by Climate and Carbon Finance assists companies and governments in reducing carbon emissions through trading in carbon credits. It involves activities such as carbon offsetting, carbon trading, greenhouse gas reporting and climate change advisory. The carbon credits allow organizations to emit a specific amount of greenhouse gases, failing which they need to buy additional credits.
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 3.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Developing Carbon Credit Trading
Carbon credit trading is emerging as one of the major trends in the climate and carbon finance market. Carbon trading allows organizations to trade pollution allowances and offset carbon emissions. The growing awareness about climate change is driving more companies to set carbon reduction targets and rely on carbon credits and offsets to achieve them. The launch of several new carbon offset programs and initiatives by governments is supporting the development of carbon credit trading infrastructure globally. New offset standards and mechanisms are attracting greater participation in carbon markets. This is expected to boost the valuation of the climate and carbon finance market over the forecast period.
SWOT Analysis
Strength: The climate and carbon finance market aims to address climate change & help organizations achieve sustainability goals. It supports environmental protection efforts through financing green projects.
Weakness: The verification & measurement of emission reductions is complex requiring extensive monitoring & reporting. This increases compliance costs for participants.
Opportunity: Rising global awareness about climate change is driving more organizations to invest in carbon credits & offsets. Developing nations present opportunities to scale up financing for green projects.
Threats: Changes in regulatory frameworks & climate policies across jurisdictions pose risks.stricter emission norms & targets by governments could impact market dynamics.
Key Takeaways
The Global Climate And Carbon Finance Market Size is expected to witness high growth over the forecast period driven by initiatives to limit global warming. 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 3.6% over the forecast period 2023 to 2030.
The North American region currently dominates the market owing to supportive government policies and presence of major players. Asia Pacific region is expected to be the fastest growing market for climate and carbon finance. This is due to the large untapped potential for green projects and growing participation of emerging countries in carbon trading through initiatives like the UNFCCC. Increased investments and extended compliance periods for emission reductions will further boost growth opportunities across developing Asian nations.
Key players operating in the climate and carbon finance market include International Paper Company, Georgia-Pacific LLC, Kimberly Clark Corporation. These players are focusing on financing renewable energy projects and investing in carbon offset programs to strengthen their positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
