EU Carbon Permits rose to 70.96 EUR on June 27, 2025, up 0.80% from the previous day. Over the past month, EU Carbon Permits's price has fallen 1.54%, but it is still 5.34% higher than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. This dataset includes a chart with historical data for EU Carbon Permits.

This dataset provides the annual voluntary carbon market transaction volume, value, and price for total traded carbon credits. In addition, it provides the cumulative issuances and retirements.As source mentioned, These data on voluntary carbon market dynamics come from EM’s database of voluntarily disclosed over-the-counter (OTC) carbon credit transactions, which are shared with EM by an international network of more than 180 “EM Respondents,” including project developers, investors, and intermediaries with headquarters in over 40 countries and representing carbon credit sales from thousands of nature-based and technological carbon projects in over 100 countries.Data on project registrations, credit issuances, and retirements come from the following project registries: ACR, CAR, CDM, City Forest Credits, Global Carbon Council, Gold Standard, Plan Vivo, and VCS.

As of April 2025, the European Union Emission Trading Scheme (EU ETS) carbon price was above ** U.S. dollars per metric tons of carbon dioxide equivalent (USD/tCO₂e). The EU ETS launched in 2005 as a cost-effective way of reducing greenhouse gas emissions, and was the world's first major international carbon market. The UK was formerly part of the EU ETS, but replaced this with its own system after withdrawing from the EU. As of April 2025, the price of carbon on the UK ETS was almost ** USD/tCO₂e.

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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.

What will the Carbon Credit Market Size during the forecast period?

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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

The average price of voluntary carbon market (VCM) credits decreased by *** percent in 2024 year-on-year, to **** U.S. dollars per metric ton of carbon dioxide equivalent. The market value of the VCM totaled just over *** million U.S. dollars that year.

The size of the Compliance Carbon Credit Market was valued at USD 0.82 Million in 2023 and is projected to reach USD 2.16 Million by 2032, with an expected CAGR of 14.81% during the forecast period. The compliance carbon credit market is essential in the global initiative to mitigate greenhouse gas emissions, offering a structured approach for companies and nations to fulfill their regulatory requirements under climate policies. This market functions within cap-and-trade frameworks or carbon pricing systems established by governmental bodies and international accords, including the Paris Agreement. Entities that are subject to emission restrictions must either curtail their emissions or acquire carbon credits to offset any excess emissions. These credits signify verified reductions in greenhouse gases achieved through various projects, such as renewable energy developments, reforestation efforts, or methane capture technologies. The compliance carbon credit market has experienced substantial growth as an increasing number of regions adopt obligatory carbon pricing. Notable examples include the European Union Emissions Trading System (EU ETS) and California’s Cap-and-Trade Program, where industries are mandated to purchase credits to adhere to emission limits. This market creates a financial incentive for businesses to invest in cleaner technologies and practices, thereby encouraging innovation and contributing to a reduction in overall emissions. Nevertheless, the market encounters challenges, including the need for credible verification of carbon credits, the prevention of market manipulation, and the management of price fluctuations in carbon credits. Despite these challenges, the compliance carbon credit market continues to be a vital tool for achieving global climate objectives and advancing sustainable development. Recent developments include: April 2024: Regional efforts in the Western United States and Canada are gaining momentum as the urgency of combating climate change increases. Plans to link their carbon markets are being drawn up in California, Quebec, and Washington, which could significantly affect trading dynamics. The three authorities intend to work together to create a more extensive carbon credit market as soon as their proposed alliance takes effect., January 2024: The Commodity Futures Trading Commission (CFTC) issued proposed guidance on the listing of voluntary carbon credit (VCC) derivatives contracts on designated contract markets for the public to comment on the proposal.. Key drivers for this market are: Regulatory Mandates and Policies, Growing Corporate Sustainability Initiatives. Potential restraints include: Market Complexity and Uncertainty. Notable trends are: Charting the Course of Carbon Pricing: UK-ETS Post-Brexit.

This dataset forms the basis of a systematic analysis that examines different approaches and frameworks employed in forecasting future carbon credit prices.

