The value of the global carbon market reached a record high of 881 billion euros (949 billion U.S. dollars) in 2023. The European Union's Emissions Trading System (EU ETS) was the world's most valuable market that year, with a share of 87 percent of the global carbon market size. The United Kingdom ETS, which launched in 2021, accounted for the second-largest share of the global market value in 2023, at four percent.

The value of the global carbon market increased two percent in 2023, to record high of 881 billion euros (949 billion U.S. dollars). The European Union Emission Trading System is the largest carbon market based on value, accounting for roughly 87 percent of the global market size in 2023. Carbon trading is the purchase and sale of credits that allow a company or entity, such as a power plant, to emit a certain amount of carbon dioxide.

Voluntary carbon credit market size is estimated to grow from USD 1.1 billion in 2024 to USD 1.6 billion in 2025 and USD 47.5 billion by 2035, at a CAGR of 40%

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.

Carbon Offset Market holds a forecasted revenue of USD 666.83 Bn in 2025 & is likely to cross USD 2,922.01 Bn by 2032, with steady annual growth rate of 23.5%.

The global voluntary carbon offset market size shrank 61 percent in 2023. The value of traded carbon credits that year was 723 million U.S. dollars, compared with 1.9 billion U.S. dollars the previous year. As of 2023, the cumulative value of the voluntary carbon market was roughly 10.8 billion U.S. dollars. Many major companies around the world use voluntary carbon offsets as a way of reaching net-zero emissions and achieving their climate goals.

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...

According to Cognitive Market Research, the global voluntary carbon offset market size is USD XX million in 2024 and will expand at a compound annual growth rate (CAGR) of 5.20% from 2024 to 2031.

North America held the major market of around 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.4% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD XX million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.
Latin America market of around 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.9% from 2024 to 2031.
The sales of renewable energy are poised to surge due to growing environmental awareness, government incentives, technological advancements, and increasing demand for clean, sustainable power sources to combat climate change effectively.
Sales in the energy industry are expected to rise as industries seek more efficient and sustainable power solutions, coupled with increasing global demand for energy amidst economic growth and technological advancements.

Stringent Regulations and Incentives from Governments to Increase the Sales Globally

Stringent regulations and incentives from governments worldwide are playing a pivotal role in driving the sales of carbon offsets on a global scale. Governments are enacting laws and regulations aimed at reducing carbon emissions to combat climate change effectively. These regulations often include mandatory emission reduction targets for industries, which drive companies to seek carbon offset solutions to meet compliance requirements. Additionally, governments are offering various incentives such as tax breaks, grants, and subsidies to encourage businesses to invest in carbon offset projects. These incentives not only alleviate the financial burden of implementing carbon reduction measures but also stimulate market growth by making carbon offset projects more economically viable. Overall, the combination of regulatory pressure and government incentives creates a conducive environment for the proliferation of the voluntary carbon offset market, fostering sustainable development and environmental stewardship on a global scale.

Rising Environmental Awareness to Propel the Market

Rising environmental awareness is a significant driver propelling the voluntary carbon offset market forward. As concerns about climate change and environmental degradation intensify, individuals, businesses, and communities are increasingly acknowledging the urgent need for action. This heightened awareness prompts a shift in consumer preferences and corporate behaviours towards more sustainable practices. Consumers are actively seeking products and services from companies with strong environmental commitments, pushing businesses to adopt carbon offsetting strategies to mitigate their carbon footprints and enhance their brand reputation. Moreover, increased awareness fosters greater public support for government policies and initiatives aimed at curbing carbon emissions, thereby creating a more favourable regulatory environment for carbon offset projects. Overall, rising environmental consciousness is catalysing demand for voluntary carbon offsets as individuals and organizations strive to make a positive impact on the planet, driving market growth and fostering a transition towards a more sustainable future.

Lack of Transparency to Pose a Barrier

The lack of transparency poses a significant barrier to the voluntary carbon offset market. Concerns about the integrity and credibility of carbon offset projects, including issues such as additionally, verification, and the legitimacy of carbon credits, can erode trust among potential buyers and investors. Without clear and standardized reporting mechanisms and verification processes, stakeholders may hesitate to engage in carbon offset transactions due to uncertainty about the environmental impact and effectiveness of these projects. Moreover, the absence of transparent informat...

