Carbon Offset/Carbon Credit Market Size Projected to Reach $1,602.7 Billion by 2028
- Media Manager
- Apr 17, 2023
- 2 min read
Yahoo! Finance - MarketsandMarkets Research Pvt. Ltd.
Published: Chicago, April 18, 2023 (GLOBE NEWSWIRE)
The global Carbon Offset/Carbon Credit Market is expected to grow from USD 414.8 billion in 2023 to USD 1,602.7 billion by 2028, at a CAGR of 31.0% according to a new report by MarketsandMarkets™. The voluntary carbon market continues to play a critical role in that transition by helping to channel funding into projects that reduce carbon emissions or remove carbon from the atmosphere. Since, the need to curb global warming has significantly increased, the carbon offsetting has become fundamental to achieving net-zero greenhouse-gas emissions. Increasing investments in carbon capture technologies and solutions along with the rise in projects that are helping communities and creating social impact, is expected to drive the market.
As the world moves toward net zero targets, companies are putting considerable effort and capital into decarbonization. Climate change usually requires a complete economic shift. The demand for carbon credits will significantly grow in the coming decades as the companies are focused on net zero targets and are working toward reducing carbon emissions. A carbon credit represents the right to emit greenhouse gases equivalent to one ton of carbon dioxide. Several businesses are now adopting this technique of partially using carbon credits, which is benefitting them significantly. They are getting involved in projects and activities that are helping them generate offsets. They use as many credits as they want according to the limit set for a project and if they have a few left, they are used later for another project. This not only helps them save a significant amount of money, which can aid them in investing in more such credits in the future when required. Hence, these factors help in driving the market for carbon offset/credits.
Carbon Offset/Carbon Credit Market Dynamics:
Drivers:
Growing need to reduce global warming and carbon emissions
Rise in partial use of carbon credits by companies
Increasing investments in carbon capture technologies
Restraints:
Restoration of carbon emissions from one location to another
Opportunities:
Increasing number of regulatory requirements and industry association standards
Rising financial support to local communities
Challenges:
Fluctuating prices of carbon credits
