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

Voluntary Carbon Offsets Market Size And Forecast

Voluntary Carbon Offsets Market size was valued at USD 340 Million in 2021 and is projected to reach USD 922 Million by 2030, growing at a CAGR of 11.7% from 2022 to 2030. Rising participation of Private investors, governments, non-governmental organizations, and corporations in the Voluntary Carbon Offsets Market driving the growth of the market. Because of its effectiveness in environmental protection and economic empowerment, voluntary carbon offsets are regarded as one of the greatest solutions to the global problem of climate change that led to market expansion. The Global Voluntary Carbon Offsets 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.

Global Voluntary Carbon Offsets Market Definition

A carbon offset refers to the units earned by companies that have initiated a greenhouse gas reduction project. One offset credit is given for every ton of greenhouse gas that is reduced, stored, or avoided, and it is issued by a board or government authority. The offset is subsequently sold to an investor, government, or non-governmental organization (NGO) to offset or invest in their emissions. Carbon offsets are often measured in tons of greenhouse gases, which include Carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons, and perfluorocarbons.

The various types of carbon offsetting may include the Capture of greenhouse gases for use or destruction, Reduction of greenhouse gases by reducing the amount of fuel or electricity needed to perform various activities, Capture and storage of greenhouse gases, reduction of carbon emissions by moving from fossils fuels to renewable sources of energy such as solar and wind energy Offsetting is the way for businesses and individuals to take responsibility for their emissions now. The sale of carbon credits does this by financing sustainable development, often in countries that need it most, and by facilitating a measured and verified decrease in carbon emissions elsewhere.

There are a number of ways that these projects achieve these reductions, and it is extremely important to us that they also deliver additional and measured social and environmental value to the communities in which they operate. As a global society, we need to implement multiple approaches to tackling the climate emergency. This involves counteracting deforestation, supporting reforestation, and financing renewable technologies and the infrastructure needed to expand their reach. Because of its success in environmental protection and economic empowerment, the Voluntary Carbon Offsets Market is promoted as one of the greatest solutions to the global challenge of climate change.

Global Voluntary Carbon Offsets Market Overview

Rising participation of Private investors, governments, non-governmental organizations, and corporations in the Voluntary Carbon Offsets Market driving the growth of the market. Private firms that buy carbon offsets for resale or investment make up the largest group of purchasers. In the Voluntary Carbon Offsets Market, there are a variety of participants. Consumers who buy offsets from providers, providers (domestic and international) of various types of offsets, suppliers (universities, colleges, governments, and non-governmental organizations), and third-party verifiers and developers of quality assurance programs are the main participants.

Carbon emitters can buy carbon credits emitted by initiatives aimed at removing or reducing GHG from the atmosphere through the Voluntary Carbon Offsets Market, which allows them to offset their unavoidable emissions. A company or an individual can utilize each credit to compensate for the emission of one ton of CO2 or comparable gases, which corresponds to one metric ton of CO2 or equivalent gases reduced, avoided, or removed. A credit becomes an offset when it is utilized for this purpose. It has been put to a retired credits or retirements register and is no longer tradable. While compliance markets are currently limited to specific regions, voluntary carbon credits are far more versatile, as they are not constrained by geographical or political limits.

They also have the potential to be accessed by all sectors of the economy, rather than just a select few. Because of its effectiveness in environmental protection and economic empowerment, Voluntary Carbon Offsets Markets are regarded as one of the greatest solutions to the global problem of climate change that led to market expansion. Some of the advantages of voluntary carbon offsets are as a Source of experimentation and innovation, Operating in harmony with the compliance market, Offering a platform to engage corporate goodwill, Allowing expansion of the number of participants, and Allowing the reduction of greenhouse gas emissions without compromising equity.

Global Voluntary Carbon Offsets Market Segmentation Analysis

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

Voluntary Carbon Offsets Market, By Product

• Industrial
• Energy Industry
• Household
• Others

Based on Product, The market is segmented into Industrial, Energy Industry, Household, and Others. The Industrial segment dominates this industry and is projected to maintain its dominance as the global carbon credit score marketplace promises to emerge as a significant source of funding for the global improvement program.

Voluntary Carbon Offsets Market, By Application

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

Based on Application, The market is segmented into REDD Carbon Offset, Landfill Methane Projects, Renewable Energy, and Others. The Landfill Methane Projects have the highest share and are expected to maintain their position over the forecast period. Reducing Emissions from Deforestation and Forest Degradation (REDD) is an acronym that stands for Reducing Emissions from Deforestation and Forest Degradation. REDD is a concept that has evolved in UN climate talks as a means of reducing large-scale forest loss and associated CO2 emissions. REDD has developed over time to encompass the prevention of forest degradation, which is a precursor to deforestation. REDD is an UN-negotiated mechanism that provides financial incentives to developing nations to reduce emissions from deforestation and forest degradation, conserve and enhance forest carbon reserves, and manage forests sustainably.

Voluntary Carbon Offsets Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world
• On the basis of Regional Analysis, The Global Voluntary Carbon Offsets Market is classified into North America, Europe, Asia Pacific, and the Rest of the world.

Key Players

• The "Global Voluntary Carbon Offsets Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are
• Bioassets, Aera Group, Green Trees, CBEEX, Carbon Clear, South Pole Group, Terrapass, Biofilica, 3Degrees, Renewable Choice, WayCarbon, NativeEnergy, Guangzhou Greenstone, Carbon Credit Capital, Allcot Group, 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

• April 2022 - Gojek has joined a new carbon credit program that compensates fleets of electric vehicles and charging station operators. The business has entered into an agreement with CRX CarbonBank, a subsidiary of Singapore-based carbon consultant CRX, which is led by EVA.
• March 2022 - Climate Impact X (CIX), a Singapore-based carbon exchange, has established a digital platform that allows businesses to buy and sell carbon credits.
• March 2022 - Santander purchased an 80 percent stake in WayCarbon. This will strengthen Santander's own sustainable services to the bank's clients in terms of the energy transition.