Carbon Credits Market Report 2025 (Global Edition)

Global Carbon Credits Market Report 2025 Market Size Split by Type (Regulatory, Voluntary), by System (Cap-and-Trade, Baseline-and-Credit), by End-use Industry (Aviation, Energy, Industrial, Petrochem...

Carbon Credits Market Report Description

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Carbon Credits Market Insights Video

Competitive Landscape of the Carbon Credits Market

The carbon credits market features a diverse competitive landscape with key players including multinational corporations, specialized carbon credit firms, and environmental NGOs. Major players like Microsoft and Google invest in both regulatory and voluntary carbon credits to meet sustainability goals. Companies such as Verra and Gold Standard dominate the certification of carbon credits. Market competition also involves innovative startups offering new technologies for emissions reduction and blockchain-based solutions for tracking credits. Regulatory pressures and growing corporate sustainability commitments drive competition, with firms vying to offer credible, verifiable credits and access emerging market opportunities.

In November 2022, 3Degrees teamed up with Merge Electric Fleet Solutions to offer actionable analysis and leverage decades of expertise for both new and existing fleet customers. As part of the partnership, 3Degrees will manage Merge’s charging operations in clean fuel states like California, Oregon, and Washington, while offsetting all EV charging with Renewable Energy Certificates (RECs). (Source:https://3degreesinc.com/news/merge-electric-fleet-solutions-announces-partnership-with-global-climate-solutions-provider-3degrees-to-support-ev-fleet-transition/) In August 2022, Johnson Controls and 3Degrees joined forces to expedite the path to net zero. Their collaboration aims to accelerate net zero objectives through enhanced carbon reduction services. (Source:https://www.johnsoncontrols.in/media-center/news/press-releases/2022/08/16/johnson-controls-collaborates-with-3degrees-to-accelerate-the-race-to-net-zero) In August 2022, Siemens Smart Infrastructure and South Pole partnered to provide a comprehensive suite of solutions and financing models designed to help companies cut energy-related emissions. (Source: January 2023 – In March 2021, Soft99 Corporation introduced the Fukupika Wash & Wax Gen.5 and G-Jetta, innovative car cleaning products that combine advanced formulations for superior washing and waxing performance.) In August 2021, South Pole and Landcare NSW formed a partnership to develop climate action projects throughout New South Wales, Australia. This collaboration combines South Pole’s global project development expertise with Landcare NSW’s extensive community network, offering a variety of carbon and biodiversity project opportunities for Landcare members across the state. (Source:https://www.southpole.com/en/news/south-pole-partners-with-landcare-nsw-to-develop-and-deliver-nature-based-climate-change-mitigation-and-biodiversity-projects-in-new-south-wales)

Top Companies Market Share in Carbon Credits Industry: (In no particular order of Rank)

• South Pole Group (Switzerland)
• 3Degrees (US)
• Finite Carbon (US)
• EKI Energy Services Ltd. (India)
• and NativeEnergy (US)
• CarbonBetter (US)
• Carbon Care Asia Limited (China)
• Terrapass (US)
• Climetrek Ltd. (US)
• Carbon Credit Capital (US)
• Natureoffice GmbH (Germany)
• Climate Partner GmbH (Germany)
• Climate Trade (US)
• ForestCarbon (UK)
• Moss.Earth (Brazil)
• Bluesource LLC (US)
• TEM (Tasman Environmental Markets (Australia)
• Climate Impact Partners (US)
• Carbonfund (US)
• Climeco LLC (US)
• Confidential Data
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Carbon Credits Market

Which Region Dominates the Carbon Credits Market in 2024?

According to Cognitive Market Research, North America is the dominant region in the carbon credits market. This leadership is attributed to the extensive regulatory frameworks established by the United States and Canada, which drive significant demand for carbon credits. The presence of major cap-and-trade systems, like California's Cap-and-Trade Program, and a robust voluntary carbon market contribute to North America's dominance. Additionally, the region’s high levels of industrial activity and emphasis on corporate sustainability further boost the carbon credits market. The strong regulatory environment and market maturity position North America as the leading region in the carbon credits sector.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expanding at the fastest CAGR in the carbon credits market. This rapid growth is driven by the region’s increasing commitment to climate action, driven by national policies and international agreements. Countries like China and India are implementing cap-and-trade systems and investing in carbon offset projects to meet their climate goals. The rise in industrialization and economic development in the region has created a growing demand for carbon credits. Additionally, the increasing awareness and adoption of voluntary carbon offsets by businesses in Asia-Pacific contribute to the region's rapid expansion in the carbon credits market.

 

The current report Scope analyzes Carbon Credits Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Carbon Credits Market

According to Cognitive Market Research, the global Carbon Credits Market size was estimated at USD 415695.5 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 166278.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 30.8% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Carbon Credits Market with a market size of USD 131193.50 million in 2024 and is projected to grow at a CAGR of 30.6% during the forecast period. Robust regulatory frameworks and corporate sustainability commitments drive growth in the US carbon credits market.
• The Canada Carbon Credits Market had a market share of USD 19953.38 million in 2024 and is projected to grow at a CAGR of 31.6% during the forecast period. Government policies promoting emissions reductions and investments in green technologies stimulate the Canadian carbon credits market.
• The Mexico Carbon Credits Market is projected to witness growth at a CAGR of 31.3% during the forecast period, with a market size of USD 15131.32 million in 2024.