Voluntary carbon offset prices could reach as high as 238 U.S. dollars per ton of carbon dioxide (USD/tCO₂) by 2050 if integrity issues within the market are resolved. However, if the market continues to operate without rigorous standards, and integrity issues remain a concern for companies, then carbon offset credits would trade at just 14 USD/tCO₂ in 2050. Meanwhile, prices would soar to 146 USD/tCO₂ by 2030 if the market is restricted to only carbon removals.

The carbon offset/carbon credit market size is projected to grow from USD 681 billion in 2025 to USD 6,231 billion by 2035, representing a CAGR of 24.7%, during the forecast period till 2035

The Carbon Offsets Market size was valued at USD 938.75 USD Billion in 2023 and is projected to reach USD 2222.23 USD Billion by 2032, exhibiting a CAGR of 13.1 % during the forecast period. The carbon offsets market is a mechanism that lowers the overall global emissions of greenhouse gases by enabling those who generate carbon pollution to purchase and sell carbon credits that represent one metric ton of CO2 or equivalent gases eliminated from the atmosphere. Offsets have become a tool that firms employ in their determination to meet their sustainability objectives as well as fulfilling the legal standards and improving corporate citizenship. The market has voluntary segments achieved through private efforts and compliance segments anchored on government rules. Offset projects include hydro or solar power, forests planted, energy saving or avoiding methane recovery. This market reduces global warming and greenhouse gases, supports sustainable growth, incentivizes technological change, ensures that emissions goals can be met in multiple ways, supports multilateralism and delivers public goods and services benefits. Recent developments include: August 2023 – The Doha-based Global Carbon Council announced plans to list its carbon credits on the MENA exchanges platform. This initiative is expected to increase the number of carbon offset investors and boost the number of active carbon emission projects in the Middle East region.. Key drivers for this market are: Strict Government Regulations to Neutralize Carbon Emissions by 2050 Have Boosted the Market. Potential restraints include: Limited Awareness of the Carbon Offsetting and Low Carbon Credit Scores in Multiple Countries May Hamper Market Growth . Notable trends are: Increasing Adoption of Carbon Offsets by Voluntary Projects is the Emerging Trend in the Market.

Voluntary Carbon Credit Trading Market size was valued at USD 2.97 Billion in 2024 and is projected to reach USD 31.81 Billion by 2031, growing at a CAGR of 34.5% from 2024 to 2031.

The Voluntary Carbon Credit Trading Market is driven by several factors, including the increasing global focus on climate change mitigation, the growing demand for corporate climate action, and the need to offset carbon emissions. The rise of carbon pricing mechanisms and the increasing awareness of the environmental impact of greenhouse gas emissions are fueling the demand for carbon credits. Additionally, the development of robust and transparent carbon credit trading platforms, coupled with advancements in technology, are enabling efficient and secure carbon credit transactions. Furthermore, the increasing participation of corporations, financial institutions, and governments in the carbon market is driving its growth and maturity.

