Monthly U.S. transportation emissions typically follow a similar pattern each year, with the lowest emissions produced in February and the highest emissions produced in August. A notable exception to this was in 2020. Emissions plummeted to a monthly low in April of that year due to the outbreak of COVID-19 and the resulting lockdowns and travel bans imposed across the country. As of June 2025, monthly U.S. transportation emissions averaged 160 million metric tons of carbon dioxide.

The datasets comprise greenhouse gas (GHG) emission factors (Factors) for 1,016 U.S. commodities as defined by the 2017 version of the North American Industry Classification System (NAICS). The Factors are based on GHG data for 2022. Factors are given for all NAICS-defined commodities at the 6-digit level except for electricity, government, and households. Each record consists of three factor types as in the previous releases: Supply Chain Emissions without Margins (SEF), Margins of Supply Chain Emissions (MEF), and Supply Chain Emissions with Margins (SEF+MEF). One set of Factors provides kg carbon dioxide equivalents (CO2e) per 2022 U.S. dollar (USD) for all GHGs combined using 100-yr global warming potentials from IPCC 5th report (AR5) to calculate the equivalents. In this dataset there is one SEF, MEF and SEF+MEF per commodity. The other dataset of Factors provides kg of each unique GHG emitted per 2022 dollar per commodity without the CO2e calculation. The dollar in the denominator of all factors uses purchaser prices. See the supporting file 'Aboutv1.3SupplyChainGHGEmissionFactors.docx' for complete documentation of this dataset.

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Carbon Dioxide Market Size 2025-2029

The carbon dioxide market size is valued to increase USD 2.36 billion, at a CAGR of 4.7% from 2024 to 2029. Rising demand for CO2 in oil and gas industry will drive the carbon dioxide market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 51% growth during the forecast period.
By Technology - Combustion segment was valued at USD 4.65 billion in 2023
By Application - Enhanced oil recovery segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 45.62 million
Market Future Opportunities: USD 2359.80 million
CAGR : 4.7%
APAC: Largest market in 2023

Market Summary

The market encompasses the global production, consumption, and trade of CO2 as a commodity. Key drivers propelling market growth include the rising demand for CO2 in the oil and gas industry for enhanced oil recovery and the surge in research and development activities for new applications in various sectors such as food and beverages, pharmaceuticals, and textiles. However, the high manufacturing cost of industrial CO2 poses a significant challenge to market expansion. According to a recent report, the oil and gas segment accounted for over 60% of the global CO2 market share in 2020. As the market continues to evolve, stakeholders must navigate the complex regulatory landscape and adapt to emerging trends, ensuring a sustainable and efficient CO2 value chain.

What will be the Size of the Carbon Dioxide Market during the forecast period?

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How is the Carbon Dioxide Market Segmented and what are the key trends of market segmentation?

The carbon dioxide industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Technology

  Combustion
  Biological


Application

  Enhanced oil recovery
  Food and beverages
  Precipitated calcium carbonate
  Others


Source

  Ethyl alcohol
  Hydrogen
  Substitute natural gas
  Ethylene oxide
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Technology Insights

The combustion segment is estimated to witness significant growth during the forecast period.

The market encompasses various applications, including carbon footprint calculation, geologic carbon storage, and CO2 conversion processes, among others. Carbon footprint calculation is a critical aspect of climate change mitigation, helping businesses and individuals assess their greenhouse gas emissions. Geologic carbon storage involves injecting CO2 deep underground to reduce emissions. Combustion processes, such as biomass gasification, algae biofuel production, and renewable fuel production, are essential components of the market. These processes contribute to emissions reduction by generating energy from renewable sources and reducing reliance on fossil fuels. Additionally, afforestation and reforestation, methane emission reduction, renewable energy integration, emissions trading schemes, ocean CO2 absorption, waste gas treatment, sustainable transportation, enhanced oil recovery, carbon mineralization, industrial process optimization, atmospheric CO2 monitoring, carbon pricing mechanisms, greenhouse gas accounting, building energy codes, carbon tax policies, CO2 pipeline infrastructure, industrial CO2 utilization, and steel production emissions are all integral parts of the market.

According to recent studies, the carbon capture technology market is expected to grow by 15% in the next year, driven by increasing demand for reducing emissions. Furthermore, energy efficiency measures, such as the adoption of LED lighting and smart grids, are projected to expand by 20% during the same period. These trends underscore the market's continuous evolution and the ongoing efforts to minimize carbon emissions across various sectors.

