Carbon Credit Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The carbon credit market size has grown exponentially in recent years. It will grow from $526.32 billion in 2024 to $694.62 billion in 2025 at a compound annual growth rate (CAGR) of 32%. The growth in the historic period can be attributed to international climate agreements, corporate social responsibility (CSR) renewable energy projects, forest conservation and reforestation, emission reduction projects.

The carbon credit market size is expected to see exponential growth in the next few years. It will grow to $1.89 trillion in 2029 at a compound annual growth rate (CAGR) of 28.5%. The growth in the forecast period can be attributed to climate finance investments, expansion of cap-and-trade systems, global carbon pricing initiatives, supply chain emission reduction. Major trends in the forecast period include carbon credit offset programs, investment flows into carbon market projects, integration with corporate strategies, blockchain technology for transparency, nature-based solutions.

The pressing need to curtail global carbon emissions is anticipated to drive the growth of the carbon credit market in the foreseeable future. Carbon emissions, comprising carbon dioxide and other carbon-containing gases released into the atmosphere, contribute to the planet's warming by trapping heat from the sun. Carbon credits serve as financial incentives for companies to reduce emissions, aiding the environment by sequestering carbon from the atmosphere, offering a structured approach for emission reduction, and stimulating economies by fostering investment in sustainable endeavors. Notably, a report from the United Nations Framework Convention on Climate Change in October 2022 outlined the imperative to slash CO2 emissions by 45% by 2030. To cap the global temperature rise at 1.5 degrees Celsius by the century's end, emissions reductions must surge to around ten times the current levels, roughly from 1 to 2 billion tons annually. Thus, the burgeoning drive to mitigate global carbon emissions is poised to propel the expansion of the carbon credit market.

The upsurge in transport-related pollution is projected to further propel the growth of the carbon credit market moving forward. Transport pollution denotes the release of harmful substances into the environment due to transportation activities, encompassing air, water, or soil pollution. Carbon credits serve as a mechanism to offset the carbon footprint generated by transportation, including both freight transport and personal vehicles. These credits can be channeled into sustainable practices and technologies aimed at enhancing freight transport efficiency. For instance, data from the Environmental Protection Agency (EPA) in August 2023 highlighted that transportation contributed the largest share (29%) of total US greenhouse gas emissions in 2021. Furthermore, a report by the Congressional Budget Office in December 2022 underscored that transportation stood as the primary source of greenhouse gas emissions in the United States, with CO2 emissions accounting for approximately 97% of the overall global warming potential from transportation-related greenhouse gases. Consequently, the escalating concern regarding transport-related pollution actively fuels the growth trajectory of the carbon credit market.

Key players in the carbon credit market are channeling their efforts toward pioneering solutions, such as blockchain-based technologies, to deliver steadfast customer service. Blockchain-based solutions leverage blockchain technology to address specific challenges or refine existing processes. A notable example is Ernst & Young Global Limited, which, in May 2023, introduced EY OpsChain ESG, a blockchain-based solution dedicated to emissions and carbon credit traceability facilitated through tokenization. Developed on the Ethereum platform, this solution offers a verifiable view of CO2 emissions, particularly beneficial for enterprises grappling with accurate measurement and tracking of their carbon footprint. EY OpsChain ESG aims to provide transparency to consumers, business partners, and regulatory bodies, facilitating more informed decision-making concerning Environmental, Social, and Corporate Governance (ESG) initiatives. Compliant with the InterWork Alliance for Carbon Emissions Tokens standards, the solution enables enterprises to validate the legitimacy of carbon offsets used to mitigate environmental impact. EY OpsChain ESG's creation is rooted in the belief that blockchains can serve as an integrative force connecting corporate operations with global ecosystems across organizational boundaries.

In March 2023, Sweep, a carbon management and reduction platform based in France, formed a partnership with 3Degrees. This collaboration aims to enhance Sweep's offerings by integrating 3Degrees's expertise in carbon measurement and reduction solutions. 3Degrees, a company located in the United States, specializes in providing carbon credits.

Major companies operating in the carbon credit market report are NRG Energy Inc., Atos SE, WGL Holdings Inc., Sterling Planet Inc., AltaGas Ltd., EKI Energy Services Limited, Aker Carbon Capture AS, South Pole Group AG, Base Carbon Inc., ClimatePartner Gmbh, Bluesource LLC, 3 Degrees Inc., Carbon Care Asia Limited, Sustainable Travel International Inc., Cool Effect Inc., NativeEnergy Inc., Carbonbetter Inc., ClimeCo Corporation, Tasman Environmental Markets Pty Ltd., Carbon Credit Capital LLC, Carbonfund.org Foundation Inc., Clearsky Climate Solutions LLC, Climate Impact Partners LLC, ClimateTrade Inc., Climetrek Ltd., Finite Carbon Corporation, Forest Carbon Ltd., Moss Earth LLC, NatureOffice Gmbh, Terrapass Inc.

North America was the largest region in the carbon credit market in 2024. The regions covered in the carbon credit market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carbon credit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The carbon credit market includes revenues earned by entities by providing nature-based projects and technology-based projects. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

A carbon credit represents a transferable voucher or authorization that indicates the entitlement to release one metric ton of carbon dioxide (CO2) or an equivalent amount of other greenhouse gases (GHGs). These credits play a vital role in mitigating greenhouse gas emissions by directly reducing emissions or by capturing and storing carbon dioxide, contributing to the broader objective of limiting the release of these gases into the atmosphere.

The primary types of carbon credits are compliance and voluntary. Compliance carbon credits are issued as part of government-mandated emissions reduction programs, often linked to cap-and-trade systems or emissions trading schemes. These credits are generated through projects classified into two main types such as avoidance or reduction projects and removal or sequestration projects. Carbon credit projects are implemented across various sectors, including power, energy, aviation, transportation, buildings, industrial processes, and others.

The carbon credit market research report is one of a series of new reports that provides carbon credit market statistics, including carbon credit industry global market size, regional shares, competitors with a carbon credit market share, detailed carbon credit market segments, market trends and opportunities, and any further data you may need to thrive in the carbon credit industry. This carbon credit market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.