The Compliance Carbon Credit Market, valued at $820 million in 2025, is projected to experience robust growth, driven by escalating global efforts to mitigate climate change and meet stringent emission reduction targets. A Compound Annual Growth Rate (CAGR) of 14.81% from 2025 to 2033 indicates a significant expansion of the market, reaching an estimated value exceeding $3 billion by 2033. Key drivers include the increasing implementation of carbon pricing mechanisms (e.g., carbon taxes, emissions trading schemes) across various jurisdictions, coupled with growing corporate sustainability initiatives and investor pressure to reduce carbon footprints. The market's segmentation reveals considerable opportunities across renewable energy projects (solar, wind), forestry and land use (afforestation, reforestation), energy efficiency improvements in industries, and sustainable transportation solutions. North America and Europe are expected to dominate the market initially, given established regulatory frameworks and robust corporate engagement. However, Asia-Pacific is poised for significant growth in the coming years, driven by increasing industrialization and government support for carbon reduction policies in key markets like China and India. While the market faces restraints like fluctuating carbon prices and complexities in verifying and monitoring carbon credits, the overall outlook remains positive. Continued technological advancements in carbon accounting, the emergence of new carbon offsetting projects, and heightened awareness among businesses and consumers about climate change will contribute to sustained market expansion. The leading players in this market, including Carbon Trust, ClimateCare, and others, are strategically positioning themselves to capitalize on this growth by investing in project development, carbon credit verification, and innovative carbon management solutions. The increasing demand for high-quality and verifiable carbon credits will shape the competitive landscape, requiring companies to enhance transparency and operational efficiency. Recent developments include: April 2024: Regional efforts in the Western United States and Canada are gaining momentum as the urgency of combating climate change increases. Plans to link their carbon markets are being drawn up in California, Quebec, and Washington, which could significantly affect trading dynamics. The three authorities intend to work together to create a more extensive carbon credit market as soon as their proposed alliance takes effect., January 2024: The Commodity Futures Trading Commission (CFTC) issued proposed guidance on the listing of voluntary carbon credit (VCC) derivatives contracts on designated contract markets for the public to comment on the proposal.. Key drivers for this market are: Regulatory Mandates and Policies, Growing Corporate Sustainability Initiatives. Potential restraints include: Regulatory Mandates and Policies, Growing Corporate Sustainability Initiatives. Notable trends are: Charting the Course of Carbon Pricing: UK-ETS Post-Brexit.

This statistic represents the value of the global carbon market between 2013 and 2016. In 2016, the carbon market, where CO2 emission certificates like EU allowances and UN certificates are traded, is forecast to reach a value of around 60 billion euros.

Carbon emissions trading by companies

There are various types of emission policies that aim to curb greenhouse gas emissions. The carbon emissions trading or cap and trade, which generally targets carbon dioxide (CO2), is one of the most common methods used around the world. The global carbon market has reached some 48.3 billion euros by 2015. Carbon trading allows a company or country with higher emissions to purchase permits to emit more, while others with lower emissions can trade their emission permits. Over the last few years, the cost of permits have risen which have increased the cost of activities that are greenhouse gas emission-intensive.

In 2010, E.on, a German electric utility company, was one of the largest buyers of UN-certified carbon credits in Europe, totaling some 3.5 million metric tons of carbon dioxide. E.on is one of the largest electric utilities in the world and has a market value of 30.3 billion U.S. dollars as of April 2015. In 2010, some of the other largest carbon credit buyers were mostly companies that operated coal plants or produced steel and iron ore. The coal sector is one of the largest emitters of carbon dioxide. Globally, it released 15.5 billion metric tons in 2015, whereas the natural gas sector released some 6.6 billion metric tons. The carbon offset sales of renewable energy from U.S.-based sources reached 591,800 megawatt hour equivalents in 2010.

Trading of Carbon Credit Market Outlook

The global trading of carbon credit market size was valued at approximately USD 272 billion in 2023 and is projected to reach around USD 1,616 billion by 2032, growing at a CAGR of 18.3% over the forecast period. The primary growth factor driving this market is the increasing emphasis on reducing greenhouse gas emissions globally and stringent governmental regulations on carbon emissions.

The growth of the carbon credit market is primarily driven by the rising awareness and proactive measures taken by governments and private organizations to combat climate change. Countries worldwide are increasingly adopting carbon trading mechanisms as a way to meet their emission reduction targets under international agreements like the Paris Accord. Additionally, large corporations are becoming more conscious of their carbon footprints and are investing in carbon credits to offset their emissions, pushing the market growth further.

Another significant growth driver is the increasing participation of developing countries in carbon trading. As these nations industrialize and urbanize, their carbon emissions are rising. By engaging in carbon trading, they can attract foreign investments and technology transfers while simultaneously working towards sustainable development. This dual benefit is compelling more countries to join the carbon trading market, thereby expanding its reach and impact.

Technological advancements in measuring and verifying carbon emissions are also facilitating the growth of the carbon credit market. Innovations in blockchain and IoT are being leveraged to create more transparent, efficient, and secure systems for carbon credit transactions. These technological improvements are making it easier for companies to track their emissions and trade carbon credits, thus contributing to market expansion.

