Carbon Offset and Carbon Credit Trading Service Market: Current Analysis and Forecast (2024-2032)

Report Description

Carbon Offset and Carbon Credit Trading Service Market Size & Forecast

The Carbon Offset and Carbon Credit Trading Service market was valued at approximately USD 23.31 billion in 2023 and is expected to grow at a substantial CAGR of around 22.3% during the forecast period (2024-2032) owing to the reduction or removal of emissions of carbon dioxide or other greenhouse gases.

Carbon Offset and Carbon Credit Trading Service Market Analysis

Carbon offset service enables consumers and firms to balance their carbon footprints by paying for other carbon reduction programs including afforestation, energy from natural sources, and carbon capture plants. Environmental projects mean that for every CO2 emission, an equal amount is also invested in such projects to ‘balance’ out the emissions. Carbon credit trading is the process of selling and buying carbon credits, with one carbon credit equaling one ton of CO2 or equivalent the elimination of which has been facilitated. Some organizations can have extra credits after fulfilling the set standards on emissions and can sell them to other organizations that have broken the set laws on emissions thus forming a carbon credit market.

With the increasing climate concerns and global warming, worldwide. Around 21% of 2010 global greenhouse gas emissions from industries such as fossil fuels burned on-site at facilities for energy or emissions from chemical, metallurgical, and mineral transformation processes not associated with energy consumption and emissions from waste management activities. As per the UN-REDD Programme in 2024, Deforestation and forest degradation account for 11 percent of greenhouse gas (GHG) emissions, more than the entire global transportation sector and second only to the energy sector. The increasing government initiatives and programs about the reduction of greenhouse gas emissions and climate change, a well-established industrial sector, technological advancements and developments, and growth in the renewable energy sector are boosting the market growth. Furthermore, the volatile carbon prices in Europe are increasing the demand for carbon credit trading services within the region. For instance, on 8 March 2022, Santander acquired an 80% stake in WayCarbon to strengthen Santander’s sustainability solutions to the bank’s clients regarding the transition to renewable energy.

Carbon Offset and Carbon Credit Trading Service Market Trends

This section discusses the key market trends influencing the various segments of the carbon offset and carbon credit trading service market as identified by our research experts.

Industrial segment Transform Carbon Offset and Carbon Credit Trading Service Industry

The industrial sector has a high carbon footprint. To offset companies’ carbon footprint, industrial entities are allowed to fund emission reduction projects which may include adopting technologically enhanced energy-efficient technologies as well as practices. For instance, on 12 July 2023, as per the International Energy Agency, investment in clean energy reached a record USD 1.6 trillion in 2022, an increase of almost 15% from 2021, demonstrating continued confidence in energy transitions even in an uncertain economic climate. The effectiveness of these measures is that they not only minimize their carbon emission but also earn carbon credits. Further, through carbon credit trading industries can balance their remaining emissions by acquiring credits from other projects that have effectively reduced or captured carbon. As a result, it provides financial gain for industries to shift to cleaner technologies and invest in initiatives for a low-carbon economy and sustainable development.

North America has a significant growth in the market.

The North American market for carbon offset and carbon trading services is anticipating a large amount of growth because of factors that are increasing the viability of sustainable business. Carbon offset and trading services have therefore turned out to be a key factor in the realization of emission reductions and sustainability. Furthermore, the government is an effective motivator that exerts significant influence in the carbon offset and trading services market. The governments of all North American countries have put robust measures toward the environmental front, they include cap-and-trade systems, carbon taxes, and emission reduction targets. These regulations compel firms to undertake carbon offset projects or purchase carbon trading credits that cater to the emission reduction obligation. For instance, in August 2023 three US companies Rubicon Carbon Freepoint Commodities and Imperative Global formed a partnership for the development and financing of potential nature-based carbon offset projects worth USD 500 million which might produce over 100 million carbon credits.

Carbon Offset and Carbon Credit Trading Service Industry Overview

The Carbon Offset and Carbon Credit Trading Service market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Carbon Credit Capital, LLC., Terrapass, South Pole, 3Degrees, Native, ClimatePartner GmbH, ClimateTrade, AERA GROUP SAS, Allcot Group, Ecosphere+.

Carbon Offset and Carbon Credit Trading Service Market News

In July 2023, Manchester United, the renowned UK soccer club, announced its intentions to offset carbon emissions associated with air travel by players and staff during their pre-season tour in the USA. This corresponds to a total of 450 tons of carbon dioxide equivalent (CO2e), offset by investing in renewable wind energy.

On April 13, 2023, ClimateTrade, the world’s first blockchain-based climate solutions provider, acquired climate neutrality company TeamClimate to expand its global reach and improve its product portfolio.

In October 2020, AEROCOR announced a new partnership with Terrapass designed to reduce jet owners’ carbon footprint. Effective immediately, AEROCOR will acquire enough carbon offsets to neutralize the emissions for the first year of flying (roughly 120 flight hours) for all light turbine aircraft purchased or sold using their services.

Carbon Offset and Carbon Credit Trading Service Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global Carbon Offset and Carbon Credit Trading Service market can be customized further as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Carbon Offset and Carbon Credit Trading Service Market Analysis (2024-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global Carbon Offset and Carbon Credit Trading Service market were the three major steps undertaken to create and analyze the adoption of Carbon Offset and Carbon Credit Trading Service in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Carbon Offset and Carbon Credit Trading Service market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the Carbon Offset and Carbon Credit Trading Service market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Carbon Offset and Carbon Credit Trading Service market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as type, application, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Carbon Offset and Carbon Credit Trading Service market. Further, we conducted factor analysis using dependent and independent variables such as type, application, and regions of the carbon offset and carbon credit trading service market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the carbon offset and carbon credit trading service market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global carbon offset and carbon credit trading service market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

The industry’s market size, in terms of revenue (USD) and the adoption rate of the carbon offset and carbon credit trading service market across the major markets domestically

All percentage shares, splits, and breakdowns of market segments and sub-segments

Key players in the global carbon offset and carbon credit trading service market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global carbon offset and carbon credit trading service market. Data was split into several segments and sub-segments after studying various parameters and trends in the type, application, and regions of the global carbon offset and carbon credit trading service market.

The main objective of the Global Carbon Offset and Carbon Credit Trading Service Market Study

The current & future market trends of the global Carbon Offset and Carbon Credit Trading Service market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the Carbon Offset and Carbon Credit Trading Service market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of the type, application, and regions.
• Define and analyze the regulatory framework for the carbon offset and carbon credit trading service
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the Carbon Offset and Carbon Credit Trading Service market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of the Carbon Offset and Carbon Credit Trading Service market and the growth strategies adopted by the market players to sustain the fast-growing market.
• Deep dive regional level analysis of the industry

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