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The Combustion segment was valued at USD 4.65 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 51% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The Carbon Dioxide (CO2) market in Asia Pacific (APAC) is experiencing notable expansion, driven by the escalating demand for CO2 in food processing and beverage carbonation applications. China and India are the primary contributors to

As of June 2025, monthly U.S. electric power sector emissions averaged approximately 134 million metric tons of carbon dioxide (MtCO₂). The highest monthly emissions in 2024 were recorded in July, at 158 MtCO₂. Monthly electric power sector emissions follow a similar pattern each year, with emissions typically highest in July and lowest in April.

According to Cognitive Market Research, the global Carbon Dioxide in Environmental market size was USD 11524.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 5.50% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 4609.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 3457.35 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 2650.64 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 576.23 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.9% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 230.49 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
The Gaseous State category is the fastest growing segment of the Carbon Dioxide in Environmental industry

Market Dynamics of Carbon Dioxide in Environmental Market

Key Drivers for Carbon Dioxide in Environmental Market

Development of Carbon Capture, Utilization, and Storage (CCUS) technologies to Boost Market Growth

The development of Carbon Capture, Utilization, and Storage (CCUS) technologies is a crucial driver of the carbon dioxide (CO2) environmental market due to its potential to significantly reduce greenhouse gas emissions from industrial processes and power generation. CCUS technologies enable the capture of CO2 emissions at their source, preventing them from entering the atmosphere. This captured CO2 can then be utilized in various applications, such as in the production of synthetic fuels, chemicals, or building materials, promoting a circular carbon economy. Moreover, advancements in CCUS technologies are attracting substantial investments, supported by government incentives and climate commitments. As industries strive to meet stringent emissions targets, CCUS plays a pivotal role in facilitating the transition to a low-carbon economy, driving market growth and innovation. For instance, JX Nippon Oil & Gas Exploration Corporation and Chevron New Energies, part of Chevron U.S.A. Inc., have signed a memorandum of understanding to evaluate the feasibility of exporting carbon dioxide from Japan to carbon capture and storage (CCS) projects in Australia and other Asia-Pacific countries. This collaboration aims to strengthen the companies' presence in the market.

Corporate Social Responsibility (CSR) practices to Drive Market Growth

Corporate Social Responsibility (CSR) practices are significantly driving the carbon dioxide (CO2) environmental market as businesses increasingly recognize the importance of sustainable operations. Companies are adopting CSR initiatives to enhance their brand reputation, meet consumer expectations, and mitigate climate change impacts. By committing to reduce their carbon footprint, organizations implement strategies such as energy efficiency improvements, sustainable sourcing, and the adoption of carbon capture technologies. These efforts not only fulfill regulatory requirements but also align with global climate goals, attracting environmentally conscious investors. Furthermore, transparency in CSR reporting fosters trust among stakeholders and consumers, further pushing businesses toward adopting innovative CO2 reduction solutions. As more companies integrate CSR into their core strategies, the demand for carbon management technologies and services continues to rise, fueling market growth.

Restraint Factor for the Carbon Dioxide in Environmental Market

High Costs of Technology will Limit Market Growth

The high costs of technology are a significant restraint on the carbon dioxide (CO2) environmental market, hindering the widespread adoption of carbon capture, utilization, and storage (CCUS) solutions. The initial capital investment required for developing and implementing advanced CO2 management technologies can be substantial, making it challenging for many companies, especially small and medium-sized enterprises, to participate. Additionally, ongoing operational and maintenance c...

Global carbon dioxide emissions from fossil fuels and industry totaled 37.01 billion metric tons (GtCO₂) in 2023. Emissions are projected to have risen 1.08 percent in 2024 to reach a record high of 37.41 GtCO₂. Since 1990, global CO₂ emissions have increased by more than 60 percent. Who are the biggest emitters? The biggest contributor to global GHG emissions is China, followed by the United States. China wasn't always the world's biggest emitter, but rapid economic growth and industrialization in recent decades have seen emissions there soar. Since 1990, CO₂ emissions in China have increased by almost 450 percent. By comparison, U.S. CO₂ emissions have fallen by 6.1 percent. Nevertheless, the North American country remains the biggest carbon polluter in history. Global events cause emissions to drop The outbreak of COVID-19 caused global CO₂ emissions to plummet some 5.5 percent in 2020 as a result of lockdowns and other restrictions. However, this wasn't the only time in recent history when a major global event caused emissions reductions. For example, the global recession resulted in CO₂ levels to fall by almost two percent in 2009, while the recession in the early 1980s also had a notable impact on emissions. On a percentage basis, the largest annual reduction was at the end of the Second World War in 1945, when emissions decreased by 17 percent.