Voluntary Carbon Offsets for Forestry play a crucial role in the carbon credit market, particularly within the voluntary segment. These offsets are generated through projects that focus on reforestation and afforestation, which not only help in sequestering carbon dioxide but also contribute to biodiversity conservation and habitat restoration. As companies and individuals seek to mitigate their carbon footprints, forestry projects offer a tangible and impactful way to achieve this goal. The demand for such offsets is increasing as more organizations recognize the dual benefits of carbon sequestration and ecosystem preservation. By investing in forestry-based carbon offsets, stakeholders can demonstrate their commitment to sustainability while supporting global efforts to combat climate change.

From a regional perspective, the Asia Pacific region is expected to witness the highest growth rate, driven by rapid industrialization and stringent governmental policies aimed at reducing carbon emissions. North America and Europe are also significant players in the carbon credit market, given their established regulatory frameworks and high participation rates in carbon trading. However, regions like Latin America and the Middle East & Africa are catching up as they increasingly recognize the economic and environmental benefits of participating in the carbon credit market.

Type Analysis

The carbon credit market can be segmented into two main types: Voluntary Carbon Market and Compliance Carbon Market. The Voluntary Carbon Market is driven by companies and individuals who voluntarily purchase carbon offsets to mitigate their carbon footprints. This segment is particularly significant for businesses that aim to demonstrate their corporate social responsibility and commitment to sustainability. The voluntary market is highly dynamic and constantly evolving, with new methodologies and standards being developed to measure and verify carbon offsets more accurately.

On the other hand, the Compliance Carbon Market is mandated by governmental regulations and international agreements. Entities within this segment are required to adhere to specific emission reduction targets and can trade carbon credits to meet their obligations. This market is more structured and regulated, often involving stringent verification processes. The compliance market is particularly robust in regions like the European Union, where the Emission Trading System (ETS) sets the framework for carbon trading.

The Compliance Carbon Market is expec

The voluntary carbon credit market is experiencing robust growth, projected to reach a market size of $1715.5 million in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 20.9%. This expansion is fueled by increasing corporate commitments to net-zero emissions targets and growing consumer awareness of climate change. Key drivers include stringent environmental regulations, heightened investor interest in sustainable investments, and the rising demand for credible carbon offsetting solutions across diverse sectors like renewable energy, waste management, and forestry. The market is segmented by application (personal and enterprise) and type of credit (forest, renewable energy, waste disposal, and others), reflecting the diverse sources of carbon reductions and the varied needs of buyers. North America and Europe currently dominate the market, but significant growth opportunities exist in rapidly developing economies in Asia-Pacific and other regions as sustainability initiatives gain traction globally. The increasing availability of high-quality carbon credits, alongside advancements in verification and monitoring technologies, will further propel market expansion. However, challenges remain, including concerns about the accuracy and permanence of carbon offsets and the need for standardized methodologies to ensure market integrity and transparency. Competition among numerous players, ranging from established consultancies to smaller specialized firms, is intensifying, driving innovation and potentially lowering prices. The forecast period (2025-2033) anticipates continued market expansion, driven by factors such as increasing government support for carbon markets, improved technology for carbon credit generation and tracking, and the growing adoption of carbon pricing mechanisms. The market's evolution will likely be shaped by ongoing debates around carbon credit methodologies, the need for greater transparency and accountability, and the integration of carbon credits into broader sustainability strategies. While uncertainties remain, the long-term outlook for the voluntary carbon credit market remains positive, with strong potential for sustained growth and wider adoption across various sectors and geographies. The increasing demand for credible and impactful offsetting solutions, combined with ongoing technological advancements, will continue to redefine the landscape of this dynamic market.

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Carbon Credit Trading Platform Market Size 2024-2028

The carbon credit trading platform market size is forecast to increase by USD 313.8 billion at a CAGR of 27.77% between 2023 and 2028. The carbon credit trading market is experiencing significant growth due to increasing international sustainability initiatives and stricter environmental rules. As enterprises strive to reduce their carbon footprints and comply with emission regulations, the demand for emission reduction projects and carbon credits is on the rise. Market stability is a key trend, as more businesses recognize the long-term benefits of carbon credit trading. However, a lack of awareness and understanding of the process hinders widespread adoption. Greenhouse gas emissions continue to be a major concern for governments and organizations alike, making the carbon credit trading platform an essential tool for achieving emission reduction targets.

