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Carbon Credits Market to Reach USD 97.41 Billion by 2032 Amid Accelerating Climate Goals and Carbon
from Carbon Credits Market to Reach USD 97.41 Billion by 2032 Amid Accelerating Climate Goals and Carbon
Carbon credits operate as permits, each representing the removal of one ton of carbon dioxide from the environment. These credits are predominantly acquired by individuals or businesses seeking to offset their carbon emissions stemming from industrial activities. Various registries such as the American Carbon Registry (ACR), Climate Action Reserve (CAR), and the UN Clean Development Mechanism (UN CDM), among others, oversee and regulate these carbon credits.
Carbon Credits Market size was valued at USD 479.41 Billion in 2023 and is poised to grow from USD 668.3 Billion in 2024 to USD 97.41 Billion by 2032, growing at a CAGR of 39.4% during the forecast period (2025-2032).
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What’s Driving the Surge in Carbon Credits?
1. Global Net-Zero Commitments:Over 130 countries and thousands of companies have pledged to reach net-zero emissions by mid-century. Carbon credits are being used to offset residual emissions that are hard to eliminate entirely, especially in hard-to-abate sectors like aviation, cement, and agriculture.
2. Government Regulations and Carbon Pricing:Carbon pricing instruments, including cap-and-trade programs and carbon taxes, are being deployed across the EU, North America, and Asia-Pacific. Markets such as the EU ETS, California Cap-and-Trade, and China’s National Carbon Market are setting the stage for robust compliance demand.
3. Growth of the Voluntary Carbon Market (VCM):Outside regulated schemes, companies are increasingly investing in carbon offsets voluntarily to boost their ESG credentials, meet investor expectations, and attract eco-conscious consumers. Voluntary carbon markets are expected to outpace compliance markets in terms of growth and innovation.
4. Nature-Based and Tech-Based Solutions:High-quality offset projects in reforestation, afforestation, peatland restoration, and emerging technologies like carbon capture and storage (CCS), direct air capture (DAC), and blue carbon are gaining investor interest and commanding premium credit pricing.
Market Segmentation Overview:
By Market Type:
Compliance Carbon Market (e.g., under government-regulated systems)
Voluntary Carbon Market (driven by corporate or individual actions)
By Project Type:
Renewable Energy (solar, wind)
Forestry and Land Use (REDD+, agroforestry)
Methane Capture
Energy Efficiency
Carbon Capture Technologies
By End-User Industry:
Energy & Power
Oil & Gas
Manufacturing
Aviation & Maritime
Agriculture
Financial Services
Technology & Telecom
Regional Highlights:
North America:Strong adoption in the U.S. and Canada driven by corporate net-zero pledges, ESG investment trends, and the growth of state-level compliance markets.
Europe:Leads the global market due to the EU Emissions Trading System (EU ETS) and growing demand for offsets in aviation (via CORSIA).
Asia-Pacific:Witnessing rapid growth with China’s national carbon market and increased participation by India, Japan, South Korea, and Southeast Asian countries.
Latin America & Africa:Emerging as key regions for carbon offset supply—especially in forestry, biodiversity, and community-based projects.
Market Challenges and Roadblocks:
Quality and Verification Issues:Concerns over the authenticity, permanence, and additionality of some offset projects may impact trust. Third-party verification and new technologies like blockchain and MRV (monitoring, reporting, and verification) tools are helping improve transparency.
Fragmented Regulatory Frameworks:The lack of unified standards across countries and registries makes it challenging for investors and buyers to evaluate credit quality consistently.
Double Counting Risks:Ensuring credits are not counted multiple times under different programs or jurisdictions remains a regulatory and operational challenge.
Future Outlook: A Key Piece of the Climate Puzzle
SkyQuest predicts that carbon credits will not only become an essential financial tool for achieving net-zero but will also emerge as a critical commodity in the global transition toward sustainable economies.
The convergence of digital innovation, fintech integration, carbon credit tokenization, and real-time monitoring will open up new markets and transparency standards. Additionally, as Article 6 of the Paris Agreement comes into play, cross-border carbon credit trading is expected to become more streamlined and scalable.
Leading Players in the Market:
· 3Degrees Group, Inc.
· Carbon Care Asia Ltd.
· CarbonBetter
· ClearSky Climate Solutions
· EKI Energy Services Ltd.
· Finite Carbon
· Native Energy
· South Pole Group
· Torrent Power Ltd.
· WGL Holdings Inc.
· Tasman Environmental Markets
· Climeco Llc
· Climetrek Ltd.
· Climatepartner Gmbh
· Climate Impact Partners
· Terrapass
· Carbon Credit Capital
· Bluesource Llc
· Carbonfund
To access the full report, visit: https://www.skyquestt.com/report/carbon-credits-market
About SkyQuest Technology:
SkyQuest Technology is a global market intelligence, advisory, and research firm helping businesses and governments decode market trends and identify strategic opportunities. With specialized expertise in sustainability, climate tech, energy, and emerging markets, SkyQuest provides end-to-end insights for future-ready decision-making.
