The Global Carbon Credit Market is estimated to be valued at US$ 31.54 Bn in 2023 and is expected to exhibit a CAGR of 24.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The carbon credit market involves trading of carbon credits that provide permission to emit one tonne of carbon dioxide or equivalent of greenhouse gases. Carbon credits are generated by greenhouse gas reduction projects and activities that reduce or remove emissions from the atmosphere. The carbon credits are traded in the marketplace to buyers who want to neutralize or offset their own emissions. The carbon credit trading helps companies and governments around the world to meet their emission targets cost effectively.

Market key trends:
The increasing awareness about climate change and global warming has led governments around the world to set ambitious emission reduction targets. This, in turn, has boosted the demand for carbon credits from various industries and businesses. Moreover, transition towards renewable energy sources has accelerated worldwide to mitigate climate change impacts. Converting to renewable energy technologies like solar and wind provides opportunities for carbon emission offsets and credits. Many countries have also implemented carbon pricing mechanisms through carbon taxes or emission trading schemes that mandate emission cuts and drive the carbon credit demand. Adoption of net-zero emission goals by leading companies focusing on becoming carbon neutral is another major trend fueling growth of the carbon credit market.

Porter’s Analysis
Threat of new entrants: The global carbon credit market has High barrier for new entrants due to strong regulation, well-established market players and high initial investment required.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes like renewable energy credits and emission reduction credits. However, the demand for carbon credits is growing rapidly.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative suppliers of carbon credits especially from developing nations.

Threat of new substitutes: Threat from new substitutes like renewable energy credits is low as carbon credits serve unique purpose of offsetting carbon emissions.

Competitive rivalry: Intense rivalry among existing players.

SWOT Analysis
Strength: Growing awareness about climate change driving demand for carbon credits. Wide geographic presence allows easy access to carbon offset projects globally.

Weakness: Volatility in carbon credit prices poses risk. Seasoned expertise needed for niche business of carbon trading.

Opportunity: Developing nations present large untapped market. Carbon credit demand to surge with stringent regulations on greenhouse gas emissions.

Threats: Alternate solutions like afforestation, renewable energy adoption can dampen carbon credit demand. Economic slowdowns impact investment in carbon offset projects.

Key Takeaways
Global Carbon Credit Market Demand is expected to witness high growth, exhibiting CAGR of 24% over the forecast period, due to increasing regulations to curb greenhouse gas emissions.

Asia Pacific dominates the carbon credit market currently due to large manufacturing base and coal-based power generation in China and India. North America follows Asia Pacific in the carbon credit market led by growing awareness. Europe holds significant share with robust policies. Developing regions like Latin America and Middle East & Africa offer lucrative opportunities for future growth.

Key players operating in the carbon credit market are WGL Holdings, Inc., Enking International, Green Mountain Energy, Native Energy, Cool Effect, Inc., Clear Sky Climate Solutions, Sustainable Travel International, 3 Degrees, terrapass, and Sterling Planet, Inc.

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