Forestry Landuse Carbon Credit Market Analysis

Type (Voluntary, Compliance)

The voluntary segment is predicted to account for 60% share of the global forestry & landuse carbon credit market during the forecast period. Similar to the compliance segment, the voluntary segment focuses on influencing the total reduction of emissions. This need is influenced by a growing consciousness regarding the environment. Voluntary carbon credits offer a channel for entities to examine their dedication to sustainability and environmental management further than regulatory requirements. Therefore, as the intensity of awareness about climate change grows, the necessity for voluntary forestry and land use carbon credits rises, further encouraging market revenue to grow.

Type (Voluntary, Compliance)

The compliance segment in the forestry & landuse carbon credit market is also set to have significant growth in the revenue during the forecast period. Compliance markets are developed and operated by mandatory national, regional, or international carbon reduction programs. Generally, commune to as cap-and-trade markets or emission trading systems (ETS), these are markets in businesses within capped sectors, that are required to not exit than their regulated greenhouse gas (GHG) emissions cap. If the emission crosses the cap, the organization must offset by reducing the emissions in order places, with such transactions happening within the compliance market. Moreover, various regulations have been launched by several countries to influence compliance. For instance, regulated entities are presently allowed to offset only over 3% of their emissions under the California Cap-and-Trade Program, to achieve total compliance, and close to 49% of those offset credits should essentially come from projects that benefit California directly.

Our in-depth analysis of the global market includes the following segments: