Carbon Credit Market Set to Reach $84 Billion by 2050 Driven by Climate Action and Tightening Regulations
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The global carbon credit market is projected to reach $84.4 billion by 2050, growing at a CAGR of 18% from 2023-2050. This growth is driven by increasing carbon emissions, the need for climate action, and more carbon pricing mechanisms.
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Europe currently dominates the global carbon credit market with a 51.1% share. The top 5 players collectively hold over 37% of market revenue.
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Key trends shaping the market include the growth of voluntary carbon markets, a focus on carbon removal projects, and government regulations and corporate sustainability goals driving demand.
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Challenges include scaling up supply to meet surging demand and ensuring the quality and integrity of carbon credits.
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By 2050, nature-based carbon removal solutions could account for a $50 billion voluntary carbon market, indicating the importance of reforestation and similar projects.