Europe Carbon Credits Market

According to Cognitive Market Research, the global Carbon Credits Market size was estimated at USD 415695.5 Million, out of which Europe held the market of more than 30% of the global revenue with a market size of USD 124708.65 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.5% from 2024 to 2031.

• The United Kingdom Carbon Credits Market had a market share of USD 20951.05 million in 2024 and is projected to grow at a CAGR of 31.9% during the forecast period. The UK’s ambitious climate targets and participation in international carbon markets fuel growth in its carbon credits sector.
• The France Carbon Credits Market is projected to witness growth at a CAGR of 30.3% during the forecast period, with a market size of USD 11473.20 million in 2024.
• According to Cognitive Market Research, the German Carbon Credits Market size was valued at USD 24692.31 million in 2024 and is projected to grow at a CAGR of 31.3% during the forecast period. Germany’s stringent climate policies and strong emphasis on renewable energy drive the expansion of the carbon credits market.
• The Italy Carbon Credits Market is projected to witness growth at a CAGR of 30.5% during the forecast period, with a market size of USD 10724.94 million in 2024.
• The Russia Carbon Credits Market is projected to witness growth at a CAGR of 30.1% during the forecast period, with a market size of USD 19329.84 million in 2024.
• The Spain Carbon Credits Market is projected to witness growth at a CAGR of 30.2% during the forecast period, with a market size of USD 10226.11 million in 2024.
• The Luxembourg Carbon Credits Market is projected to witness growth at a CAGR of 31.2% during the forecast period, with a market size of USD 3865.97 million in 2024.
• The Portugal Carbon Credits Market is projected to witness growth at a CAGR of 30.9% during the forecast period, with a market size of USD 2618.88 million in 2024.
• The Greece Carbon Credits Market is projected to witness growth at a CAGR of 31.4% during the forecast period, with a market size of USD 1496.50 million in 2024.
• The Rest of Europe Carbon Credits Market is projected to witness growth at a CAGR of 29.8% during the forecast period, with a market size of USD 19329.84 million in 2024.

Asia Pacific Carbon Credits Market

According to Cognitive Market Research, the global Carbon Credits Market size was estimated at USD 415695.5 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 95609.97 million in 2024 and will grow at a compound annual growth rate (CAGR) of 34.6% from 2024 to 2031.

• According to Cognitive Market Research, the China Carbon Credits Market size was valued at USD 43024.48 million in 2024 and is projected to grow at a CAGR of 34.1% during the forecast period. Rapid industrialization and stringent emissions regulations contribute to the growth of the carbon credits market in China.
• The Japan Carbon Credits Market is projected to witness growth at a CAGR of 33.1% during the forecast period, with a market size of 13194.18 million in 2024..
• The India Carbon Credits Market had a market share of USD 11473.20 million in 2024 and is projected to grow at a CAGR of 36.4% during the forecast period. India’s increasing environmental regulations and investment in clean energy projects drive the carbon credits market expansion.
• The South Korea Carbon Credits Market is projected to witness growth at a CAGR of 33.7% during the forecast period, with a market size of USD 9561.00 million in 2024.
• The Australia Carbon Credits Market is projected to witness growth at a CAGR of 34.3% during the forecast period, with a market size of USD 4971.72 million in 2024.
• The South East Asia Carbon Credits Market is projected to witness growth at a CAGR of 35.6% during the forecast period, with a market size of USD 6597.09 million in 2024.
• The Rest of APAC Carbon Credits Market is projected to witness growth at a CAGR of 34.4% during the forecast period, with a market size of USD 6788.31 million in 2024.

South America Carbon Credits Market

According to Cognitive Market Research, the global Carbon Credits Market size was estimated at USD 415695.5 Million, out of which the Latin America market has more than 5% of the global revenue with a market size of USD 20784.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.0% from 2024 to 2031. .

• According to Cognitive Market Research, the Brazil Carbon Credits Market size was valued at USD 8895.88 million in 2024 and is projected to grow at a CAGR of 32.6% during the forecast period. Brazil’s participation in international carbon markets and focus on reforestation projects support the growth of its carbon credits market.
• Argentina's Carbon Credits Market had a market share of USD 3491.84 million in 2024 and is projected to grow at a CAGR of 32.9% during the forecast period. Argentina’s development of local carbon trading systems and environmental initiatives drive its carbon credits market.
• The Colombia Carbon Credits Market is projected to witness growth at a CAGR of 31.8% during the forecast period, with a market size of USD 1849.84 million in 2024.
• The Peru Carbon Credits Market is projected to witness growth at a CAGR of 32.2% during the forecast period, with a market size of USD 1704.35 million in 2024.
• The Chile Carbon Credits Market is projected to witness growth at a CAGR of 32.3% during the forecast period, with a market size of USD 1496.50 million in 2024.
• The Rest of LATAM Carbon Credits Market is projected to witness growth at a CAGR of 31.1% during the forecast period, with a market size of USD 3346.35 million in 2024.

