The Global Carbon Credit market is estimated to be valued at US$ 31.54 Bn in 2023 and is expected to exhibit a CAGR of 24. % over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The global carbon credit market entails trading of pollution rights to release carbon dioxide and other greenhouse gases into the atmosphere. Companies and governments use carbon credits to offset their own emissions, usually through funding projects that reduce emissions elsewhere. With increasing concerns regarding climate change and transition towards low-carbon economy, demand for carbon credits is growing rapidly from sectors aiming to achieve carbon neutrality through balancing emissions.

Market Dynamics:
Rising awareness and efforts towards reducing carbon footprint is a key factor driving growth of the carbon credit market. Organizations across industries are committing to achieve net-zero emissions through investing in offset programs and carbon credit purchases. Stringent government regulations and policies regarding carbon taxation and disclosure of emissions is another factor fueling demand. However, uncertainties regarding additionality and permanence of emission reductions from offset projects poses a challenge. New technologies to measure, report and verify emission reductions more accurately is an opportunity and expected to boost transparency and reliability of the carbon credit market.

SWOT Analysis
Strength: The global carbon credit market allows companies to offset their carbon emissions. Contributors are able to monetize carbon credits through trading. Several countries and regions have established carbon trading programs.

Weakness: The verification and certification processes for carbon credits can be expensive and time consuming. Additional costs are involved in transporting, insuring and trading credits.

Opportunity: More companies are expected to participate in carbon trading to meet their voluntary emission reduction targets. The development of standardized protocols and frameworks can help reduce inefficiencies.

Threats: Political and regulatory changes in carbon pricing policies across jurisdictions pose a risk. Economic slowdowns may lower demand for credits in the short term.

Key Takeaways
Global Carbon Credit Market Demand is expected to witness high growth, exhibiting CAGR of 24% over the forecast period, due to increasing awareness among organizations about their carbon footprint. Strict environmental regulations are also driving more participants to utilize offsets.

Regional analysis: North America dominates the carbon credit market currently, owing to the presence of California Cap-and-Trade Program and the Regional Greenhouse Gas Initiative across northeastern states. Europe is another major region due to the Emissions Trading System of the European Union. Asia Pacific is expected to grow at the fastest pace with emerging programs in countries such as China, South Korea, and Japan.

Key players operating in the global carbon credit market are WGL Holdings, Inc., Enking International, Green Mountain Energy, Native Energy, Cool Effect, Inc., Clear Sky Climate Solutions, Sustainable Travel International, 3 Degrees, terrapass, and Sterling Planet, Inc. Key players are focusing on expanding their offset project portfolios and digital marketplaces to gain more customers.

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