Market Overview:
The Global Carbon Credit Market is estimated to be valued at US$ 25.35 Bn in 2023 and is expected to exhibit a CAGR of 24.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Carbon credits are tradable permits that represent the right to emit one tonne of carbon dioxide or an equivalent greenhouse gas. These credits are used as a market-based approach to reduce greenhouse gas emissions. The market for carbon credits is driven by the increasing awareness and initiatives towards environmental sustainability and the need for organizations to offset their carbon emissions.
Market Dynamics:
The Global Carbon Credit Market is primarily driven by two key factors. Firstly, government regulations and policies aimed at reducing greenhouse gas emissions are creating a significant demand for carbon credits. Several countries, including the major economies, have implemented cap-and-trade systems or carbon pricing mechanisms, which require companies to buy carbon credits to offset their emissions. This has led to a growing market for carbon credits globally.
