Mandatory and Voluntary Carbon Offset Market Size, Share, Growth, and Industry Analysis, By Type (Forestry, Renewable Energy, Landfill Methane Projects, and Others), By Application (Personal and Enterprise), Regional Insights and Forecast From 2025 To 2033

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MANDATORY AND VOLUNTARY CARBON OFFSET MARKET OVERVIEW

The global mandatory and voluntary carbon offset market size was valued at approximately USD 2.11 billion in 2024 and is expected to reach USD 12.1 billion by 2033, growing at a compound annual growth rate (CAGR) of about 21% from 2025 to 2033.

The market where any business releases specific numbers of carbon credits annually is known as the mandated carbon markets. both regulated and unregulated marketplaces. To lower the overall amount of allowed emissions, the cap is gradually lowered. A carbon budget is essentially established by these schemes, which impose a ceiling on the total quantity of specific greenhouse gases that participating industries are permitted to release.

Complying with strict environmental laws in water treatment applications and the growing importance of air pollution management, particularly mercury removal, are the key factors propelling the market in the medium term. A growing number of specialty black products on the market and expanding battery applications are the main factors propelling the market.  This factor has augmented the mandatory and voluntary carbon offset market growth.

COVID-19 IMAPCT

Market Growth Obstructed by Pandemic due to Lockdown

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Due to the temporary suspension of operations in a number of end-user businesses, including metal extraction, the COVID-19 pandemic had a negative effect on the mandatory and voluntary carbon offset market due to decreased demand. These factors brought a lot of challenges in front of the mandatory and voluntary carbon offset market share but past pandemic these challenges have been faced and put to rest since then. Nonetheless, the industry under study has seen an increase in demand since the pandemic's end, and in the years to come, growth at a notable rate is anticipated. 

LATEST TRENDS

Pharmaceutical Field to Drive Market Growth

New applications in the pharmaceutical and medical fields should present a market potential. It is anticipated that the increasing number of people using electric vehicles will present opportunities in the future. One common use for activated carbon is water treatment. Granular activated carbon is used in the majority of water treatment filters. It is used to eliminate organic-chemical compounds, colorants, and trace amounts of chemicals.

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MANDATORY AND VOLUNTARY CARBON OFFSET MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Forestry, Renewable Energy, Landfill Methane Projects, and Others amongst which the leading segment is the Forestry.

• Forestry: It is nothing but the art and science of establishing, maintaining, reforesting, harvesting, preserving, and restoring forests and woods for the benefit of people and the environment is known as forestry. Both natural stands and plantations engage in forestry activities.

• Renewable Energy: It is basically Energy derived from natural resources that revive themselves within a human timescale is referred to as renewable energy. To provide energy security and mitigating climate change, using renewable energy technology also has some positive economic effects.

• Landfill Methane Projects: Rather than seeping into the atmosphere or spreading as garbage, landfill methane can be extracted, trapped, and used as a relatively clean energy source for producing heat or power.

By Application

Based on application the global market can be categorized into Personal and Enterprise amongst which the leading segment is the Enterprise.

• Personal: It is basically used by the population for personal uses.

• Enterprise: It is nothing but the product usage for big and established enterprises.

DRIVING FACTORS

Water Treatment to Boost the Market

Market Dominance by the Water Treatment Sector. One common use for activated carbon is water treatment. Granular activated carbon is used in the majority of water treatment filters. Activated carbon is a highly successful method for treating wastewater from municipal and industrial sources. It is used to eliminate organic-chemical compounds, colorants, and trace amounts of pollutants like chemicals.

Rising Number of Rubber Products and Tires to Expand the Market

Expanding Use of Industrial Rubber Products and Tires. Because of its impact on the mechanical and dynamic characteristics of tires, carbon black is one of the reinforcements that is commonly utilized in the tire industry. It is utilized in a variety of formulas with distinct rubber kinds to alter the tire's performance characteristics.

RESTRAINING FACTOR

Narrower Markets to Impede Market Growth

The anticipated impediment to market expansion is narrower markets, which stem from higher prices for certain grades of activated carbon, the possibility of replacements such silica gel, and the creation of superior substitutes. Alternatively, the market under study is not expanding as planned due to rising investments in recovered carbon black and fluctuations in raw material prices.

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MANDATORY AND VOLUNTARY CARBON OFFSET MARKET REGIONAL INSIGHTS

Asia Pacific  Dominating the Market due to Advanced Technology

The market is primarily segmented into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

Asia-Pacific held a significant volume share in the lead position in the activated carbon market, and this trend is anticipated to continue during the projected period. Since carbon black is used in tires and other rubber-based products and China's rubber and automotive industries have been growing recently, the nation's attention has been drawn to the rapidly expanding carbon black industry, whose output is also increasing overall.

KEY INDUSTRY PLAYERS

Market Players to Invest in Collaborations To Sustain Market Presence

The market's competitive landscape is consolidated, with a few prominent competitors operating at the global and regional levels. Product development and strategic alliances are being pursued by key players to extend their respective product portfolios and achieve a strong foothold in the global market.  They also use techniques such as mergers and acquisitions, partnerships, distribution agreements, partnerships, advertisements, and celebrity endorsements to gain a competitive advantage in the market.

List Of Top Mandatory and Voluntary Carbon Offset Companies

• South Pole Group (Switzerland)
• Aera Group (France)
• Terrapass (U.S.)
• Green Mountain Energy (U.S.)
• Schneider (France)

INDUSTRIAL DEVELOPMENT

March 2022: One Equity Partners purchased Cabot Corporation's activated carbon division, Norit Activated Carbon. Norit Activated Carbon emerged as a stand-alone business after the divestment, offering its clients a wide range of activated carbon solutions via its ten production sites spread across seven nations.

REPORT COVERAGE

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.