The global carbon offset market is estimated to be valued at US$ 414.8 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis
Strength: The carbon offset market has strong growth potential owing to the rising awareness regarding carbon emissions and need to achieve carbon neutrality goals. Many countries and organizations have pledged to become carbon neutral by certain timelines, driving the demand for offsets. Presence of various offsetting programs and standards ensure standardized process for quantifying carbon reductions.
Weakness: Reliability of some offset projects and the risks of double counting of carbon credits can undermine the credibility of the market. High costs associated with validation, verification and certification of offsets limit the affordability for smaller players.
Opportunity: Emerging opportunities around nature-based solutions for carbon sequestration through forestry, agriculture and soil management. Growing tradability of voluntary carbon credits with the development of secondary markets.
Threats: Stricter government regulations around additionality and baseline setting principles can affect project viability. Delays in implementing compliance carbon markets in some regions pose a challenge.
Key Takeaways
The Global Carbon Offset Market Size is expected to witness high growth over the forecast period supported by the expanding voluntary and compliance carbon markets globally. As countries and organizations set ambitious goals to become carbon neutral, the demand for reliable offsets is growing. Key partnerships and commitments from governments and private players are further driving momentum in the offsetting space across regions.
North America currently dominates the global carbon offset market owing to stringent climate policies and the presence of large voluntary market in countries like US. Europe is another major regional market encouraged by the EU Emissions Trading System. However, Asia Pacific is identified as the fastest growing regional market for carbon offsets supported by the carbon neutral commitments from countries like China, South Korea and India complemented by regional compliance schemes. Growing afforestation activities also present opportunities in Australia and Southeast Asian nations.
Key players operating in the carbon offset market are AptarGroup, Weener Plastics Group, Bormioli Rocco Pharma, Pacific Packaging Components, PCC Exol, SHL Group, O.Berk Company, Winfield Laboratories, O.Berk, Comar, RPC Group, Alpha Packaging, Pretium Packaging, Silgan Holdings, Origin Pharma Packaging, Vidchem pty ltd, Mold-Rite Plastics, Berry Global, