Latest News- Carbon Credit Market: Power is expected to lead the End-user segment during 2025-2029

The Carbon Credit Market is being driven by Rising carbon emissions in earth atmosphere

The Carbon Credit Market is expected to grow at a CAGR of 32.1% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 1966.3 billion. The carbon credit market is witnessing a substantial increase in investment and strategic collaborations, fueled by the imperative to mitigate climate change and attain global net-zero emissions targets. Corporations and governments are actively pursuing measures to decrease their carbon footprints, leading to a surge in demand for carbon credits. A primary catalyst for this growth is the growing appreciation of the significance of natural climate solutions. Projects such as afforestation, reforestation, forest conservation, and carbon capture and storage are receiving substantial investments. These nature-based initiatives not only contribute to carbon emission reduction but also offer additional advantages, including biodiversity preservation and the creation of local employment opportunities. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• End-user
  • Power
  • Energy
  • Transportation
  • Industrial
  • Others
• Type
  • Compliance
  • Voluntary
• Geography
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • Asia
    • China
  • North America
  • Rest of World (ROW)

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rising carbon emissions in earth atmosphere
• Increase in adoption of net-zero emission targets
• Growing demand for natural climate solutions

However, the market also witnesses some limitations, which are as follows:

• Fluctuating prices of carbon credits
• Insufficient governance in carbon credit
• No standard measure of quality of carbon credits

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Market Scope in Carbon Credit Market Research Report

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Research Analysis Overview

The Carbon Credit Market refers to the trading of Carbon Credits, which represent the right to emit a specific amount of carbon dioxide or equivalent greenhouse gases. This market includes the Voluntary Carbon Market where individuals and companies buy Carbon Offsets to achieve Net-Zero Emissions. Forestry projects, which offer Carbon Emission Reduction through Carbon Storage, are a significant part of this market. However, concerns over Leakage of Offsets, where emissions are reduced in one place but increase elsewhere, must be addressed for effective Carbon Credit Market operations.

Market Research Overview

The global carbon credit market, a segment of the environmental and facilities services industry, is experiencing significant growth due to increasing corporate commitments towards achieving net-zero greenhouse gas emissions. The voluntary carbon market, where companies buy carbon credits to offset their own emissions, is a key driver of this market's expansion. However, it's essential to address potential challenges, such as the leakage of offsets, which refers to the risk of emissions reduction in one place leading to an increase in emissions elsewhere. To mitigate this risk, stringent certification standards and transparent reporting mechanisms are crucial. The market's growth is further fueled by the global trend towards sustainability and environmental consciousness, as more businesses seek to reduce their carbon footprint and enhance their corporate social responsibility.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/