Global carbon dioxide emissions from fossil fuels and industry totaled 38.11 billion metric tons (GtCO₂) in 2025. Emissions are projected to have risen 0.87 percent in 2025 to reach a record high of 38.11 GtCO₂. Since 1990, global CO₂ emissions have increased by more than 69 percent. Who are the biggest emitters? The biggest contributor to global GHG emissions is China, followed by the United States. China wasn't always the world's biggest emitter, but rapid economic growth and industrialization in recent decades have seen emissions there soar. Since 1990, CO₂ emissions in China have increased by almost 450 percent. By comparison, U.S. CO₂ emissions have fallen by 6.1 percent. Nevertheless, the North American country remains the biggest carbon polluter in history. Global events cause emissions to drop The outbreak of COVID-19 caused global CO₂ emissions to plummet some 5.5 percent in 2020 as a result of lockdowns and other restrictions. However, this wasn't the only time in recent history when a major global event caused emissions reductions. For example, the global recession resulted in CO₂ levels to fall by almost two percent in 2009, while the recession in the early 1980s also had a notable impact on emissions. On a percentage basis, the largest annual reduction was at the end of the Second World War in 1945, when emissions decreased by 17 percent.

The global carbon tax market is experiencing robust growth, driven by increasing global awareness of climate change and the urgent need to reduce greenhouse gas emissions. Governments worldwide are implementing carbon pricing mechanisms, including carbon taxes, to incentivize businesses and individuals to adopt cleaner technologies and practices. This market is projected to reach a significant size, estimated at $150 billion in 2025, based on current market trends and adoption rates. The Compound Annual Growth Rate (CAGR) for the period 2025-2033 is estimated to be 8%, reflecting the expected intensification of climate policies and technological advancements in carbon capture and emission reduction. Key segments driving growth include carbon dioxide taxes in the industrial sector, followed by transportation and agriculture. The market is geographically diverse, with significant contributions from North America and Europe, though the Asia-Pacific region is anticipated to show accelerated growth due to rapid industrialization and increasing government regulations. While the implementation of effective carbon tax systems faces challenges such as economic impact on certain industries and the complexity of cross-border regulations, the long-term trajectory points toward consistent growth due to increasing international cooperation on climate action and evolving technological solutions for carbon emission mitigation. The leading revenue generators in the carbon tax market are governmental tax agencies like the Internal Revenue Service (IRS), Canada Revenue Agency, and similar entities across the globe. These agencies play a crucial role in the implementation and enforcement of carbon tax policies, shaping market dynamics. The market's future trajectory will be significantly influenced by evolving international agreements, technological advancements in renewable energy, and the evolving geopolitical landscape, all of which have the potential to accelerate or decelerate the rate of carbon tax adoption and enforcement globally. Further research into specific regional implementations and economic impacts is needed to refine these projections and to offer a more nuanced analysis for specific market segments. However, the overarching trend remains clear: significant expansion of the carbon tax market is anticipated for the foreseeable future.

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Carbon Capture and Storage Market Size 2025-2029

The carbon capture and storage market size is forecast to increase by USD 15.83 billion at a CAGR of 26.6% between 2024 and 2029.

The market is experiencing significant growth due to increasing reliance on fossil fuels for electricity generation and the rising popularity of CCS projects in developing nations. However, the market faces challenges such as the risks associated with CCS technology, including high costs and potential safety concerns. The dependence on fossil fuels for power generation continues to drive the demand for CCS technology as countries seek to reduce their carbon footprint and meet emission reduction targets. Industrial processes, such as iron and steel, cement and concrete, chemicals, fertilizers, textiles, food and beverages, paper and pulp, and biofuels, also generate substantial CO2 emissions.
In reaction, there has been a prevailing shift towards implementing Carbon Capture and Storage (CCS) projects and CO2 removal, particularly in developing countries. In addition, the growing popularity of CCS projects in developing nations, particularly in Asia Pacific, is expected to boost market growth.

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The market is experiencing significant growth as industries and electricity generators seek to reduce their greenhouse gas emissions, particularly those derived from fossil fuels. The primary drivers of this market include the need to mitigate the environmental impact of CO2 emissions from power generation and industrial processes, as well as regulatory pressures aimed at reducing greenhouse gas emissions to address climate change and ozone depletion. CCS technology, also known as Carbon Capture, Utilization, and Storage (CCUS), captures CO2 before or after the combustion process, with applications ranging from pre-combustion capture in heavy industry to post-combustion capture in power generation.



