Carbon offset/carbon credit trading service refers to any certificate, which sets the limit for the emission of carbon dioxide or the equivalent amount of greenhouse gases. They are the credits received to decrease its carbon footprint. It is the removal of various greenhouse gases such as methane, carbon dioxide, perfluorocarbons, sulfur hexafluoride, and nitrous oxide. It is the market where trading of credits allows a limit of carbon dioxide. Carbon credits are given in the attempt to curb the excess concentrations of greenhouse gases.
Adoption of new and innovative technologies is set to pose opportunities for the market. Increasing government initiatives and investments for curbing pollution. Various benefits associated with green technology and also benefits associated with the green technology has been facilitating market growth. There have been various industries that have been demanding green technology. Increasing medical concerns and health awareness have been supporting the growth of the service.
Governments in various regions have been focusing on the minimization of carbon emissions. Growth in carbon footprint management solutions has led to growth for the market. International organizations have set limits on temperature, which has set the demand for carbon offset/carbon credit trading services. High investments in such prospects will push the growth for such services.
According to the study by Business Research Insights, the global market for carbon offset/carbon credit trading service was valued at USD 208.9 million in 2021 and is estimated to reach USD 197.9 million in 2028 billion with a CAGR of -0.8% during 2022-2028.
The key Market Players listed are as follows:
- Carbon Credit Capital
- Renewable Choice
- South Pole Group
- Allcot Group
- Aera Group
- Forest Carbon
- Carbon Clear
- Forest Carbon
- Guangzhou Greenstone
Market players of the company have been investing in carbon credits. In October 2022, Saudi Aramco have bought most carbon credits. Future Investment Initiative (FII) held the auction for 1.4 million tons of carbon credits. With Aramco’s sustainability goals, the company has invested in most carbon credits.
The pandemic of COVID-19 affected various markets and industries. The outbreak observed disruptions in business activities there was a reduction in demand for carbon footprint management solutions. But on the contrary, there was a reduction in carbon footprints which positively impacted the environment. Strict rules and regulations, social distancing norms, and halt on operations activities. The economic activities were back on and witnessed a resume post-pandemic which also saw the start of business activities and also demand for carbon footprint management solutions.
Rising Health Awareness and Preference for Pollution-Free Environment
Increasing demand for carbon offset/carbon credit trading services is growing due to propelling health awareness. There has been a preference and demand for a pollution-free environment amongst all groups of the population. Health problems and concerns amongst people have fueled the demand for carbon credits. An increasing number of medical diseases such as diseases related to the respiratory tract and also other medical complications due to excessive concentration of carbon dioxide in nature.
Rising Energy Demand from Various Industries and Setting Carbon Limits
Global demand for energy from various industries has led to the need for setting carbon limits. The industrial sector is responsible for the high demand for energy and consumption of energy. The majority of the energy is consumed by manufacturing sectors which is also increasing rapidly. Coal-powered sources of energy are utilized for many energy requirements. Governments and industries have adopted many carbon footprint management solutions is set to drive market growth.
Government Initiatives and Investments to Curb Pollution
The increasing number of government investments and initiatives anticipates growth for the market. Serious environmental damages caused by pollution has led to an imbalance in the nature. Increasing industrialization and urbanization has led to unbalanced production of carbon. Various countries and region have set tax limits to balance the carbon imbalances. Such increasing investments and policies have offered scope and opportunities for various countries. Investments and initiatives regarding the service is set propel the market course.
Effects to minimize the global warming by controlling carbon emissions is set to propel the demand for carbon footprint management solutions. Governments of regional and international organizations have set the limits on the temperatures.