Carbon Credit Market Segmentation:
Type (Voluntary, Compliance)
In terms of type, the compliance segment is anticipated to account for more than 96.9% carbon credit market share by the end of 2035, due to legally mandated emission control practices. Increased participation from public authorities, governments, and other entities to achieve compliance with the commenced standards is inflating the investment in this segment. According to a PIB report published in July 2024, the administrator of CCTS, the BBE is focusing on determining the integrity of carbon projects. They are contributing to set growth in this segment by educating verification agencies to bring clarity to compliance-based trading. Such initiatives are inspiring more private leaders to purchase carbon credit while complying with government-set limits.
End use (Agriculture, Carbon Capture & Storage, Chemical Process, Energy Efficiency, Industrial, Forestry & Landuse, Renewable Energy, Transportation, Waste Management)
Based on end use, the carbon credit market is estimated to register significant growth for the forestry & landuse segment by 2035. Global efforts to mitigate climate change due to emissions are inflating the segment to grow. As trees are one of the excellent natural CO2 absorbers, forestry is considered to be a valuable tool for reduction projects. Afforestation, reforestation, forest conservation, and preventing deforestation are the key methodologies of this segment. Companies are focusing on developing new standards for qualifying reforestation for credit generation. For instance, in July 2024, VERRA launched the new market label, ABACUS to secure the quality of carbon credits from ecosystem restoration and reforestation projects.
Our in-depth analysis of the global carbon credit market includes the following segments:
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