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The global focus on climate change and the adoption of renewable energy sources have led enterprises to prioritize emission reduction targets and environmental responsibility. Carbon credits have emerged as a financial tool to facilitate these efforts, enabling businesses to offset their carbon footprints by investing in emission reduction projects. Carbon capture technologies are gaining traction as essential components of the global transition towards a low-carbon economy. The increasing awareness of the environmental impact of greenhouse gas emissions has driven enterprises to seek sustainable practices and adhere to international sustainability initiatives.

Moreover, net zero goals have become a corporate mindset, with many organizations committing to reducing their carbon emissions in line with environmental regulations. Carbon credits provide a means for businesses to achieve these targets by investing in projects that reduce or remove greenhouse gas emissions from the atmosphere. The market is witnessing significant growth as more enterprises recognize the importance of carbon footprint reduction in their business strategies. Carbon credits offer a flexible and cost-effective solution for organizations to meet their emission reduction targets while supporting sustainable projects. The economic transition towards a low-carbon economy necessitates the adoption of carbon credits as a financial instrument.

Further, renewable energy sources, such as wind and solar power, are increasingly becoming the preferred choice for power generation, reducing the demand for fossil fuels and, consequently, carbon emissions. Carbon credits serve as a crucial financial mechanism in the context of environmental regulations. As governments worldwide implement stricter emission norms, businesses are turning to carbon credits to offset their carbon footprints and ensure compliance with these rules. Sustainability is a key concern for businesses, and carbon credits offer a tangible way to demonstrate environmental responsibility. By investing in emission reduction projects, organizations can reduce their carbon footprints and contribute to global efforts to mitigate climate change.

In conclusion, the market is expected to continue its growth trajectory, driven by the increasing demand for carbon credits from enterprises. The market's expansion is further fueled by the growing awareness of the importance of cybersecurity in the context of carbon credit trading platforms. In conclusion, the market plays a vital role in facilitating the transition towards a low-carbon economy by enabling enterprises to offset their carbon footprints and invest in emission reduction projects. As the global focus on climate change and sustainability intensifies, the demand for carbon credits and carbon credit trading platforms is expected to continue growing.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Voluntary carbon market
  Regulated carbon market


Service Type

  Cap and trade
  Baseline and credit


Geography

  Europe

    Germany
    UK
    Italy


  APAC

    China


  North America

    US


  South America



  Middle East and Africa

By Type Insights

The voluntary carbon market segment is estimated to witness significant growth during the forecast period. In The market, the voluntary segment held the largest share in 2022. This segment's popularity is on the rise as businesses increasingly commit to net zero goals and renewable energy adoption in response to climate change concerns. Voluntary carbon credits enable companies to offset their carbon emissions by investing in projects that reduce or remove greenhouse gas (GHG) emissions. These initiatives not only contribute to the fight against clima

The carbon credit trading platform market is experiencing significant growth, driven by increasing global awareness of climate change and the urgent need for carbon emission reduction. While precise figures for market size and CAGR are absent from the provided data, based on industry reports and observed market trends, we can estimate a 2025 market size of approximately $20 billion, growing at a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This robust growth is fueled by several key drivers: the expanding regulatory landscape mandating carbon emission reductions, the increasing adoption of voluntary carbon markets by corporations aiming to achieve net-zero targets, and the development of innovative technologies improving carbon credit verification and trading efficiency. Furthermore, the emergence of various blockchain-based platforms is enhancing transparency and trust within the market, further accelerating its expansion. However, challenges persist, including price volatility of carbon credits, concerns over the quality and verification of carbon offset projects, and the need for greater standardization across different carbon credit markets. The market's segmentation includes various players, from established exchanges like Nasdaq Inc. and CME Group to specialized platforms such as AirCarbon Exchange and Xpansiv, and emerging players like Climate Impact X and Carbonplace. These platforms cater to diverse needs, ranging from facilitating compliance-based trading to supporting voluntary carbon offsetting initiatives. Geographical distribution is expected to be varied, with North America and Europe initially holding significant market share, but with rapid expansion anticipated in developing economies in Asia and Latin America as they increasingly embrace carbon reduction strategies. The forecast period of 2025-2033 promises continued growth, though the actual rate will depend on the effectiveness of climate policies, technological advancements, and the overall evolution of the global carbon market. This market's trajectory is undeniably positive, signifying a significant step towards a more sustainable future.

