Carbon credits, also known as carbon offsets, are certificates or permits that represent the right to emit one tonne of carbon dioxide or the mass of another greenhouse gas. They are issued by regulatory bodies to companies or other entities aiming to comply with mandatory emission reduction targets. Carbon credits allow regulated companies and organizations to meet emission reduction obligations by purchasing credits to offset their emissions. The global carbon credit market offers lower-cost compliance to emission regulations for industries and provides sustainable development projects an opportunity to earn additional revenue.

The global Carbon Credit Market is estimated to be valued at US$ 31.54 billion in 2023 and is expected to exhibit a CAGR of 3.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Carbon credit trading schemes are gaining prominence across various countries and regions due to stringent environmental policies and increasing awareness regarding climate change risks. For example, the European Union Emission Trading Scheme (EU ETS) is considered as one of the largest carbon markets globally covering over 11,000 power stations and industrial plants in 31 countries. China, the largest carbon emitter globally, also launched its national emissions trading scheme in 2021 covering over 2,000 power plants. The demand for carbon credits is expected to surge manifold over the next decade driven by expansion of existing emissions trading programs to new sectors and geographies as well as emergence of voluntary carbon credit platforms for organization aiming to achieve net-zero targets.

SWOT Analysis
Strength: The growing concerns regarding climate change and global warming are driving the growth of the carbon credit market. Governments across various countries are focusing on reducing their carbon footprint which is positively impacting the market.
Weakness: Lack of consistency in carbon pricing and frequent changes in government policies related to carbon emission can hamper the growth of the market. Carbon credits also involve a complex verification and validation process.
Opportunity: Developing economies in Asia Pacific and Middle East & Africa are emerging as lucrative markets due to rapid industrialization. Carbon offset programs provide an opportunity to invest in emission reduction projects.
Threats: Economic slowdowns can significantly reduce industrial activity and demand for carbon credits. Emergence of alternate technologies that help reduce carbon emissions at lower costs pose a threat.

Key Takeaways
The Global Carbon Credit Market Share is expected to witness high growth over the forecast period supported by stringent government regulations and climate change initiatives globally. The global Carbon Credit Market is estimated to be valued at US$ 31.54 billion in 2023 and is expected to exhibit a CAGR of 3.0% over the forecast period 2023 to 2030.

Regional analysis comprises:
The Asia Pacific region currently accounts for the largest share in the global carbon credit market due to robust industrial growth and coal dominance in power generation in China and India. China is the fastest growing country supported by initiatives to curb industrial carbon emissions. Governments across Southeast Asian countries are also promoting afforestation programs to generate carbon credits.

Key players related content comprises:
Key players operating in the carbon credit market are South Pole, 3Degrees, Metrovacesa, EcoAct, Allcot Group. These players are focused on providing carbon offsetting solutions, undertaking emission reduction projects across industries, and facilitating trading of carbon credits globally. South Pole and 3Degrees have a significant market share due strong footprint across international markets.

For more details on the report, Read- https://www.ukwebwire.com/global-carbon-credit-market-growth-demand-and-overview/