Carbon Credit Market Report 2026

The carbon credit market size has grown exponentially in recent years. It will grow from $642.74 billion in 2025 to $785.35 billion in 2026 at a compound annual growth rate (CAGR) of 22.2%. The growth in the historic period can be attributed to global environmental agreements, growing awareness on climate change, rise in voluntary offset mechanisms, increasing industrial emission concerns, early regulatory enforcement initiatives.

The carbon credit market size is expected to see exponential growth in the next few years. It will grow to $1.75 trillion in 2030 at a compound annual growth rate (CAGR) of 22.3%. The growth in the forecast period can be attributed to tightening emission caps, expansion of national net-zero commitments, increasing participation from aviation and transportation sectors, growth in carbon removal and sequestration projects, rising investor interest in climate finance. Major trends in the forecast period include expansion of compliance carbon trading frameworks, rising corporate net-zero and offset adoption, increasing cross-border carbon credit trading, growing emphasis on market transparency and pricing integrity, strengthening global regulatory alignment and standardization.

The increasing level of transport pollution is expected to propel the growth of the carbon credit market going forward. Transport pollution refers to the release of harmful substances into the air, water, or soil as a result of transportation activities. Carbon credits help offset the carbon footprint generated by transportation, including freight movement and personal vehicle usage. These offsets enable investments in sustainable practices and advanced technologies aimed at improving transportation efficiency and reducing emissions. For instance, in May 2025, according to the United States Environmental Protection Agency, a US-based government agency, approximately 66 million tons of pollutants were released into the atmosphere in the United States in 2023. Therefore, the rise in transport-related pollution is driving the growth of the carbon credit market.

Major companies operating in the carbon credit market are focusing on developing innovative solutions, such as blockchain-based platforms, to enhance transparency and customer service. Blockchain-based solutions use distributed ledger technology to improve the reliability, traceability, and efficiency of processes within the carbon credit ecosystem. For instance, in May 2023, Ernst & Young Global Limited, a UK-based professional services firm, launched EY OpsChain ESG, a blockchain-enabled platform designed to support emissions tracking and carbon credit traceability through tokenization. Built on the Ethereum network, the solution provides enterprises with a verifiable and transparent view of CO₂ emissions, helping organizations accurately measure and manage their carbon footprint. It also enhances trust among consumers, business partners, and regulators by improving ESG-related decision-making. EY OpsChain ESG complies with InterWork Alliance standards for carbon emissions tokens and enables organizations to verify the authenticity of carbon offsets used to reduce environmental impact, reinforcing the role of blockchain as a unifying framework across corporate and global sustainability ecosystems.

In November 2025, Carbon Direct Inc., a US-based carbon management and advisory company, acquired Pachama for an undisclosed amount. Through this acquisition, Carbon Direct aims to strengthen transparency and scalability in nature-based carbon credits by combining its scientific advisory expertise with Pachama’s advanced digital monitoring, reporting, and verification (MRV) tools. Pachama Inc. is a US-based carbon management company that specializes in providing access to nature-based carbon credit solutions.

Major companies operating in the carbon credit market report are Sterling Planet Inc., EKI Energy Services Limited, South Pole Group AG, Base Carbon Inc., ClimatePartner Gmbh, Bluesource LLC, 3 Degrees Inc., Carbon Care Asia Limited, 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 2025. The regions covered in the carbon credit market report are Asia-Pacific, South East Asia, 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, Taiwan, 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.

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.

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