Carbon Offset/Carbon Credit Market is predicted to reach USD 4994.3 billion at a CAGR of 32.0% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global Carbon Offset/Carbon Credit Market”.

The Carbon Offset/Carbon Credit market is estimated to register a CAGR of 32.0% during the forecast period of 2023 to 2032.

MRFR recognizes the following companies as the key players in the global Carbon Offset/Carbon Credit market— 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.

Market Highlights

The global Carbon Offset/Carbon Credit market is accounted to register a CAGR of 32.0% during the forecast period and is estimated to reach USD 4994.3 billion by 2032.

The implementation of government regulations and international agreements aimed at reducing greenhouse gas emissions. These regulations, such as carbon pricing mechanisms and emission reduction targets set under agreements like the Paris Agreement, create a strong incentive for businesses and organizations to invest in carbon offset projects and purchase carbon credits to meet their emission reduction obligations and demonstrate environmental responsibility. Governments and organizations worldwide are implementing policies, regulations, and carbon reduction targets that require the purchase of carbon offsets and credits as a means to achieve emission reduction goals and demonstrate environmental responsibility.

Segment Analysis

The global Carbon Offset/Carbon Credit market has been segmented based on type, project type and end user.

On the basis of type, the market is segmented into Compliance Market and Voluntary Market. The voluntary market segment was attributed to holding the largest market share in 2022, as it encourages innovation in carbon offset projects.

Based on project type, the global Carbon Offset/Carbon Credit market has been segmented into Avoidance/Reduction Projects and Removal/Sequestration Projects. The removal/sequestration projects segment was expected to hold the largest market share in 2022, as it is highly effective at capturing and storing carbon dioxide.

Based on end user, the global Carbon Offset/Carbon Credit market has been segmented into Power, Energy, Aviation, Transportation, Industrial, Buildings and Others. The industrial segment was expected to hold the largest market share in 2022, because they invest in carbon offset projects in order to compensate for their emission.

Regional Analysis

The global Carbon Offset/Carbon Credit market, based on region, has been divided into the North America, Europe, Asia-Pacific, and Rest of the World. North America consists of US and Canada. The Europe Carbon Offset/Carbon Credit market comprises of Germany, France, the UK, Italy, Spain, and the rest of Europe. The Carbon Offset/Carbon Credit market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World Carbon Offset/Carbon Credit market comprises of Middle East, Africa, and Latin America.

The largest market share for Carbon Offset/Carbon Credit was maintained by the North American regional sector. This increase is attributed to the stringent environmental regulations and climate policies at the federal, state, and regional levels drive the demand for carbon offsets and credits. Many North American companies, including major corporations, are making voluntary commitments to reduce their carbon footprints and achieve carbon neutrality. They purchase carbon credits as a strategic part of their sustainability initiatives, demonstrating their commitment to environmental responsibility. Further, growing investor and consumer interest in environmental, social, and governance (ESG) factors is prompting businesses to adopt sustainable practices and offset their emissions through the purchase of carbon credits.

Moreover, the Europe market has been persistently growing over the forecast period. The demand for Carbon Offset/Carbon Credit is driven by stringent emissions reduction targets set by the European Union (EU) as part of its commitment to combat climate change. The EU Emissions Trading System (EU ETS) and various national initiatives incentivize businesses and industries to invest in carbon offset projects and purchase credits to comply with emissions caps, fostering a robust carbon market in the region.

Additionally, due to the the adoption of sustainable and low-carbon practices by governments and industries to mitigate the impact of climate change, Asia Pacific is anticipated to experience the quickest growth over the forecast period. Additionally, international agreements and initiatives, such as the Paris Agreement, encourage countries in the Asia Pacific to actively participate in carbon reduction efforts, resulting in a growing demand for carbon offset and credit mechanisms to achieve emissions targets and support sustainable development.

Furthermore, the rest of the world's Carbon Offset/Carbon Credit market is divided into the Middle East, Africa, and Latin America. This growth is attributed to the combination of international climate agreements, corporate sustainability initiatives, and the growing recognition of the need to address climate change on a global scale, prompting increased demand for emissions reductions and carbon offsetting solutions t. Government support, a rise in investor interest, and the viability of the technology in the sector are all contributing factors to the market expansion.

Key Findings of the Study

• The global Carbon Offset/Carbon Credit market is expected to reach USD 4994.3 billion by 2032, at a CAGR of 32.0% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market due to the increasing emphasis placed on green energy and carbon emission reduction by government bodies through policies and initiatives


• Based on end user, the industrial segment was attributed to holding the largest market in 2022, with an approximate market share of 20-30%.


• 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.