Industrial sources, particularly those in the cement, steel, and chemical industries, are significant contributors to the market, as are power generation sources, such as coal-fired and natural gas-fired power plants. The market is further bolstered by tax benefits and increasing energy needs, as industries and power generators strive to reduce their carbon footprints and comply with evolving regulations and policies. Technology providers are investing heavily in innovation to improve the efficiency and affordability of CCS technology, making it a key component of the transition to a low-carbon economy.

How is this Carbon Capture and Storage Industry segmented and which is the largest segment?

The carbon capture and storage (CCS) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Technology

  Pre-combustion
  Post-combustion
  Oxy-fuel combustion


Application

  Enhanced oil recovery
  Geological storage


Distribution Channel

  Pipeline
  Ships


End-user

  Power and oil and gas
  Manufacturing


Geography

  North America

    Canada
    US


  APAC

    China
    India


  Europe

    Germany
    UK
    Norway


  Middle East and Africa



  South America

    Brazil

By Technology Insights

The pre-combustion segment is estimated to witness significant growth during the forecast period. The market is primarily driven by the implementation of pre-combustion technology, which separates CO2 from fuel before combustion. This process is executed in a steam reformer, converting fuel into carbon monoxide (CO) and hydrogen (H2), with the CO gas and steam converted into H2 and CO2. The isolated H2 can be utilized as fuel for power and industry plants or vehicles. Advancements in pre-combustion technology, particularly the enhancement of physical and chemical absorbing solvents, are anticipated to fuel market growth during the forecast period.

Natural gas plants employ CCS technology to reduce greenhouse gas emissions and mitigate environmental impact, aligning with climate change awareness and sustainable environment objectives. CCS technology also offers an opportunity to utilize depleted hydrocarbon fields as storage sites, providing an additional economic benefit.

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The pre-combustion segment was valued at USD 2.84 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 66% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market share of

Energy consumption in the United States produced 4.8 billion metric tons of carbon dioxide (GtCO₂) in 2024 - a decrease of 0.4 percent from the previous year. U.S. CO₂ emissions from energy consumption have fallen by approximately 20 percent since 2005. Sources of emissions in the U.S. The main source of CO₂ emissions in the U.S. is the transportation sector. For many years, the power sector was the country’s biggest contributor to CO₂ emissions, but the transition towards cleaner energy sources and a shift away from coal-fired power generation – the most carbon intensive fossil fuel – have slashed emissions from this sector. Meanwhile, transportation emissions have continued to rise, except for an unprecedented drop in 2020 due to the outbreak of COVID-19. U.S. transportation emissions The U.S. is the biggest contributor to global transportation emissions by far. The states with the largest transportation-related emissions in the U.S. are Texas and California, which combined account for almost one quarter of total U.S. transportation emissions.

The global Carbon Emission Real-time Monitoring Platform market is experiencing robust growth, projected to reach a value of $1333.6 million in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 4.3% from 2025 to 2033. This expansion is driven by increasing regulatory pressures on industries to reduce their carbon footprint, coupled with growing awareness of environmental sustainability among businesses and consumers. Key drivers include the rising adoption of stringent emission reduction targets, the increasing demand for precise and real-time emission data for efficient carbon management, and technological advancements enhancing the accuracy and affordability of monitoring solutions. The market is segmented by deployment type (Local Based and Cloud Based) and application (Steel, Power, and Chemical Industries), each showing significant growth potential. The cloud-based segment is expected to dominate due to its scalability, accessibility, and cost-effectiveness. Among application segments, the power industry is currently leading, given the sector's significant contribution to global emissions, followed closely by the steel and chemical industries. Growth is further fueled by the expanding adoption of advanced analytics and AI in emissions data processing, allowing for predictive modelling and optimized emission reduction strategies. The competitive landscape is characterized by a blend of established players and emerging innovative companies. Companies like GHGSat, Kayrros, and Carbon Mapper are leading the way in providing advanced satellite-based monitoring solutions, while established industrial giants such as ABB and Emerson Electric are leveraging their expertise to integrate monitoring technologies into existing industrial processes. The market's geographical distribution shows a strong presence across North America and Europe, driven by stringent environmental regulations and advanced infrastructure in these regions. However, Asia-Pacific is expected to witness significant growth in the coming years due to rapid industrialization and increasing government initiatives to tackle emissions. This growth trajectory indicates a promising outlook for investors and stakeholders, highlighting the crucial role of real-time monitoring platforms in achieving global emission reduction goals.