Middle East Carbon Credits Market

According to Cognitive Market Research, the global Carbon Credits Market size was estimated at USD 415695.5 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 8313.91 million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.3% from 2024 to 2031.

• The GCC Countries Carbon Credits Market is projected to witness growth at a CAGR of 331.1% during the forecast period, with a market size of USD 3558.35 million in 2024. GCC countries’ investments in renewable energy and gradual adoption of carbon reduction policies stimulate market growth.li>
• The Egypt Carbon Credits Market is projected to witness growth at a CAGR of 32.6% during the forecast period, with a market size of USD 872.96 million in 2024.
• The South Africa Carbon Credits Market is projected to witness growth at a CAGR of 33.3% during the forecast period, with a market size of USD 1313.60 million in 2024. South Africa’s focus on sustainable development and participation in global carbon offset programs foster growth in its carbon credits market.
• The Turkey Carbon Credits Market is projected to witness growth at a CAGR of 31.8% during the forecast period, with a market size of USD 715.00 million in 2024.
• The Nigeria Carbon Credits Market is projected to witness growth at a CAGR of 31.4% during the forecast period, with a market size of USD 872.96 million in 2024.
• The Rest of MEA Carbon Credits Market is projected to witness growth at a CAGR of 31.3% during the forecast period, with a market size of USD 981.04 million in 2024.

Carbon Credits Market Analysis

Carbon Credits Market Type Segment Analysis

According to cognitive market research, the regulatory carbon credits segment is the largest, driven by stringent government regulations and emissions trading systems like cap-and-trade. This market segment benefits from mandatory compliance requirements imposed on industries to reduce their carbon footprint. Governments worldwide have established carbon pricing mechanisms, creating a substantial demand for regulatory credits. The enforced nature of these regulations ensures a consistent and robust market, as companies must acquire credits to meet their emission reduction targets, making this segment the dominant force in the carbon credits market.

The voluntary carbon credits segment is the fastest-growing, fueled by increasing corporate and individual commitment to sustainability beyond regulatory requirements. Companies are proactively purchasing voluntary credits to enhance their environmental credentials and meet corporate social responsibility goals. This growth is driven by rising consumer demand for environmentally responsible practices and the expansion of carbon offset projects globally. As more businesses and individuals seek to offset their carbon footprints voluntarily, this segment is experiencing rapid expansion, reflecting a broader shift towards voluntary environmental stewardship.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Carbon Credits Industry. Request a Free Sample PDF!

Carbon Credits Market System Segment Analysis

According to Cognitive Market Research, the Cap-and-Trade system is the largest segment in the carbon credits market. This system establishes a limit or "cap" on total emissions, which is distributed among participating entities as allowances. Companies that emit less than their allowance can sell surplus credits, creating a financial incentive to reduce emissions. This approach has been widely adopted by large economies and major industries due to its scalability and effectiveness in controlling emissions. Its extensive use in Europe, North America, and parts of Asia underscores its dominance and established market presence.

The Baseline-and-Credit system is the fastest-growing segment. This system issues credits based on the difference between actual emissions and a predefined baseline level, encouraging emissions reductions through project-based initiatives. Its growth is driven by increasing interest in project-specific solutions and decentralized emission reduction efforts. This system is gaining traction due to its flexibility, which allows various industries to participate, and its appeal to organizations seeking to directly invest in emission-reduction projects. The rising trend of corporate sustainability and the need for targeted emission reduction strategies contribute to its rapid expansion.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Carbon Credits End-use Industry Segment Analysis

Carbon Credits Market End-use Industry Segment Analysis

According to Cognitive Market Research, the energy sector is the largest end-use industry for carbon credits due to its significant contribution to global greenhouse gas emissions. This industry encompasses a wide range of activities, including fossil fuel-based power generation, oil extraction, and refining. The high volume of emissions from energy production and consumption drives substantial demand for carbon credits. Regulatory frameworks and corporate sustainability goals often lead energy companies to invest heavily in carbon offset projects and credits to meet compliance requirements and enhance their environmental credentials.

The aviation sector is the fastest-growing end-use industry for carbon credits, largely driven by increased regulatory pressure and the industry's commitment to sustainability. As air travel demand rises, so do emissions, prompting airlines to seek carbon offsets to meet stringent climate targets. The rapid growth in carbon offset programs tailored to aviation, coupled with innovations in sustainable aviation fuels and emissions reduction technologies, fuels this sector's swift expansion in the carbon credits market. This trend is expected to continue as the industry works towards long-term carbon neutrality goals.

• Aviation
• Energy
• Industrial
• Petrochemical
• Others

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

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