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Carbon Offset Market: By Type, By Project Type ), By End User and Geography
Carbon Offset Market: By Type, By Project Type ), By End User and Geography
Carbon Offset Market size was valued at US$ 516.2 million in 2023 and is poised to grow at a CAGR of 26.3% from 2024-2030. Carbon offsetting refers to the act of investing in projects that will reduce or compensate for the greenhouse gas emissions that are being produced. It takes place in various environmental investment projects such as reforestation, renewable energies, and energy-efficiency projects, that is, those either reducing or absorbing quantities of CO2, or other greenhouse gas, emissions. People, either individually or as part of organizations, buy carbon offsets to counterbalance the other sources of carbon emission that are being used. Broadly, human activities are directed into investments in forests, renewable energy, and energy efficiency. Governments are implementing stricter regulations and policies aimed at reducing carbon emissions. For instance, the European Union's Emissions Trading System (EU ETS) is a major driver of the carbon offset market in Europe.
Moreover, growing awareness of climate change and environmental degradation is pushing governments, corporations, and individuals to reduce their carbon footprints, thereby driving the demand for carbon offsets. However, the cost of implementing carbon offset projects can be high, particularly for smaller organizations, which may deter widespread adoption. Whereas, innovations in carbon capture and storage (CCS) and renewable energy technologies can enhance the effectiveness and reduce the costs of carbon offset projects, creating new opportunities in the market.
Study Period
2024-2030Base Year
2023CAGR
26.3%Largest Market
Asia-PacificFastest Growing Market
Asia-Pacific
This has now become one of the major driving factors for the carbon offset market: government regulatory pressure, which is exerted across borders. With acute regulations and policies framed to reduce GHG emissions, their increasing burden directly drives demand for carbon offsets from governments worldwide. For instance, the European Union's Emissions Trading System (EU ETS) is the world's largest carbon trading market. It is an application of the "cap-and-trade" model wherein a cap is placed on the overall GHG emissions that are permissible. Companies are allocated or can purchase emission allowances that they can sell and buy with each other. Heavy emitters therefore buy carbon offsets to meet their emission quota, hence increasing demand for these offsets.
Government Statistics In 2023, EU ETS covered more than 10,000 installations in the power generation and manufacturing sectors of 31 countries and accounted for about 40% of the GHG emissions of the EU. This has been the main driving force behind the carbon offset market in Europe. Additionally, in 2023, Microsoft announced that it had purchased carbon offsets summing up to 1 million metric tons of CO2 equivalent to help it serve its carbon neutrality goals.
Europe dominates the carbon offset market, driven by the robust regulatory setting of the EU ETS, high environmental awareness, and huge government support for sustainability initiatives in the region. The "Fit for 55" package envisions a net reduction of at least 55% in greenhouse gas emissions by the year 2030, relative to the levels seen in 1990. This further accelerated the pace of adoption of carbon offsets across the region.
North America, which includes the United States and Canada, is yet another key market. The United States has had a massive rise in the purchase of voluntary carbon offsets, particularly by technology companies striving to cut their carbon emissions down to near zero. In 2023, Microsoft announced that it had purchased carbon offsets summing up to 1 million metric tons of CO2 equivalent to help it serve its carbon neutrality goals. Moreover, Asia-Pacific is expected to witness the fastest growth, driven by rapid industrialization, increasing environmental concerns, and government initiatives in countries like China and India.
Latin America
Europe
Asia Pacific
Middle East
North America
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Report Benchmarks |
Details |
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Report Study Period |
2024-2030 |
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Market Size in 2023 |
US$ 516.2 million |
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Market CAGR |
26.3% |
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By Type |
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By Project Type |
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By End User |
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The global carbon offset market size was valued at US$ 516.2 million in 2023 and is expected to grow at a CAGR of 26.3% from 2024-2030.
Major drivers include regulatory pressure, increased environmental awareness, and corporate social responsibility initiatives.
Europe leads the market due to stringent regulations, such as the EU Emissions Trading System (ETS).
Opportunities include expansion in developing economies, technological advancements, and public-private partnerships.