Industrial Carbon Dioxide Emissions, Natural Gas for West Virginia was 8.68725 Mil. Metric Tons CO2 in January of 2021, according to the United States Federal Reserve. Historically, Industrial Carbon Dioxide Emissions, Natural Gas for West Virginia reached a record high of 8.68725 in January of 2021 and a record low of 2.00724 in January of 2009. Trading Economics provides the current actual value, an historical data chart and related indicators for Industrial Carbon Dioxide Emissions, Natural Gas for West Virginia - last updated from the United States Federal Reserve on November of 2025.

United States - Producer Price Index by Industry: Industrial Gas Manufacturing: Carbon Dioxide was 778.69500 Index Jun 1981=100 in August of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Industry: Industrial Gas Manufacturing: Carbon Dioxide reached a record high of 778.69500 in August of 2025 and a record low of 100.00000 in July of 1981. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Industry: Industrial Gas Manufacturing: Carbon Dioxide - last updated from the United States Federal Reserve on November of 2025.

United States All Sectors: Carbon Pricing Score: Excluding Emissions from the Combustion of Biomass: EUR 30 per Tonne of CO2 data was reported at 31.709 % in 2018. United States All Sectors: Carbon Pricing Score: Excluding Emissions from the Combustion of Biomass: EUR 30 per Tonne of CO2 data is updated yearly, averaging 31.709 % from Dec 2018 (Median) to 2018, with 1 observations. The data reached an all-time high of 31.709 % in 2018 and a record low of 31.709 % in 2018. United States All Sectors: Carbon Pricing Score: Excluding Emissions from the Combustion of Biomass: EUR 30 per Tonne of CO2 data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Effective Carbon Rates: by Sector: OECD Member: Annual. The carbon pricing score answers the question how close countries are to price carbon in line with carbon costs. EUR 60 is a midpoint estimate for carbon costs in 2020, and a low-end estimate for 2030. Pricing all emissions at least at EUR 60 in 2020 shows that a country is on a good track to reach the goals of the Paris Agreement to decarbonise by mid-century economically. EUR 30 is a historic low-end estimate for carbon costs, and EUR 120 is a midrange estimate for carbon costs in 2030.; The carbon pricing score answers the question how close countries price carbon emissions in line with carbon costs. EUR 30 per tonne CO2 is a historic low-end estimate for carbon costs in the mid-2010s. A carbon price of EUR 30 in 2025 is also consistent with decarbonisation by 2060 according to Kaufman et al. (2020).More generally, a carbon pricing score of 100% shows that a country prices all carbon emissions at the carbon cost estimate or more, and a carbon pricing score of 0% shows that a country does not price any carbon emissions.The carbon pricing score by country, by sector answers the question how close countries price carbon emissions in line with carbon costs within a given sector.For additional information, see Effective Carbon Rates 2021

Increasing demand for woody biomass-derived electricity in the UK and elsewhere has resulted in a rapidly expanding wood pellet manufacturing industry in the southern US. Since this demand is driven by climate concerns and an objective to lower greenhouse gas (GHG) emissions from the electricity sector, it is crucial to understand the full carbon consequences of wood pellet sourcing, processing, and utilization. We performed a comparative carbon life cycle assessment (LCA) for pellets sourced from three mills in the southern US destined for electricity generation in the UK. The baseline assumptions included GHG emissions of the UK’s 2018 and 2025 target electricity grid mix and feedstock supplied primarily from non-industrial private forest (NIPF) pine plantations augmented with a fraction of sawmill residues. Based on regional expert input, we concluded that forest management practices on the NIPF pine plantations would include timely thinning harvest treatments in the presence of pellet demand. The LCA analysis included landscape carbon stock changes based on USDA Forest Service Forest Vegetation Simulator using current USDA Forest Service Forest Inventory and Analysis data as the starting condition of supply areas in Arkansas, Louisiana and Mississippi. We found that GHG emission parity (i.e., the time when accumulated carbon GHG emissions for the bioenergy scenario equal the baseline scenario) is more than 40 years for pellets produced at each individual pellet mill and for all three pellet mills combined when compared to either the UK’s 2018 electricity grid mix or the UK’s targeted electricity grid mix in 2025. The urgency to mitigate climate change with near-term actions as well as increasing uncertainty with longer-term simulations dictated a focus on the next four decades in the analysis. Even at 50% sawmill residues, GHG emission parity was not reached during the 40 years modeled. Results are most likely conservative since we assume a high share of sawmill residues (ranging from 20 to 50%) and did not include limited hardwood feedstocks as reported in the supply chain which are generally associated with delayed GHG emission parity because of lower growth rates.

