Carbon Credit Market Size, Share, Trends, Industry Analysis Report: By Type (Compliance and Voluntary), Project Type, End Use, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Market Forecast, 2025-2034
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AirCarbon Pte. Ltd.
ALLCOT AG
CBL Markets(Xpansiv)
Climate Impact X Pte. Ltd.
EcoAct(Atos)
EEX(European Energy Exchange AG)
EKI Energy Services Ltd.
First Climate(ENGIE)
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The global carbon credit market size is expected to reach USD 10,552.12 billion by 2034, according to a new study by Polaris Market Research. The report "Carbon Credit Market Size, Share, Trends, Industry Analysis Report: By Type (Compliance and Voluntary), Project Type, End Use, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Market Forecast, 2025-2034" gives a detailed insight into current market dynamics and provides analysis on future market growth.
The carbon credit market is a system designed to help mitigate the effects of climate change by creating a financial incentive for reducing greenhouse gas emissions. At its core, a carbon credit represents the avoidance or removal of one metric ton of carbon dioxide equivalent from the atmosphere. These credits can be traded, allowing entities that emit more than their allocated amount to purchase credits from those that emit less or actively remove carbon. This market operates under two main frameworks: compliance markets, which are established by mandatory regulations at national or regional levels, and voluntary markets, where organizations and individuals choose to offset their emissions for various reasons, including corporate responsibility and sustainability goals.
The carbon credit market growth is driven by increasing global awareness of climate change and the urgent need for action. Several factors contribute to its dynamism, including the rising adoption of net-zero targets by governments and corporations, which propels the demand for carbon credits. Advancements in carbon capture and storage technologies, as well as nature-based solutions for carbon sequestration, are expanding the supply of carbon credits. Furthermore, international agreements and the development of more standardized frameworks are enhancing the credibility and efficiency of carbon trading. This growing market plays a crucial role in channeling finance toward projects that reduce or remove greenhouse gases, contributing to global efforts in combating climate change.
Carbon Credit Market Report Highlights:
By type, the compliance market dominates the carbon credit market share globally, primarily due to the established and large-scale government-mandated emissions trading schemes, such as the European Union Emissions Trading System (EU ETS), which necessitate participation from significant industrial sectors and emitters within those regulated jurisdictions.
By project type, the avoidance/reduction projects segment accounts for a larger market share, a result of their longer history and the well-established methodologies for quantifying and verifying emission reductions, particularly in sectors such as renewable energy and avoided deforestation.
By end use, the industrial segment represents the largest share of the market, primarily driven by the substantial emission volumes associated with various industrial processes and the regulatory pressures often targeting these heavy-emitting sectors to manage their carbon footprints through participation in carbon markets.
By region, Europe holds the largest share of the carbon credit market revenue. The Asia Pacific market is demonstrating the highest growth rate.
A few major participants actively operating in the market include European Energy Exchange AG; Intercontinental Exchange, Inc.; CBL Markets (Xpansiv); AirCarbon Pte. Ltd.; Climate Impact X Pte. Ltd.; South Pole Carbon Asset Development Ltd.; Verra; Gold Standard (administered by South Pole); EcoAct (Atos); First Climate (ENGIE); ALLCOT AG; and EKI Energy Services Ltd.