The Activated Carbon Market is predicted to rise to USD 4,500 million by 2028, witnessing 9.3% CAGR during 2021-2028

The spin-on-carbon market generated revenue of USD 270.7 million in 2024, which is expected to witness a compound annual growth rate of 30.3% during 2024-2030.

Carbon Verification Market is growing at a CAGR of 26% over the next 7 years. DNV, SGS SA, Bureau Veritas, TÜV NORD GROUP, Intertek Group plc., Carbon Trust, First Environment, Inc., ERM Certification and Verification Services, NSF International, UL LLC, Cotecna, SCS Global Services, KPMG International Cooperative, Deloitte Touche Tohmatsu Limited, and PwC are the major companies operating in this market.

The Activated Carbon Market report segments the industry into By Product Type (Powdered Activated Carbons (PAC), Granular Activated Carbons (GAC), Extruded or Pelletized Activated Carbon), By Application (Gas Purification, Water Purification, and more), By End-user Industry (Water Treatment, Food and Beverage, and more), and By Geography (Asia-Pacific, North America, and more).

According to Future Market Insights, the global carbon offset platform market size had reached US$ 58.8 million in 2018. Demand for carbon offset platform recorded Y-o-Y growth of 17.9% in 2022, and thus, the global market is expected to reach US$ 133.1 million in 2023. Over the projection period 2023 to 2033, carbon offset platform solutions sales in the region are projected to exhibit 19.7% CAGR and total a market size of US$ 806.1 million by 2033-end.

Attributes	Details
Carbon Offset Platform Market Size (2023)	US$ 133.1 million
Carbon Offset Platform Market Projected Size (2033)	US$ 806.1 million
Value CAGR (2023 to 2033)	19.7%

Country-Wise Insights

Country	The United States
Market Size (US$ million) by End of Forecast Period (2033)	US$ 87.9 million
CAGR % 2023 to End of Forecast (2033)	25.9%

Country	The United Kingdom
Market Size (US$ million) by End of Forecast Period (2033)	US$ 91.9 million
CAGR % 2023 to End of Forecast (2033)	28.4%

Country	China
Market Size (US$ million) by End of Forecast Period (2033)	US$ 83.0 million
CAGR % 2023 to End of Forecast (2033)	26.6%

Country	Germany
Market Size (US$ million) by End of Forecast Period (2033)	US$ 71.7 million
CAGR % 2023 to End of Forecast (2033)	23.5%

Country	India
Market Size (US$ million) by End of Forecast Period (2033)	US$ 68.5 million
CAGR % 2023 to End of Forecast (2033)	28.0%

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 United States activated carbon market size reached approximately USD 425.71 Million in 2024. The market is estimated to grow at a CAGR of 4.20% in the forecast period of 2025-2034, reaching a value of around USD 642.38 Million by 2034.

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 size and share of this market is categorized based on Type (Isotropic Glassy Carbon, Anisotropic Glassy Carbon) and Application (Electronics, Aerospace, Energy, Biomedical, Metallurgy) and End-User Industry (Automotive, Healthcare, Telecommunications, Chemical, Defense) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).

Europe had the highest valued carbon market worldwide in 2022, at 751 billion euros. This accounted for nearly 87 percent of the global carbon market value that year, which increased to 865 billion euros. North America accounted for the second largest share of the total value in 2022, with a market size of 62.7 billion euros.

The size and share of this market is categorized based on Compliance Carbon Market (Cap-and-Trade Systems, Regulatory Frameworks, Carbon Pricing Mechanisms, Offset Projects, Verification Standards) and Voluntary Carbon Market (Corporate Sustainability Initiatives, NGO and Community Projects, Carbon Footprint Reduction Programs, Project-based Offsetting, Marketplace Platforms) and Carbon Credit Types (Renewable Energy Credits, Forestry and Land Use Credits, Methane Capture Credits, Industrial Emissions Credits, Agricultural Credits) and geographical regions (North America, Europe, Asia-Pacific, South America, Middle-East and Africa).

The global carbon credit market size was worth more than USD 120.2 billion in 2024 and is poised to witness a CAGR of over 14.9%, crossing USD 731.25 billion revenue by 2037. Compliance segment is projected to hold 96.9% industry share, fueled by legally mandated emission control practices and growing compliance-based investments.