Carbon Offset or Carbon Credit Trading Service Market Size, Share, Growth, and Industry Analysis, By Type (REDD Carbon Offset, Renewable Energy and Landfill Methane Projects), By Application (Industrial, Household and Energy Industry), and Regional Forecast to 2033
Trending Insights

Global Leaders in Strategy and Innovation Rely on Our Expertise to Seize Growth Opportunities

Our Research is the Cornerstone of 1000 Firms to Stay in the Lead

1000 Top Companies Partner with Us to Explore Fresh Revenue Channels
CARBON OFFSET OR CARBON CREDIT TRADING SERVICE MARKET OVERVIEW
The global Carbon Offset or Carbon Credit Trading Service Market was valued at USD 0.38 billion in 2024 and is expected to grow to USD 0.47 billion in 2025, reaching USD 2.38 billion by 2033, with a projected CAGR of 22.53% from 2025 to 2033.
Carbon offsets and carbon credits trading service are tools aimed at reducing greenhouse gas (GHG) emissions, but they function in different markets and serve distinct purposes. A carbon offset is part of a voluntary carbon market, where individuals or businesses can take action to balance their emissions by supporting projects such as reforestation, renewable energy, methane capture and energy efficiency. An offset allow participants to meet sustainability goals such as carbon neutrality that has been verified by top standards organizations. They support renewable projects and other forms of environmental progress, particularly in developing nations and also assist in saving wildlife, cleaning the environment and improving communities.
Carbon credits act as tradable permits in regulated markets to ensure companies comply with emissions targets. To manage emissions, governments limit the total amount and assign several carbon credits, with each of them worth a metric ton of CO₂. Companies can receive these credits either by allocation or by taking part in an auction. If a firm’s emissions fall below its limit, it is allowed to sell its extra credits to entities that exceed their allocations. Through this approach, investments are made in areas where it is most affordable to address pollution. It also encourages advances in new clean energy systems, aiding efforts to curb climate change and reduce emissions for future.
COVID-19 IMPACT
Pandemic disrupted the sectors and severely affected the market
The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.
Due to the pandemic, important sectors such as aviation and tourism decreased their demand for carbon credits, leading the market to crash. Besides reducing incentives for curbing emissions, this event revealed how fragile the market could be. As the economy suffered from COVID-19, many began to question whether carbon markets could commit to meaningful action on climate for the long term. They showed that climate programs based on markets could be easily disrupted by major world issues and raise questions about their future reliability.
LATEST TREND
Strong market shift toward higher-quality and integrity to drive the market
Shift toward high-quality and integrity has become a defining trend in carbon offset and carbon credit trading services. As awareness around climate accountability grows, buyers are no longer focused solely on cost but are actively seeking high-quality, verifiable credits. Credits rated by reputable agencies and certified under rigorous standards are now in higher demand. Organizations are willing to pay a premium for projects that not only ensure real and additional emission reductions but also offer strong co-benefits such as biodiversity preservation and community development. This shift reflects a growing emphasis on transparency, environmental integrity and long-term climate impact in carbon market participation.
CARBON OFFSET OR CARBON CREDIT TRADING SERVICE MARKET SEGMENTATION
BY TYPE
Based on type, the global market can be categorized into REDD Carbon Offset, Renewable Energy and Landfill Methane Projects
- REDD Carbon Offset: REDD carbon offset work to reduce emissions by stopping deforestation and encouraging the sustainable use of forests. There are incentives given to encourage forest conservation, helping to control carbon dioxide levels and the climate. They help improve the living standards and land claims of those in affected areas. Particularly, REDD supports biodiversity by maintaining important ecosystems. Communities’ involvement and better government play a vital role in their success.
- Renewable Energy: Renewable energy projects that carbon offset prevent from burning fossil fuels to using wind, solar, hydro or biomass sources. They encourage the transition towards using cleaner energy and the construction of sustainable infrastructure. They support job growth, strengthen local economies and provide energy for remote areas. By investing in them, organizations can fulfill their sustainability objectives. Investing in renewable energy offsets is commonly done to demonstrate dedication to climate action.
- Landfill Methane Projects: Landfill methane projects collect methane produced during waste decomposition so it doesn’t enter the air. They cut down on climate change by either using methane as a source of energy or burning it without harm. Electricity or heat power is produced from the captured gas, resulting in a lessened dependence on fossil fuels. They enhance air quality, lessen the problems caused by odors and support the health of all citizens. They encourage sustainability in waste management and help safeguard the environment.