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Carbon Credit Market Size 2025-2029

The carbon credit market size is forecast to increase by USD 1,966.3 billion at a CAGR of 32.1% between 2024 and 2029.

The market is experiencing significant growth due to rising emissions in the Earth's atmosphere, which necessitates the need for businesses and individuals to offset their carbon footprint. Booming investment and partnership deals in this market are driving its expansion, with various organizations recognizing the importance of reducing their carbon emissions and contributing to environmental sustainability. However, the fluctuating prices of carbon credits pose a challenge for market participants, as they can impact the profitability of carbon offsetting projects.
To stay competitive, market players must closely monitor carbon credit prices and adapt their strategies accordingly. In summary, the market is witnessing increasing demand due to growing environmental concerns and regulatory requirements, but its growth is influenced by the volatility of carbon credit prices.

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The market has gained significant traction in recent years as businesses and individuals seek to offset their carbon emissions and contribute to the global decarbonization effort. This market facilitates the buying and selling of carbon credits, which represent the right to emit a specific amount of greenhouse gases. The voluntary carbon market plays a crucial role in this context, enabling organizations to offset their carbon footprint beyond regulatory requirements. Net-zero greenhouse-gas emissions have become a key business objective, driving demand for carbon credits from various sources. Forestry projects are a significant contributor to the market. These projects involve the protection, restoration, or reforestation of forests, which act as carbon sinks, absorbing and storing carbon dioxide from the atmosphere.
Carbon emission reduction projects, such as renewable energy and energy efficiency initiatives, also contribute to the market. Carbon storage projects, including those focused on geological storage, are another essential component. The market's dynamics are influenced by various factors, including regulatory policies, market prices, and technological advancements. As the world moves towards a low-carbon economy, the demand for carbon credits is expected to continue growing, making it an attractive investment opportunity for businesses and individuals alike.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Power
  Energy
  Transportation
  Industrial
  Others


Type

  Compliance
  Voluntary


Geography

  Europe

    Germany
    UK
    France
    Italy


  Asia

    China


  North America



  Rest of World (ROW)

By End-user Insights

The power segment is estimated to witness significant growth during the forecast period.

Carbon credits represent financial instruments that enable organizations to invest in emission reduction projects, contributing to the global effort to transition from fossil fuels to renewable energy sources. These initiatives, which focus on conservation, biodiversity, and livelihoods, provide a means to reduce greenhouse gas emissions and mitigate the effects of climate change.

Additionally, the energy sector, specifically power generation, can benefit significantly from this shift, as renewable energy sources offer a sustainable and non-depleting alternative to coal and natural gas. To achieve the international goal of limiting global temperature rise to 2°C or 1.5°C above pre-industrial levels, the reduction of greenhouse gas emissions is crucial. Carbon credits facilitate this transition by incentivizing investment in renewable energy projects and reducing the overall carbon footprint.

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The power segment was valued at USD 61.30 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 84% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European Union (EU) held a significant share of The market in 2023, with countries like the UK and Germany being major buyers. To achieve climate neutrality by 2050, the EU established the International Emissions Trading System (ETS) in 2005, which sets the cost of CO2 emissions and uses

The carbon dioxide industry, which plays a vital role in supplying sectors such as beverages, enhanced oil recovery and a wide range of industrial applications, is in the midst of a period of strong growth. It is currently expanding at a CAGR of 12.6%. In 2025 alone, the industry is expected to grow by 4.7%, bringing revenues to approximately $2.5 billion. Some of this momentum is being driven by advances in capture and purification technologies, which are improving the profit margin by reducing operating costs and energy requirements. The adoption of modular, scalable processing units and the use of advanced materials have enhanced product quality, plant efficiency and environmental performance. These innovations not only support sustainability and emissions-reduction goals but also help producers maintain compliance with tightening regulations, strengthening both market competitiveness and overall revenue stability. In structural terms, the industry remains heavily oriented toward domestic supply chains, with exports representing only a small proportion of total production. The bulk of those exports are directed to Canada and Mexico, where close proximity and favorable trade conditions under agreements such as the USMCA support cost-efficient cross-border shipments. Supply chain resilience is further reinforced by growing use of modular on-site CO2 capture and reuse technologies at customer facilities, which reduce reliance on external suppliers and long-distance transportation. At the same time, producers are expanding into new utilization markets such as synthetic fuels, specialty chemicals and sustainable building materials. These emerging applications diversify revenue streams, reduce exposure to fluctuations in traditional demand patterns and enable producers to participate more fully in the growth of the circular carbon economy. The industry is forecast to expand at a 5.4% CAGR through 2030, reaching an estimated $3.3 billion in annual revenue. Continued growth will be supported by increasing CO2 demand for enhanced oil recovery projects and broader industrial expansion. Persistent upward pressure on feedstock and energy costs is expected to sustain price increases, and when combined with efficiency gains from advanced capture and modular deployment, this will bolster both profit potential and operational flexibility. Meanwhile, accelerating regulatory and sustainability requirements will further spur investment in low-carbon and circular technologies, positioning the industry for durable growth, stronger market positioning, and long-term resilience in an evolving economic and environmental landscape.

