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Voluntary Carbon Credit Market Size

Report ID: GMI6937
Published Date: Oct 2023
Report Format: PDF

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Voluntary Carbon Credit Market Size

Voluntary Carbon Credit Market was valued at USD 2.4 billion in 2023 and is set to grow at a rate of over 27% through 2032. Expanding carbon pricing mechanism coupled with increasing demand for corporate sustainability initiatives backed by favorable government policies the major driving factors of business growth. For instance, in October 2023, Government of India announced that the country has 1,451 projects registered or under various stages of consideration at the world’s two leading carbon registries, which will complement the industry scenario.

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Rising Demand for Nature-Based Solutions including reforestation, afforestation, and sustainable land management projects, are gaining prominence in the market. These projects sequester carbon and offer co-benefits like biodiversity conservation and ecosystem restoration. In addition, advancements in technology, particularly in data analytics and blockchain, are enhancing transparency and traceability in carbon credit trading. Blockchain, in particular, is being used to create immutable records of carbon credits, reducing the risk of double-counting or fraud, thereby fostering the business outlook.

Voluntary Carbon Credit Market Report Attributes
Report Attribute	Details
Base Year:	2023
Voluntary Carbon Credit Market Size in 2023:	USD 2.4 Billion
Forecast Period:	2024 - 2032
Forecast Period 2024 - 2032 CAGR:	27%
2032 Value Projection:	USD 21.7 Billion
Historical Data for:	2019 - 2023
No. of Pages:	290
Tables, Charts & Figures:	348
Segments covered:	End Use, & Region
Growth Drivers:	Rising biodiversity and conservation goals Growing number of carbon standards Government policies and regulations
Pitfalls & Challenges:	Lack of awareness & quality concerns

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Rising social & environmental impact along with increasing government policies & regulations will proliferate the business expansion over the coming years owing to investors and consumers placement of a premium on the social and environmental impact of carbon credit projects. Projects that deliver broader environmental and social benefits are attracting greater attention and investment. In addition, government policies, incentives, and regulations continue to shape the voluntary carbon credit market. The introduction of new policies and regulatory frameworks can have a profound impact on supply and demand dynamics.

Authors: Ankit Gupta, Shashank Sisodia

Frequently Asked Questions (FAQ) :

The market valuation of voluntary carbon credit was surpassed USD 2.4 billion in 2023 and is set to expand at over 27% CAGR from 2024 to 2032, driven by the expanding carbon pricing mechanism coupled with increasing demand for corporate sustainability initiatives backed by favorable government policies.

Voluntary carbon credit market size from the forestry and land-use end-use segment is poised to witness more than 27.9% growth rate between 2023 and 2032, owing to the ongoing afforestation and reforestation efforts.

Asia Pacific market for voluntary carbon credit will expand at over 31.5% CAGR from 2023 and 2032, attributed to the surging renewable energy investments, particularly in solar and wind projects.

Some of the top voluntary carbon credit industry players are Carbon Trust, Climate Impact Partners, South Pole, 3Degrees, VERRA, TerraPass, CarbonClear, Shell, Microsoft, PwC, EcoAct, ClimeCo LLC., Ecosecurities, ALLCOT, Atmosfair, and The Carbon Collective Company.