BY APPLICATION
Based on application, the global market can be categorized into Industrial, Household and Energy Industry
- Industrial: Industrial carbon offset and credit trading services reduce emissions from manufacturing and processing operations. Companies invest in energy-efficient upgrades, cleaner technologies or offset projects to meet regulations. Participation showcases environmental responsibility and improves brand reputation. These efforts also help manage carbon footprints and cut operational costs. Industrial offsetting promotes new ideas and helps achieve lasting sustainability goals.
- Household: Household carbon offset programs can decrease the emissions generated by the daily cooking and heating activities. They use clean cooking stoves, bio-gas systems and solar panels as alternatives to traditional heating methods. These efforts help families breathe cleaner air, stay healthier and save energy. They also empower households to take part in climate action and enjoy better living standards. Household offsetting supports community development and education.
- Energy Industry: The energy industry uses carbon offset and credit trading to shift from fossil fuels to renewables. Companies earn credits by reducing emissions and supporting clean energy integration. These actions help meet regulations and sustainability goals. Offsetting improves air quality, cuts health risks and drives green innovation. The industry’s role in carbon markets boosts the global low-carbon transition.
MARKET DYNAMICS
Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.
DRIVING FACTORS
Corporate net-zero commitments to boost the market
Corporate net-zero commitments are significantly boosting demand for carbon offset and carbon credit trading service market growth. With more companies and governments setting net-zero targets, they are choosing these schemes to help them reduce their carbon emissions. Although reducing pollution directly is vital, many organizations also use offsets and credits to offset emissions that are still present now. As a result of the higher pledges, there is now more focus on reliable and upfront offset projects that genuinely help the environment. Carbon market involvement gives corporations a chance to fulfill their climate targets, show they care about the environment, boost their company’s image and respond to those who require sustainable practices.
Regulatory frameworks and policies to expand the market
Stringent regulations in the carbon market encourage companies to engage in carbon credit trading. In many countries, governments have introduced emissions trading, imposed carbon pricing and require companies to comply with laws matching agreements. The regulations include goals that reduce emissions and limits for companies to follow. If the limits are surpassed, businesses may have to buy carbon credits. Carbon credit trading platforms allow companies to comply with regulations while saving money. By operating in these markets, companies ensure they follow regulations, prevent penalties and help achieve climate goals.
RESTRAINING FACTOR
Social and environmental risks to hinder the market
Social and environmental risks present significant hindrance in carbon offset and credit trading services. Several offset projects have been viewed negatively because they led to indigenous populations and local communities being relocated without being properly informed or asked for their consent. When stakeholders are not involved well and benefits are not shared fairly, existing inequalities can get worse and may harm the environment. They damage the reputation of carbon markets and lead to doubts about the sustainability of various projects. Tackling these issues calls for carbon trading services to implement tight social safeguards, encourage communities to participate openly and focus on making climate solutions both fair and effective.
OPPORTUNITY
Technological innovation and improved infrastructure to create market opportunity
Technological innovation and improved market infrastructure are transforming carbon offset and credit trading services by boosting transparency, traceability and efficiency. The adoption of blockchain and digital platforms helps securely track credit issuance and trading, significantly reducing risks of fraud and double counting. With these technologies, every carbon credit can be easily identified and monitored, making the market more trustworthy. Moreover, technology developments in capturing and monitoring carbon have enabled the growth of carbon credits that now qualify a wider range of projects. With this expansion, the market can explore more novel climate strategies, adapting as the world’s demand for verified reductions rises.
CHALLENGE
Additionality and leakage concerns to challenge the market
Additionality and leakage issues are still important challenge in carbon offset and credit interactions. Additionality is necessary to ensure that carbon financing is truly reducing climate emissions or removing them. However, when “avoided emissions” are used instead of actual reductions or removals, it can weaken the environmental goals of a project. Leakage where emissions are simply displaced to another location rather than eliminated further diminishes a project’s effectiveness. Addressing these issues requires robust verification standards, transparent methodologies and ongoing monitoring to maintain trust in carbon markets and ensure that traded credits deliver real, measurable and permanent emission reductions.