Carbon Capture And Storage (CCS) Market Outlook

As of 2023, the Carbon Capture and Storage (CCS) market size is estimated at approximately USD 4.5 billion, with projections suggesting a substantial expansion to USD 12.1 billion by 2032, driven by a compound annual growth rate (CAGR) of 11.6% over the forecast period. The critical growth factors contributing to this market's expansion include increasing global energy demand, stringent government regulations aimed at reducing carbon emissions, and growing investments in sustainable technologies. CCS technology is becoming an essential component of the global strategy to combat climate change by reducing the carbon footprint of industrial processes and fossil fuel-based power generation.

The growing awareness and concern over climate change have significantly fueled the development and adoption of CCS technologies. Governments worldwide are implementing stricter environmental policies and regulations to curb greenhouse gas emissions, leading to an increased emphasis on carbon capture solutions. The increasing number of international agreements, such as the Paris Agreement, has also underscored the need for advanced technologies to reduce carbon emissions. As industries strive to meet these stringent environmental regulations, the demand for CCS systems is expected to surge, thereby driving market growth. Furthermore, advancements in CCS technologies are making the processes more efficient and cost-effective, further bolstering market expansion.

Another contributing factor to the growth of the CCS market is the increasing global energy demand, which compels industries to seek more sustainable and environmentally friendly energy production methods. As fossil fuels still account for a significant portion of the global energy mix, CCS technologies offer a viable solution for mitigating carbon emissions from these sources. The power generation sector, in particular, is a major contributor to CO2 emissions, and the integration of CCS technologies can significantly reduce the environmental impact of fossil fuel-powered plants. The transition towards cleaner energy sources and technologies is expected to further propel the CCS market as industries and governments aim to achieve their carbon neutrality targets.

Moreover, substantial investments in research and development activities are amplifying the adoption of CCS technologies. Both private enterprises and government bodies are channeling significant resources towards the development of innovative CCS solutions that are more efficient and cost-effective. This influx of investments is not only enhancing the technological capabilities of CCS systems but also reducing the associated costs, thereby making them more accessible to a broader range of industries. The increasing number of pilot projects and commercial deployments of CCS technologies across various sectors is indicative of the growing confidence in and demand for these solutions, which is expected to drive market growth in the coming years.

Regionally, the CCS market is experiencing significant growth across various geographies, with North America and Europe leading the charge. North America, with its well-established infrastructure and supportive government policies, accounts for a substantial share of the global CCS market. Europe is also experiencing robust growth, driven by stringent EU regulations and the region's commitment to achieving net-zero emissions by 2050. The Asia Pacific region is emerging as a potential growth hub for the CCS market, with countries like China and India investing heavily in carbon reduction technologies to address their rising pollution levels and meet international environmental standards. Other regions, such as Latin America and the Middle East & Africa, are also recognizing the importance of CCS technologies, although their market penetration is currently at a nascent stage compared to North America and Europe.

Technology Analysis

The Carbon Capture and Storage market is segmented into three primary technologies: Pre-Combustion Capture, Post-Combustion Capture, and Oxy-Fuel Combustion. Each of these technologies plays a unique role in the carbon capture process, with applications across various sectors such as power generation, industrial processes, and chemical production. Pre-combustion capture involves the removal of carbon dioxide before fossil fuels are burned. This process is typically applied in integrated gasification combined cycle (IGCC) power plants. By converting fossil fuels into hydrogen and CO2 before combustion, it allows for the capture of CO2 at a relatively high concentration, making the s

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Carbon Management Software Market Size 2025-2029

