The global carbon credit market was valued at US$ 211.5 Billion in 2019 and is expected to surpass US$ 2,407.8 Billion by 2027, registering a CAGR of 30.7% during the forecast period (2020-2027), according to the Global Carbon Credit Market Report, By Sector (Energy, Transportation, Residential and Commercial Buildings, Industry, Agriculture, Forestry, and Water and Wastewater), and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa), published by Coherent Market Insights.
Global warming is a major concern across the globe. Greenhouse gases emitted by various industries is one of the reasons behind increasing global warming. Thus, in order to tackle the increasing global warming issue, the carbon credit method is being adopted worldwide. A carbon credit is a certificate or tradable permit that allows a company or an individual (or certificate holders) to emit certain amount of greenhouse gases such as carbon dioxide, methane, nitrous oxide, and others into the atmosphere. One credit means the company or an individual holding the certificate can emit mass equal to one ton of carbon dioxide. In other words, governments or regulatory authorities decide on a certain cap limit on the greenhouse emissions by the company. Some companies may find it hard to implement this carbon cap immediately, thus they purchase certain carbon credits from companies which are already carbon offsets, which further helps to subsidize the ongoing green projects for carbon credits selling company. The primary objective of this carbon credit system is to reduce the overall carbon emissions, globally.
Many companies are purchasing carbon credits in order to reduce the carbon emissions. For instance, on February 5, 2021, Microsoft Corporation purchased US$ 20/ ton credit for carbon sequestered in the soil from Truterra LLC, a subsidiary of U.S.-based Land O'Lakes, Inc., an agriculture corporation.
The rapid outbreak of COVID-19 across the globe has significantly affected all the industries globally. The situation caused significant deterioration in economic conditions and government had to shut down commercial as well as educational sectors for a specific period.
Strict containment measures have resulted in a drop of economic activities, the business environment of many organizations has changed. For instance, the ongoing and planned projects of construction, mining, and other industries have been delayed, or cancelled. Also, the carbon market prices in the EU under the EU Emissions Trading System (EU-ETS) are plunging as a consequence of the economic shutdown.
To know the latest trends and insights prevalent in this market, click the link below:
Browse 60 market data tables* and 40 figures* on “Global Carbon Credit Market- Global forecast to 2027”
Key Trends and Analysis of the Global Carbon Credit Market:
Joining thousands of companies around the world committed to making the Excellent Business Solutions.