Voluntary Carbon Offsets Market Size, Share, Growth, and Industry Growth by Type (Forestry, Landfill Methane Projects, Renewable Energy, and Others), By Application (Personal and Enterprise) Regional Forecast to 2028

REPORT OVERVIEW

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The global voluntary carbon offsets market size was USD 370.5 million in 2021. The global COVID-19 pandemic has been unprecedented and staggering, with voluntary carbon offsets experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. As per our research, the market is projected to touch USD 778.9 million by 2028, exhibiting a CAGR of 11.2% during the forecast period. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

Voluntary carbon offsets (VCM) allow various establishments such as businesses, non-profit organizations, municipalities, universities, individuals, and other types of organizations to balance their carbon emissions. This creation of balance lets organizations to control their emissions done outside of their regulatory regime. Carbon offsets are measured in metric tons of carbon dioxide-equivalent (CO2e) and may represent six primary categories of greenhouse gases: carbon dioxide (CO2), sulfur hexafluoride (SF6). nitrous oxide (N2O), methane (CH4), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs).

The growing demand for voluntary carbon offsets is growing owing to the obligations organizations have to comply with towards Kyoto Protocol and liability under EU Emissions Trading Scheme.  is expected to drive the market growth. The rising demand for carbon offset is due to growing attention on greenhouse gases is expected to drive the market growth. Energy demands from numerous industries are projected to drive the market growth. Growing health awareness and medical concerns supported the growth for the market. Rising demand from project developers to create technological advancements to reduce greenhouse gas emissions.      

COVID-19 Impact: Cessation on Economic Activities to Propel Market Growth

The effects of the COVID-19 pandemic are already being felt on a global level, the global bike locks market was significantly influenced. The outbreak of COVID-19 had a negative impact on several markets. Various countries went into lockdown. With sudden pandemic, all kinds of businesses observed disruptions. Various countries went into lockdown. With sudden pandemic, all kinds of businesses observed disruptions. With many restrictions in the pandemic there was less carbon and gas emissions, hence, there was a reduction in demand for carbon footprint management solutions. However, stringent rules and regulations led to reduction in carbon footprints which positively affected the environment. Stringent rules and regulations led to lockdowns, social distancing, and halting of operation activities which led to reduced greenhouse gases. The demand for voluntary carbon offsets was resumed owing to resuming in the economic activities.

LATEST TRENDS

"Integration of Various Technologies to Enable Market Progress"

The global voluntary carbon offsets market growth is anticipated to boost owing to integration of technology. Technology plays a major role in the generation of offset projects. It helps in digital transaction of carbon credits and visual display of the positive impacts from carbon finance. Project developers create and monetize carbon credits from various activities for climate solutions such as afforestation and forest conservation. Interest in carbon offset credits generated from engineered removal technologies.  Such new technologies to generate new carbon credits are expected to pose an opportunity for market growth during the forecast period.

SEGMENTATION

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• By Type

Based on type; the market is divided into forestry, landfill methane projects, renewable energy, and others.

Forestry is the largest part of the type segment.

• By Application

Based on application; the market is divided into personal and enterprise.

Enterprise is the largest part of the application segment.

DRIVING FACTORS

"Aim to Reduce Greenhouse Gas Emissions to Boost Market Development "

The global voluntary carbon offsets market growth is estimated to increase with the aim to reduce greenhouse gas (GHG) emissions. One of the main aims to create VCM is to create financial support for activities that reduce greenhouse gas emissions. With time, VCM has been able to create means and tackle climate change in effective ways. It has enabled companies to complete and achieve climate goals by letting them to reduce internal emission reductions which is expected to drive the market growth. They help companies to use new approaches and techniques to curb climate change with technological innovations. Carbon offsets offered by companies as an up-sell during the sales process so that customers can lessen the emissions associated with their product or service purchase. Such initiatives are expected to drive the market voluntary carbon offsets growth.

"Energy Requirements from Various Industries to Inflate Market Growth"

The global voluntary carbon offsets market growth is anticipated to boost owing to its energy requirements from various industries. Industrial sector attributes for growing energy demands and consumption. Majority of the energy is consumed by manufacturing sectors of businesses and is also increasing rapidly. Coal-powered energy sources are used for the majority of energy requirements. Adoption of various carbon footprint management solutions is projected to drive the demand for voluntary carbon offsets.

RESTRAINING FACTORS

"High Investments to Hamper Market Growth"

There are a number of factors that can push the growth of the voluntary carbon offsets market. Restraining factors such as high cost of initial investment and lack of preparation to start new market mechanisms. Such high costs of investments limits companies to voluntarily take up carbon offsetting solutions. Such factors are anticipated to restrict and limit the market growth.      

REGIONAL INSIGHTS

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"Europe to Govern Market Owing to Voluntary Actions for Carbon Offsetting "

Europe holds the largest part of the global voluntary carbon offsets market share due to voluntary actions to curb carbon offsets in the region. Minimization of global warming by controlling carbon emissions is expected to drive the market growth. Rise in carbon footprint management solutions during the forecast period is predicted to support the demand. Rising demand from commercial, residential, and industrial consumers are expected to drive the market share. Governments of the region and international organizations have set the target to limit the global temperature and provide solutions for climate change which is expected to propel the growth for voluntary carbon offsets.

KEY INDUSTRY PLAYERS

"Market Players to Boost Market Growth"

The report delivers information about the list of market players and their operations in the industry. The information is collected and reported with proper research, technological developments, acquisitions, mergers, expanding production lines, and partnerships. Other aspects examined for this market include companies producing and introducing new products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Market Players Profiled

• South Pole Group (Switzerland)
• Aera Group (France)
• Terrapass (U.S.)
• Green Mountain Energy (U.S.)
• Schneider (France)
• EcoAct (France)
• 3Degrees (U.S.)
• NativeEnergy (U.S.)
• Carbon Credit Capital (U.S.)
• GreenTrees (U.S.)
• Allcot Group (Switzerland)
• Forest Carbon (Indonesia)
• Bioassets (Philippines)
• CBEEX (China)
• Biofílica (Brazil)
• WayCarbon (Brazil)
• Guangzhou Greenstone (China)

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of 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, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.