Carbon Credits Market Analysis 2025-2034: Industry Size, Share, Growth Trends, Competition and Forecast Report
According to OG Analysis, a renowned market research firm, the Global Carbon Credits Market was valued at USD 463 Billion in 2024. The market is projected to grow at a compound annual growth rate (CAGR) of 34.52%, rising from USD 616.6 Billion in 2025 to an estimated USD 9172.2 Billion by 2034.
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Carbon Credits Market Overview
The carbon credits market is rapidly expanding as global efforts to combat climate change drive demand for scalable mechanisms to reduce and offset greenhouse gas (GHG) emissions. Carbon credits, also known as carbon offsets, represent one metric ton of CO2-equivalent emissions reduced, avoided, or removed from the atmosphere. These credits can be traded in compliance markets-regulated by government cap-and-trade programs-or voluntary markets, where companies and individuals purchase credits to meet sustainability goals. Compliance markets are led by frameworks like the European Union Emissions Trading System (EU ETS), California Cap-and-Trade, and China’s national ETS, with participation from heavy-emitting sectors such as energy, manufacturing, aviation, and transport. Voluntary carbon markets are growing swiftly, driven by corporate net-zero pledges, ESG commitments, and pressure from investors and stakeholders to decarbonize supply chains. Projects that generate carbon credits include reforestation, afforestation, renewable energy installations, methane capture, carbon farming, and direct air capture technologies. Verified standards, such as Verra’s VCS, Gold Standard, and the Climate Action Reserve, ensure the quality, permanence, and additionality of offsets. North America and Europe dominate in market value, while regions like Latin America, Southeast Asia, and sub-Saharan Africa are emerging as key sources of nature-based offset projects. As climate policies tighten and carbon pricing expands globally, carbon credits are becoming a critical financial instrument for emissions compliance and corporate climate strategy.
The market is also being reshaped by advancements in digital verification, satellite monitoring, blockchain for traceability, and AI-driven project validation tools. These technologies aim to improve transparency, credibility, and scalability of carbon credit systems-addressing long-standing concerns about greenwashing and the legitimacy of offset claims. Increasing collaboration among regulators, standards bodies, financial institutions, and environmental organizations is promoting interoperability, standardized methodologies, and unified carbon registries. Meanwhile, the Taskforce on Scaling Voluntary Carbon Markets (TSVCM) and other global initiatives are working to professionalize and expand voluntary markets to meet rising global demand. Investor interest is also growing, with carbon credits being integrated into climate finance portfolios, derivatives markets, and exchange-traded funds (ETFs). Corporations are no longer viewing offsets as a last resort, but rather as part of a multi-tiered decarbonization strategy alongside internal emission reductions. However, challenges persist, including price volatility, supply constraints, double counting risks, and disparities in verification protocols. As the market matures, carbon credits are expected to evolve from fragmented, project-based instruments to high-integrity, globally fungible assets that support national carbon budgets and Article 6 of the Paris Agreement. The future of the carbon credit market lies in aligning environmental integrity with financial credibility, unlocking billions in climate capital, and accelerating global progress toward net-zero and climate resilience.
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Key Carbon Credits Market Companies Analysed in this Report include –
South Pole
Climate Impact Partners
Bluesource
EcoAct
3Degrees
Finite Carbon
Carbonfund
ClimatePartner
Terrapass
Carbon Credit Capital
Moss Earth
Native Energy
ClearSky Climate Solutions
Enking International (EKI Energy Services Ltd.)
ClimeCo
Key Insights from the report –
Surge in Corporate Net-Zero Commitments
Companies across sectors are increasingly purchasing carbon credits to meet voluntary climate goals.
Offsets are being used to address Scope 1, 2, and even Scope 3 emissions.
This trend is accelerating demand in voluntary carbon markets globally.
Growth of Nature-Based Solutions
Reforestation, afforestation, and soil carbon sequestration projects are gaining prominence.
These credits are favored for their co-benefits, such as biodiversity conservation and community impact.
Nature-based solutions are attracting significant interest from ESG-focused investors.
Technological Innovation in Verification and Monitoring
AI, blockchain, and satellite imaging are being deployed to validate, track, and ensure credit integrity.
These tools enhance transparency, reduce fraud, and speed up verification timelines.
Tech-enabled MRV (Measurement, Reporting, and Verification) is becoming a market standard.
Emergence of Carbon Credit Exchanges and Tokenization
Digital platforms and exchanges are improving liquidity, pricing transparency, and accessibility.
Tokenized carbon credits are being developed for faster, fractional trading in carbon markets.
This supports institutional participation and financial product innovation.
Integration with National Climate Goals and Article 6
Governments are beginning to align voluntary credits with compliance frameworks and NDCs.
Article 6 of the Paris Agreement is driving interest in internationally transferable mitigation outcomes (ITMOs).
Public-private coordination is key to creating a high-integrity global carbon market.
Increasing Scrutiny and Demand for High-Quality Offsets
Stakeholders are demanding credits that meet stringent standards for permanence, additionality, and co-benefits.
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Get an In-Depth Analysis of the Carbon Credits Market Size and Market Share split –
by Type
– Compliance
– Voluntary
by Project Type
– Avoidance/Reduction Projects
– Removal/Sequestration Projects
End-use
– Power
– Energy
– Aviation
– Transportation
– Buildings
– Industrial
– Others
By Geography
– North America (USA, Canada, Mexico)
– Europe (Germany, UK, France, Spain, Italy, Rest of Europe)
– Asia-Pacific (China, India, Japan, Australia, Vietnam, Rest of APAC)
– The Middle East and Africa (Middle East, Africa)
– South and Central America (Brazil, Argentina, Rest of SCA)
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