Market Overview:
The global carbon offsets market size stood at USD 938.75 billion in 2022. The market is set to surge from USD 1,067.74 billion in 2023 to USD 2,549.42 billion by 2030, exhibiting a CAGR of 13.1% over the analysis period.
Carbon offsetting involves numerous processes, such as carbon sequestration and carbon capture technologies. Carbon offsets are being favored by the increasing investments by traders and end-user industries in the carbon credit sector.
Fortune Business Insights™ provides this information in its research report, titled “Carbon Offsets Market, 2023-2030”.
Segmentation:
Compliance Market Accounted for Leading Share Due to Rising Investments in Various Projects
Based on type, the market is segmented into voluntary market and compliance market. The compliance market segment held a prominent share of the market in 2022. The increasing investments by companies in various carbon offset projects in light of carbon credits offered by the government are set to drive segment growth over the coming years.
Avoidance/Reduction Projects Segment Registered Major Share Owing to Rise in Number of Projects in Europe and other Regions
By project type, the market is categorized into removal/sequestration projects and avoidance/reduction projects. The avoidance/reduction projects segment recorded a key market share in 2022 owing to an upsurge in carbon dioxide avoidance projects in North America, Asia Pacific, and Europe.
Renewable Energy Segment Recorded Major Share Owing to Benefit of Emission Reduction Offered by these Projects
By end-user, the market is divided into industrial, forestry and land, renewable energy, house hold and appliances, transportation, and others. The renewable energy segment held a major share in the market in 2022. There has been a growing demand for the removal of carbon from the environment. The launch of renewable energy projects helps decrease carbon emissions, which is a key factor favoring segment growth.
By geography, the market for carbon offsets has been studied across Europe, Asia Pacific, North America, and the rest of the world.
Source: https://www.fortunebusinessinsights.com/carbon-offsets-market-109080
Report Coverage:
The report presents an overview of the pivotal trends in the market. It also gives an account of the major factors touted to boost the global business scenario over the coming years. The major steps deployed by leading companies to strengthen their market have also been provided in the report.
Drivers and Restraints:
Market Value to Rise with Escalating Adoption of Carbon Offsets in Voluntary Projects
The growing participation of small emitters of greenhouse gases in carbon neutralization projects is driving the carbon offsets market growth. These small volunteers receive carbon credit for the neutralization of each ton of carbon. The credits can be used for trading on stock exchange platforms, which is one of the major factors responsible for creating revenue maximization opportunities for existing and new volunteers.
Nonetheless, the industry growth may be hindered due to some countries' less involvement in carbon offsetting.
Regional Insights:
Europe Accounted for Key Share Due to Strong Presence in Carbon Credit Trading
Europe carbon offsets market share stood at a key position in the global market in 2022. The region exhibits a robust presence in carbon credit trading, which is one of the pivotal factors influencing regional dominance.
Asia Pacific is anticipated to expand, considering a rise in the number of carbon capture projects over the past few years.
Competitive Landscape:
Companies Focus on Several Initiatives to Outpace their Competitors
Key industry players are centered on adopting numerous steps to strengthen their market positions and gaining an edge over competitors. The formation of joint ventures and partnership agreements are some of the major steps adopted by leading companies. In addition, some companies are keen to establish robust distribution channels in the carbon offsets market.
Key Industry Development:
August 2023 – The Global Carbon Council in Doha plans to list its carbon offset programs on the MENA exchanges platform, aiming to attract more investors and increase active carbon emission projects in the Middle East.
List of Key Players Mentioned in the Report:
Carbon Credit Capital (U.S.)
NativeEnergy (U.S.)
Green Mountain Energy Company (U.S.)
EcoAct (U.K.)
GreenTrees (U.S.)
Allcot Group (Switzerland)
3Degrees (U.S.)
WayCarbon (Brazil)
South Pole (Switzerland)
TerraPass (U.S.)