution to help organizations meet Scope 3 emission targets. It combines carbon credits, Renewable Natural Gas (RNG) certificates, and program management tools for efficient implementation.
April 2024: South Pole and GenZero launched the Asia Centre of Carbon Excellence (ACCE) in Singapore to scale high-impact carbon credit projects and accelerate climate action in Asia.
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