The carbon management software market size is forecast to increase by USD 15.62 billion, at a CAGR of 17.7% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing number of new launches and the ongoing mergers and acquisitions among companies. This market dynamic reflects the increasing importance of carbon management solutions in addressing the global shift towards sustainability and reducing carbon emissions. Renewable energy certificates and carbon credits facilitate the transition to clean technology and decarbonization strategies. However, the implementation of these software solutions faces a notable challenge: the lack of adequate training for users. As organizations adopt these tools to manage their carbon footprint, ensuring their workforce is proficient in utilizing the software is essential for maximizing its potential benefits.
Companies seeking to capitalize on this market opportunity must prioritize user training and support to ensure the successful integration and utilization of carbon management software. Navigating this challenge effectively will be crucial for organizations to effectively manage their carbon emissions and contribute to a more sustainable future. The integration of AI, cloud-based deployment, and data analytics enhances the capabilities of carbon management software.

What will be the Size of the Carbon Management Software Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by various factors including regulatory mandates, emissions trading, climate action plans, and the push for net zero emissions. These initiatives span across sectors, from energy and utilities to urban planning and sustainable agriculture. Carbon emissions tracking is a critical component, with real-time analytics and machine learning enabling process optimization and emissions reduction targets. Sustainability reporting and carbon accounting are essential for corporate social responsibility and ESG investing. Climate risk assessment and environmental impact monitoring are integral to climate change mitigation and adaptation.

Circular economy principles, such as resource efficiency and waste management, are increasingly adopted for sustainability practices. Cap and trade systems and carbon taxes encourage emissions reduction, while green bonds and climate bonds finance renewable energy projects and sustainable development. Carbon sequestration, biodiversity conservation, and LEED certification contribute to environmental management systems. Smart cities, public transportation, and building automation promote energy efficiency improvements and water conservation. The ongoing unfolding of market activities reflects the continuous dynamism of the carbon management landscape. This includes the emergence of industry-specific solutions, sustainability standards, and climate regulations.

The integration of green technology and clean technology further strengthens the role of carbon management software in addressing climate change and promoting a more sustainable future.

How is this Carbon Management Software Industry segmented?

The carbon management software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Solution

  Software
  Services


End-user

  Large enterprises
  SMEs


Deployment

  Cloud-based
  On-premises


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Solution Insights

The software segment is estimated to witness significant growth during the forecast period. Carbon management software has gained significant traction among large organizations due to its customizable and solution-focused approach. Many software providers offer cloud-based systems, allowing clients to avoid the need for on-premise deployment and additional hardware purchases. The manufacturing sector is a notable adopter of carbon management software, using it to monitor emissions from production processes and supply chains. This software identifies energy inefficiencies and offers opportunities for emissions reductions, enabling companies to optimize operations and adhere to environmental regulations. The circular economy and sustainability practices are also driving the adoption of carbon management software in various industries.

Green finance, carbon sequestration, and climate risk assessment are integral components of these solutions, helping organizations make

The global carbon tax market is experiencing robust growth, driven by increasing government regulations aimed at mitigating climate change and the rising awareness of environmental sustainability. While precise market size data for 2025 is not provided, considering a plausible CAGR of 10% (a reasonable estimate based on current market trends and governmental initiatives) and assuming a 2019 market size of $50 billion USD, the market size in 2025 could be estimated at approximately $80 billion USD. This growth trajectory is expected to continue through 2033, with the market driven by factors such as increasing carbon emissions from various sectors, the implementation of stricter environmental regulations (e.g., the EU Emissions Trading System), and growing investor interest in sustainable investments. The market's segmentation, encompassing diverse carbon sources (CO2, methane, nitrous oxide, and others) and applications (industrial, transportation, agriculture, residential), presents significant opportunities for businesses involved in carbon emission reduction and carbon credit trading. Further fueling this expansion is the growing adoption of carbon pricing mechanisms by governments worldwide, though the pace of adoption varies across regions.
The key restraining factors include the high implementation costs associated with carbon taxes, potential negative impacts on economic competitiveness, and the challenges in accurately measuring and monitoring carbon emissions across different sectors and geographical locations. However, technological advancements in emission monitoring and carbon capture, utilization, and storage (CCUS) technologies, coupled with continued governmental support and international cooperation, are expected to mitigate these challenges and propel further market growth in the forecast period (2025-2033). The involvement of prominent tax authorities like the IRS, Canada Revenue Agency, and others, underscores the global nature of this market and the critical role of governmental frameworks in its development. The diverse regional landscape, with North America, Europe, and Asia-Pacific representing key markets, highlights the global importance of effective carbon pricing strategies for achieving environmental sustainability goals.