Increasing regulation for carbon emission reduction across industries is expected to be a major driver for this market. Various countries and regional blocks have implemented strict policies and guidelines to curb greenhouse gas emissions to mitigate climate change. Non-compliance can lead to heavy financial penalties. This has prompted organizations to proactively invest in emission reduction projects and carbon offsets.

Moreover, growing carbon pricing initiatives are also fueling demand. Over 60 carbon pricing programs have been implemented worldwide covering about 20% of global emissions. A higher and expanding carbon price signals the need for more abatement projects, boosting investment opportunities in this sector.

The global climate and carbon finance market is expected to witness high growth, exhibiting CAGR of 29.% over the forecast period, due to increasing occurrence of extreme weather events and stringent government policies on emission cuts. The market size is projected to reach US$ 459.58 Mn by 2023 from US$ 184.27 Mn in 2020.

Europe dominates the global market currently due to strong climate action policies of the EU. The region accounts for over 35% market share led by developed nations like UK, Germany, and France. Asia Pacific exhibits fastest growth aided by the increasing number of carbon offset projects in major economies like China and India. Rapid industrialization and rising investments in renewable energy drive the regional market.

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https://www.dailyprbulletin.com/climate-and-carbon-finance-market-size-share-growth-outlook-2023/