The global Climate And Carbon Finance Market is estimated to be valued at US$ 459.58 Mn in 2023 and is expected to exhibit a CAGR of 29.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The climate and carbon finance market provides funds related to projects that help mitigate or reduce the impact of climate change. Carbon credits are generated from projects like renewable energy, energy efficiency, forestry, and waste management that help reduce greenhouse gas emissions.
Market key trends:
One of the major trends in the climate and carbon finance market is the rising focus on internal carbon pricing by companies. Many companies are implementing an internal carbon price to evaluate investments and encourage low-carbon innovations. An internal carbon price helps companies prepare for future carbon regulations and policies. It encourages investments in energy efficiency projects and renewable energy to reduce long-term compliance costs. This trend is expected to drive the demand for carbon credits in the coming years.
Market key trends:
The climate and carbon finance market has been witnessing increasing adoption of carbon credit trading. Carbon credits are permits that allow companies and countries to emit a certain amount of carbon dioxide or other greenhouse gases. As organizations aim to reduce their carbon footprint and become carbon neutral, the demand for carbon credits is growing substantially. Furthermore, regulatory policies such as carbon pricing mechanisms and legal obligations to meet climate targets are driving more entities to explore carbon offsetting as a compliance strategy.
SWOT Analysis
Strength: Presence of supportive policies and regulations around the world to promote carbon trading and offsetting.
Weakness: Lack of standardized protocols and methods of measurement, reporting and verification of carbon credits.
Opportunity: Growing global commitment towards achieving net-zero emissions and the Paris agreement goals opening up new opportunities.
Threats: Potential changes in regulatory landscape and lack of governance could undermine the carbon markets.
Key Takeaways
The global climate and carbon finance market is expected to witness high growth, exhibiting CAGR of 29.% over the forecast period, due to increasing emphasis on reducing greenhouse gas emissions and achieving carbon neutrality goals.
The North American region currently dominates the market owing to supportive carbon pricing initiatives and the presence of major carbon credit traders and project developers in countries like the United States. The Asia Pacific region is anticipated to grow at the fastest pace during the forecast period due to the large untapped market in countries like China and India with rising focus on lowering emissions.
Key players operating in the climate and carbon finance market are Climate Finance Partners (United States), Carbon Credit Capital (United States), ClimateCare (United Kingdom), South Pole Group (Switzerland), Climate Trust Capital (United States), Carbon Clear (United Kingdom), EcoAct (France), First Climate (Germany), ClimatePartner (Germany), Ecosphere+ (United Kingdom), Verra (United States), Gold Standard (Switzerland), Natural Capital Partners (United Kingdom), Climate Friendly (Australia), Forest Carbon (United Kingdom).
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.