According to Cognitive Market Research, the global Carbon Credits Market size will be USD 415695.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 32.60% 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 166278.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 30.8% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 124708.65 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 95609.97 million in 2024 and will grow at a compound annual growth rate (CAGR) of 34.6% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 20784.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.0% 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 8313.91 million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.3% from 2024 to 2031.
The Regulatory Carbon Credits held the highest Carbon Credits Market revenue share in 2024.

Market Dynamics of Carbon Credits Market

Key Drivers for Carbon Credits Market

Rising Corporate Commitment to Sustainability and Carbon Neutrality

Businesses are increasingly committing to sustainability goals, including achieving carbon neutrality and reducing their carbon footprints. Many corporations are adopting voluntary carbon offset programs to meet these goals, driving the demand for carbon credits. This trend is fueled by consumer expectations, corporate social responsibility initiatives, and investor pressure for environmentally sustainable practices. Companies are investing in carbon credits to offset their emissions and enhance their green credentials, which, in turn, stimulates market growth. The alignment of corporate strategies with environmental objectives propels the carbon credits market forward.

Restraint Factor for the Carbon Credits Market

Market Volatility and Uncertainty in Credit Pricing.

Market volatility and uncertainty in carbon credit pricing pose significant challenges for the carbon credits market. Fluctuating prices can result from changes in regulatory policies, market demand, and economic conditions, creating instability for investors and businesses. This unpredictability can deter long-term investment in carbon credits and complicate financial planning for companies looking to offset their emissions. The lack of a standardized global market and variations in credit quality further exacerbate these issues, impacting market confidence and hindering the growth of the carbon credits market.

Impact of Covid-19 on the Carbon Credits Market

The COVID-19 pandemic significantly impacted the carbon credits market. The initial economic slowdown led to reduced industrial activity and lower emissions, temporarily decreasing the demand for carbon credits. Many regulatory schemes faced delays or modifications as governments prioritized economic recovery. However, the pandemic also accelerated interest in sustainability and carbon neutrality, with a growing emphasis on green recovery plans. Increased public and corporate awareness about climate change boosted the demand for voluntary carbon credits. Overall, while the pandemic disrupted market dynamics, it also highlighted the importance of carbon reduction and sustainability in recovery strategies.

Key opportunity of the market-

Increasing Regulatory Initiatives to Reduce Carbon Emissions-

As governments worldwide implement stricter regulations to combat climate change, industries face growing pressure to reduce carbon emissions. Regulatory frameworks such as cap-and-trade systems and carbon taxes require companies to either cut emissions or purchase carbon credits to comply with legal limits. This regulatory push drives demand for carbon credits, creating a robust market for trading and investing in emissions reductions. The tightening of emissions standards and global climate commitments are key factors fueling the growth of the carbon credits market, encouraging businesses to engage in carbon offsetting and sustainability practices. For instance, The European Parliament adopted the European Climate Law to tackle climate ch...

Prices for EU Carbon Permits - Precio De Mercado including live quotes, historical charts and news. EU Carbon Permits - Precio De Mercado was last updated by Trading Economics this June 30 of 2025.

Reducing Emissions from Deforestation and forest Degradation (REDD+) voluntary carbon credit prices fell by ** percent year-over-year in 2024, to *****U.S. dollars per metric ton of carbon dioxide equivalent. Forestry and land use credits are the most common on the voluntary carbon market, with REDD+ accounting for the majority of carbon credit issuances within this category.