Global Voluntary Carbon Credit Trading Market Size By Product (Industrial, Household, Energy Industry), By Application (REDD Carbon Offset, Renewable Energy, Landfill Methane Projects), By Geographic Scope And Forecast

Voluntary Carbon Credit Trading Market Size And Forecast

Voluntary Carbon Credit Trading Market size is growing at a faster pace with substantial growth rates over the last few years and is estimated that the market will grow significantly in the forecasted period i.e. 2022 to 2030.

The increasing concern about climate change and global warming has made more companies aware of the need to stop or reduce climate change. This can be achieved by reducing greenhouse emissions and achieving the goal of being carbon neutral. The world's top 100 companies have one of their mission statements to be carbon neutral by 2050 or sooner. This concern about climate change has been the driver of the voluntary carbon credit trading market. However, some companies have re-estimated their timelines for carbon neutrality as they reduce or eliminate their carbon emissions as soon as they projected. Many companies find the use of carbon credit essential as they are unable to reduce their emissions by other means. The Global Voluntary Carbon Credit Trading Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

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Global Voluntary Carbon Credit Trading Market Definition

A carbon credit is a trade permit that allows the company to emit a certain amount of greenhouse gases or carbon dioxide. One credit permit allows one ton of emissions. Each company is allotted a set number of carbon credits that will allow them to pollute up to a particular level; if the carbon credits are not used, the corporation may sell or trade them to any other company. The carbon credits issued to the companies are monitored and reduced periodically. The benefit of reducing carbon emissions to the private companies is very significant as, firstly, they do not have to buy excess credit tokens. Furthermore, the unutilized carbon credits can be sold to other companies giving them the monetary benefit. Once the carbon credit is used, it is given the title of "retired" as it cannot be traded or used again. Companies have the option to participate in the voluntary carbon market as an individual entity or be a part of the industry-wide program.

Global Voluntary Carbon Credit Trading Market Overview

The rise in the number of companies working towards their goal of being carbon neutral is driving the global voluntary carbon credit trading market. The Institute of International Finance (IIF) has launched a new program to expand the voluntary carbon credit trading market. The benefit of the voluntary carbon credit trading market is the influx of private financers to sustainable, climate-focused projects that, without the presence of this market, would not have started. These projects provide many benefits to the environment, such as protection of biodiversity, reduction in pollution levels, and improvement of public health. Furthermore, due to the benefits of unutilized carbon credits, a greater number of companies invest in newer technologies that help in reducing carbon emissions and sustainable development.

The demand for carbon credits can significantly reduce efforts required by governments across the world to reduce carbon and greenhouse gas emissions. But it is mandatory that the world needs a voluntary carbon credit trading market that is transparent, easily verifiable, and accessible across the globe. One of the problems with the current market is the difficulty of finding out the fair price of carbon credit. Along with this, the uncertainty risk that the supplier takes by investing in a project without a fair estimation of the worth of carbon credits that the buyer will pay. The current estimation is that the market for voluntary carbon credits could see a jump by a factor of 15 by 2030, while this number is expected to increase by 100 by 2050.

Global Voluntary Carbon Credit Trading Market: Segmentation Analysis

The Global Voluntary Carbon Credit Trading Market is segmented on the basis of Product, Application, And Geography.

Voluntary Carbon Credit Trading Market, By Product

• Energy industry
• Household
• Industrial

Based on Product, the market is segmented into the energy industry, household, and industrial. The industrial segment is dominating the market and is expected to continue the same trend in coming years as well.

Voluntary Carbon Credit Trading Market, By Application

• REDD Carbon Offset
• Renewable Energy
• Landfill Methane Projects
• Others

Based on Application, the market is segmented into REDD carbon offset, renewable energy, landfill methane projects, and others. The landfill methane projects have the biggest market share and are expected to maintain their position in the course of the projected period.

Voluntary Carbon Credit Trading Market, By Geography

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East and Africa

Based on region, the market is segmented into Asia-Pacific, North America, Europe, Latin America, and Middle-East and Africa. Due to the introduction of new products in various regions, the market is anticipated to expand in the next years.

Key Players

• The "Global Voluntary Carbon Credit Trading Market" study report will provide valuable insight with an emphasis on the global market including some of the major players such as
• Carbon Clear, CBEEX, Bioassets, South Pole Group, Aera Group, Green Trees, WayCarbon, Carbon Credit Capital, Allcot Group, and Forest Carbon.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In April 2022 - Gojek signed a partnership with CRX CarbonBank, a subsidiary of Singapore-based carbon consultancy CRX, which is led by EVA.
• In March 2022 - Santander acquired an 80% stake in WayCarbon. This will strengthen Santander's sustainability solutions to the bank's clients regarding the transition to renewable energy.