SkyQuest Technology Group has released a new study on the carbon credits market. This report covers everything from the current market overview to future projections. Essentially, carbon credits are permits that allow individuals or businesses to offset their carbon emissions. One credit represents the removal of one ton of carbon dioxide from the atmosphere.
The carbon credits market is booming. It was valued at nearly $480 billion in 2023 and is expected to skyrocket to about $970 billion by 2032, marking a compound annual growth rate (CAGR) of 39.4% from 2025 to 2032.
Several organizations oversee the regulation of these credits, including the American Carbon Registry and the UN Clean Development Mechanism. The revenue from selling carbon credits supports various projects aimed at reducing emissions. This funding is crucial for global efforts to combat climate change.
Most of the growth is expected in the Asia-Pacific region, which has seen a surge in sustainability initiatives. For example, Japan launched its first carbon emissions trading exchange in May 2022, a significant move for the area. North America also plays a vital role, actively establishing carbon markets and pricing mechanisms.
In recent news, India’s Ministry of Power announced a carbon credit trading scheme aimed at reducing greenhouse gas emissions. Meanwhile, the World Bank introduced initiatives to boost global carbon markets, benefiting countries that conserve forests.
Experts suggest that the rise in demand for carbon credits may lead to increased innovation and economic opportunities in various sectors. As the world grapples with climate change, the importance of carbon credits as a tool for sustainability cannot be overstated.
For more in-depth information, check out the SkyQuest Carbon Credits Market Report.