1. Executive Summary
2. Global Carbon Offset Market Introduction
2.1. Global Carbon Offset Market - Taxonomy
2.2. Global Carbon Offset Market - Definitions
2.2.1. Type
2.2.2. Project Type
2.2.3. End User
2.2.4. Region
3. Global Carbon Offset Market Dynamics
3.1. Drivers
3.2. Restraints
3.3. Opportunities/Unmet Needs of the Market
3.4. Trends
3.5. Key Developments
4. Global Carbon Offset Market By Type, 2019-2023 and Forecast 2024-2030 (Sales Value USD Million)
4.1. Compliance Market
4.1.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
4.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
4.1.3. Market Opportunity Analysis
4.2. Voluntary Market
4.2.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
4.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
4.2.3. Market Opportunity Analysis
5. Global Carbon Offset Market By Project Type, 2019-2023 and Forecast 2024-2030 (Sales Value USD Million)
5.1. Avoidance/Reduction Projects
5 1 1 Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
5.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
5.1.3. Market Opportunity Analysis
5.2. Removal/Sequestration Projects
5.2.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
5.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
5.2.3. Market Opportunity Analysis
6. Global Carbon Offset Market By End User, 2019-2023 and Forecast 2024-2030 (Sales Value USD Million)
6.1. Power
6.1.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
6.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
6.1.3. Market Opportunity Analysis
6.2. Energy
6.2.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
6.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
6.2.3. Market Opportunity Analysis
6.3. Aviation
6.3.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
6.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
6.3.3. Market Opportunity Analysis
6.4. Transportation
6.4.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
6.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
6.4.3. Market Opportunity Analysis
6.5. Industrial
6.5.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
6.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
6.5.3. Market Opportunity Analysis
6.6. Buildings
6.6.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
6.6.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
6.6.3. Market Opportunity Analysis
6.7. Others
6.7.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
6.7.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
6.7.3. Market Opportunity Analysis
7. Global Carbon Offset Market By Region, 2019-2023 and Forecast 2024-2030 (Sales Value USD Million)
7.1. North America
7.1.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
7.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
7.1.3. Market Opportunity Analysis
7.2. Europe
7.2.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
7.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
7.2.3. Market Opportunity Analysis
7.3. Asia Pacific
7.3.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
7.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
7.3.3. Market Opportunity Analysis
7.4. Latin America
7.4.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
7.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
7.4.3. Market Opportunity Analysis
7.5. MEA
7.5.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Million)
7.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%)
7.5.3. Market Opportunity Analysis
7.6. Global Carbon Offset Market - Opportunity Analysis Index, By Project Type, Type, End User, , , , , and Region, 2024-2030
8. North America Carbon Offset Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Million)
8.1. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
8.1.1. Compliance Market
8.1.2. Voluntary Market
8.2. Project Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
8.2.1. Avoidance/Reduction Projects
8.2.2. Removal/Sequestration Projects
8.3. End User Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
8.3.1. Power
8.3.2. Energy
8.3.3. Aviation
8.3.4. Transportation
8.3.5. Industrial
8.3.6. Buildings
8.3.7. Others
8.4. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
8.4.1. USA
8.4.2. Canada
9. Europe Carbon Offset Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Million)
9.1. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
9.1.1. Compliance Market
9.1.2. Voluntary Market
9.2. Project Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
9.2.1. Avoidance/Reduction Projects
9.2.2. Removal/Sequestration Projects
9.3. End User Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
9.3.1. Power
9.3.2. Energy
9.3.3. Aviation
9.3.4. Transportation
9.3.5. Industrial
9.3.6. Buildings
9.3.7. Others
9.4. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
9.4.1. Germany
9.4.2. UK
9.4.3. France
9.4.4. Italy
9.4.5. Spain
9.4.6. Rest of Europe
10. Asia Pacific Carbon Offset Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Million)
10.1. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
10.1.1. Compliance Market
10.1.2. Voluntary Market
10.2. Project Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
10.2.1. Avoidance/Reduction Projects
10.2.2. Removal/Sequestration Projects
10.3. End User Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
10.3.1. Power
10.3.2. Energy
10.3.3. Aviation
10.3.4. Transportation
10.3.5. Industrial
10.3.6. Buildings
10.3.7. Others
10.4. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
10.4.1. China
10.4.2. India
10.4.3. Japan
10.4.4. South Korea
10.4.5. ASEAN Countries
10.4.6. Rest of APAC
11. Latin America Carbon Offset Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Million)
11.1. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
11.1.1. Compliance Market
11.1.2. Voluntary Market
11.2. Project Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
11.2.1. Avoidance/Reduction Projects
11.2.2. Removal/Sequestration Projects
11.3. End User Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
11.3.1. Power
11.3.2. Energy
11.3.3. Aviation
11.3.4. Transportation
11.3.5. Industrial
11.3.6. Buildings
11.3.7. Others
11.4. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
11.4.1. Brazil
11.4.2. Mexico
11.4.3. Argentina
11.4.4. Rest of Latin America
12. MEA Carbon Offset Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Million)
12.1. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
12.1.1. Compliance Market
12.1.2. Voluntary Market
12.2. Project Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
12.2.1. Avoidance/Reduction Projects
12.2.2. Removal/Sequestration Projects
12.3. End User Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
12.3.1. Power
12.3.2. Energy
12.3.3. Aviation
12.3.4. Transportation
12.3.5. Industrial
12.3.6. Buildings
12.3.7. Others
12.4. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%)
12.4.1. GCC Countries
12.4.2. Israel
12.4.3. South Africa
12.4.4. Rest of MEA
13. Competition Landscape
13.1. Strategic Dashboard of Top Market Players
13.2. Company Profiles (Introduction, Financial Analysis, By Product Offerings, Key Developments, Strategies, and SWOT Analysis)
13.2.1. South Pole Group
13.2.2. CarbonBetter
13.2.3. Carbonneutral
13.2.4. Climate Partner GmbH
13.2.5. NativeEnergy
13.2.6. Carbon Credit Capital
13.2.7. Bluesource LLC
13.2.8. EKI Energy Services Ltd.
13.2.9. Carbon Care Asia Ltd.
13.2.10. Finite Carbon
14. Research Methodology
15. Key Assumptions and Acronyms
Key Market Players
Author
Prem Kumar with profound experience and sound knowledge across a wide range of market forecasting methods, demand forecasting, and pricing analysis, I am able to make precise projections. I have extensive practical knowledge in Time Series Analysis (TSA), Simple Linear Regression (SLR), Multiple Linear Regression (MLR), Seasonality & Trend Forecasting, and Forecasting Models for New Products, among others. Additionally, I have hands-on experience with tools such as Power BI and SQL. I am highly committed, self-motivated, and possess a strong entrepreneurial spirit. Over the past 8 years, my team and I have built a robust clientele in various sectors, including Packaging, Pharma, Medical Devices, Oil & Gas, and Chemicals & Materials. We have provided a wide range of services, from management consulting to market forecasting and survey-related projects. I am particularly proud to have provided consulting services to one of the industry’s leading COVID-19 vaccine manufacturers for a packaging-related project. In the packaging space, I have served clients across a range of segments, including packaging printing, consumer packaging, flexible packaging, rigid packaging, and pharmaceutical packaging, to name a few. I deeply appreciate the efforts of my team and am grateful to our clients for their continued trust.