CARBON OFFSET OR CARBON CREDIT TRADING SERVICE MARKET REGIONAL INSIGHTS
-
NORTH AMERICA
In North America, the United States is experiencing a surge in carbon credit trading because of both California’s Cap-and-Trade and RGGI regional action, as well as increased voluntary activity. Companies aiming for net-zero and investing in sustainable development are increasing the demand for these services. Although the region doesn’t have a federal cap-and-trade program, the rise in clean energy and innovations, along with new policies, are making it a fast-growing market for carbon offset services.
-
EUROPE
Europe is dominating the carbon offset or carbon credit trading service market share due to the European Union and its Emissions Trading System account for carbon credits. Due to tight caps, high-priced carbon and ambitions such as the “Fit for 55” package, Europe maintains its position as the top trader on the global market for carbon permits. The expansion to new sectors and the Carbon Border Adjustment Mechanism further strengthen its leadership. Europe also leads the voluntary market, with active corporate participation and efforts toward greater standardization and transparency.
-
ASIA
Asia Pacific is experiencing the highest growth in carbon credit trading, due to the launch of the national ETS in China. South Korea, Japan and India are quickly establishing carbon markets, due to significant government backing and sustainability targets. The rise in carbon fiber use in automotive manufacturing, mainly to create light and eco-friendly cars, supports this growth.
KEY INDUSTRY PLAYERS
Key industry players are expanding project portfolios and custom solutions for market expansion
Key industry players in the carbon offset and carbon credit trading service market are expanding their global project portfolios and offering highly customized climate action solutions. These companies are deploying certified emission reduction projects across continents spanning rainforest conservation, renewable energy deployment, methane capture and energy efficiency improvements. By aligning with corporate net-zero targets, they design tailored offset strategies that integrate seamlessly into broader sustainability plans. A major focus lies in scaling operations in emerging markets, where the potential for impactful carbon reduction and community engagement is high. This global diversification enhances accessibility, boosts credit availability and strengthens the role of carbon trading in fighting climate change.
LIST OF TOP CARBON OFFSET OR CARBON CREDIT TRADING SERVICE COMPANIES
- NativeEnergy (U.S.)
- CBEEX (China)
- WayCarbon (Brazil)
- SK Innovation (South Korea)
- Biofílica (Brazil)
- Bioassets (Brazil)
- Carbon Clear (U.K.)
- GreenTrees (U.S.)
- Forest Carbon (U.S.)
- Terrapass (U.S.)
- Renewable Choice (U.S.)
- 3Degrees (U.S.)
- South Pole Group (Switzerland)
- Aera Group (France)
- Allcot Group (Switzerland)
- Guangzhou Greenstone (China)
KEY INDUSTRY DEVELOPMENT
March 2025: Amazon has launched a carbon credit service through its Sustainability Exchange, enabling U.S. based partners with verified net-zero goals to access high-integrity, science-based credits. The initiative supports nature-based and carbon removal projects, helping companies complement decarbonization strategies. With strict eligibility criteria and transparent sourcing, Amazon aims to scale climate impact, restore forests and strengthen private sector contributions to global emissions reduction.
REPORT COVERAGE
The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.
Carbon offset or carbon credit trading service markets serve as essential tools in global climate action, operating in both voluntary and compliance sectors. Offsets enable individuals and businesses to support verified projects such as reforestation, renewable energy, and methane capture to neutralize their emissions, especially in developing regions. Carbon credits, on the other hand, function within regulated markets such as cap-and-trade systems, where governments cap emissions and allow companies to trade credits for compliance. While COVID-19 disrupted the market, a shift toward high-integrity, verifiable credits have revived momentum. Technological innovations and net-zero commitments are now driving demand, despite challenges such as additionality and leakage concerns.
Attributes | Details |
---|---|
Market Size Value In |
US$ 0.38 Billion in 2024 |
Market Size Value By |
US$ 2.38 Billion by 2033 |
Growth Rate |
CAGR of 22.53% from 2024 to 2033 |
Forecast Period |
2025-2033 |
Base Year |
2024 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Types & Application |
FAQs
The global carbon offset or carbon credit trading service market is expected to reach USD 861.0 million by 2028.
The carbon offset or carbon credit trading service market is expected to exhibit a CAGR of 22.53% by 2028.
Corporate net-zero commitments and regulatory frameworks and policies are some of the driving factors in the market.
The key market segmentation, which includes, based on type, the carbon offset or carbon credit trading service market is REDD Carbon Offset, Renewable Energy and Landfill Methane Projects. Based on application, the carbon offset or carbon credit trading service market is classified as Industrial, Household and Energy Industry.