Global Carbon Credit Market 2023: Sector to Reach $2.68 Trillion by 2028 at a CAGR of 18.23%
- Media Manager
- Apr 18, 2023
- 1 min read
Yahoo! Finance - Research and Markets
Published: April 19, 2023, at 3:48 AM PDT
The global carbon credit market traded value was US$978.56 billion in 2022. The market is expected to reach US$2.68 trillion by 2028. at a CAGR of 18.23% during the forecast period of 2023-2028.
There is increasing regulatory and stakeholder pressure on global corporations to lower emissions. These trends are driving demand for carbon credits, giving rise to two sets of markets, which could grow meaningfully in the coming decades. At present, the overall carbon market is mainly characterized by the degree of regulation, namely the regulated compliance carbon market (CCM) and the unregulated voluntary carbon market (VCM).
The CCM is more mature and has historically generated stronger mitigation actions and incentives to decarbonize the economy than the VCM. CCM most commonly takes the form of an Emissions Trading System (ETS), which is also known as a cap and trade program, the largest of which is the European Union ETS. Article 6 of the Paris Agreement also contemplates an international market that allows for voluntary cooperation between two or more countries on emissions reductions.
