Press Release

Stringent Government Regulations & Policies Driving Global Carbon Credit Trading Market

The Global Carbon Credit Trading Market size is anticipated to grow at an impressive CAGR during the forecast period, i.e., 2024-30, cites MarkNtel Advisors in the recent research report. Many elements are driving the growth & expansion of the carbon credit trading industry, one of them is the stringent government regulations & policies. The carbon credit trading industry is growing & witnessing a magnificent sales boom because of strict authorities’ guidelines and rules. Governments of various international locations are imposing strict environmental legal guidelines to mitigate the terrible impacts of greenhouse gas (GHG). These strict regulations frequently involve mandatory emission reduction caps and targets, forcing companies to come up with practical solutions to comply. Carbon credit trading enables companies to effectively adhere to these regulations without facing additional costs. Therefore, there is an increasing demand for carbon credits to meet requirements as prescribed under strict government policies and regulations. Ultimately, it is driving the growth & expansion of the Global Carbon Credit Trading Industry.

Economic incentives play a crucial role in augmenting the size & volume of the Carbon Credit Trading Industry. Market Players can generate extra revenue by selling extra credits they earn when their emissions go below the assigned threshold. This makes carbon trading an economically viable strategy in addition to motivating businesses to invest in sustainable practices.

Additionally, regions around the world are dealing with a non-stop upward push in the demand for carbon credits due to the growing terrible influences of greenhouse gas (GHG) emissions. Thus, to reduce greenhouse gas (GHG) emissions and their bad impacts, governments across the regions are actively transitioning within the course of low-carbon financial system techniques, thus fueling the demand & supply of carbon credit in the market.

Moreover, the integration of blockchain and AI is an emerging market trend, which is revolutionizing the market dynamics. Blockchain & AI technology helps improve transparency, security, and traceability while preventing concerns like fraud and duplicate counting. This ensures that each carbon credit has a unique number. Market participants and regulators are more trusting of one another since this technology provides a permanent record of transactions. Hence, the integration of blockchain and AI improves the efficiency, dependability, and transparency of the carbon credit trading system, ultimately augmenting the size & volume of the market, further states the research report, "Global Carbon Credit Trading Market Analysis, 2024."

Segmentation Analysis

The Energy Sector Holds the Largest Market Share

Based on the end-user industry the market is bifurcated into energy, manufacturing & heavy industry, transportation, forestry & agriculture, and others. Of them, the energy segment holds the largest share of the market and it is forecasted that this sector will maintain its dominant position in the coming years as well. The foremost issue in the back of this domination is the large quantities of greenhouse fuel emissions generated by power plants, the extraction of oil & gas, and other electricity-associated activities. The energy sector is a primary player in the trading of carbon credits because this sector comes below strict regulatory frameworks. Leading market companies working in the energy sector can buy and sell carbon credits to offset their emissions, ultimately augmenting the segment’s growth & expansion.

Europe Leads the Global Carbon Credit Trading Market

With the biggest share, Europe holds the top position in the carbon credit trading industry. The emergence of the European Union Emissions Trading System (EU ETS) is the main element at the back of the dominance of Europe in the Global Carbon Credit Trading Market. The EU ETS set up in 2005, is the sector's most sophisticated and superior carbon credit trading platform. It includes a wide variety of industries and contributes appreciably to the boom of the European Carbon Credit Trading Market. On the other hand, the North American Carbon Credit Trading Market has been witnessing amazing revenue growth in the past few years and is predicted to capture a healthy market share on the global stage but the European Carbon Credit Market holds the largest market share at the moment.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Intercontinental Exchange, Inc., Xpansiv, Carbonex, EEX Group, AirCarbon Exchange, Carbon Trade Exchange, CME Group, Climate Impact X, Carbon Place, Planetly, Toucan, EnKing International, ClimateTrade, Carbon Credit Portal, Flow Carbon, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Market Size- By Value, Forecast Numbers, Segmentation, Market Shares)?
2. What are the market trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & solution adoption?
5. How has the competition been shaping up across the regions?
6. How have the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?