Polaris Market Research has segmented the market report on the basis of type, project type, end use, and region:
By Type Outlook (Revenue-USD Billion, 2020-2034)
Compliance
Voluntary
By Project Type Outlook (Revenue-USD Billion, 2020-2034)
Avoidance/Reduction Projects
Removal/Sequestration Projects
By End Use Outlook (Revenue-USD Billion, 2020-2034)
Power
Energy
Aviation
Transportation
Buildings
Industrial
Others
By Regional Outlook (Revenue-USD Billion, 2020-2034)
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Netherlands
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Malaysia
South Korea
Indonesia
Australia
Vietnam
Rest of Asia Pacific
Middle East & Africa
Saudi Arabia
UAE
Israel
South Africa
Rest of Middle East & Africa
Latin America
Mexico
Brazil
Argentina
Rest of Latin America
Table of Contents
1. Introduction
1.1. Report Description
1.1.1. Objectives of the Study
1.1.2. Market Scope
1.1.3. Assumptions
1.2. Stakeholders
2. Executive Summary
2.1. Market Highlights
3. Research Methodology
3.1. Overview
3.1.1. Data Mining
3.2. Data Source
3.2.1. Primary Source
3.2.2. Secondary Source
4. Global Carbon Credit Market Insights
4.1. Carbon Credit Market - Market Snapshot
4.2. Carbon Credit Market Dynamics
4.2.1. Drivers and Opportunities
4.2.1.1. Government Policies and Regulatory Frameworks
4.2.1.2. Increasing Net-Zero Commitments by Corporations
4.2.2. Restraints and Challenges
4.2.2.1. Lack of standardization and transparency
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power of Suppliers (Moderate)
4.3.2. Threats of New Entrants: (Low)
4.3.3. Bargaining Power of Buyers (Moderate)
4.3.4. Threat of Substitute (Moderate)
4.3.5. Rivalry among existing firms (High)
4.4. PESTEL Analysis
4.5. Carbon Credit Market Application Trends
4.6. Value Chain Analysis
4.7. COVID-19 Impact Analysis
5. Global Carbon Credit Market, by Type
5.1. Key Findings
5.2. Introduction
5.2.1. Global Carbon Credit Market, by Type, 2020-2034 (USD Billion)
5.3. Compliance
5.3.1. Global Carbon Credit Market, by Compliance, by Region, 2020-2034 (USD Billion)
5.4. Voluntary
5.4.1. Global Carbon Credit Market, by Voluntary, by Region, 2020-2034 (USD Billion)
6. Global Carbon Credit Market, by Project Type
6.1. Key Findings
6.2. Introduction
6.2.1. Global Carbon Credit Market, by Project Type, 2020-2034 (USD Billion)
6.3. Avoidance / Reduction Projects
6.3.1. Global Carbon Credit Market, by Avoidance / Reduction Projects, by Region, 2020-2034 (USD Billion)
6.4. Removal / Sequestration Projects
6.4.1. Global Carbon Credit Market, by Removal / Sequestration Projects, by Region, 2020-2034 (USD Billion)
7. Global Carbon Credit Market, by End Use
7.1. Key Findings
7.2. Introduction
7.2.1. Global Carbon Credit Market, by End Use, 2020-2034 (USD Billion)
7.3. Power
7.3.1. Global Carbon Credit Market, by Power, by Region, 2020-2034 (USD Billion)
7.4. Energy
7.4.1. Global Carbon Credit Market, by Energy, by Region, 2020-2034 (USD Billion)
7.5. Aviation
7.5.1. Global Carbon Credit Market, by Aviation, by Region, 2020-2034 (USD Billion)
7.6. Transportation
7.6.1. Global Carbon Credit Market, by Transportation, by Region, 2020-2034 (USD Billion)
7.7. Buildings
7.7.1. Global Carbon Credit Market, by Buildings, by Region, 2020-2034 (USD Billion)
7.8. Industrial
7.8.1. Global Carbon Credit Market, by Industrial, by Region, 2020-2034 (USD Billion)
7.9. Others
7.9.1. Global Carbon Credit Market, by Others, by Region, 2020-2034 (USD Billion)
8. Global Carbon Credit Market, by Geography
8.1. Key Findings
8.2. Introduction
8.2.1. Carbon Credit Market Assessment, By Geography, 2020-2034 (USD Billion)
8.3. Carbon Credit Market - North America
8.3.1. North America: Carbon Credit Market, by Type, 2020-2034 (USD Billion)
8.3.2. North America: Carbon Credit Market, by Project Type, 2020-2034 (USD Billion)
8.3.3. North America: Carbon Credit Market, by End Use, 2020-2034 (USD Billion)
8.3.4. Carbon Credit Market - U.S.
8.3.4.1. U.S.: Carbon Credit Market, by Type, 2020-2034 (USD Billion)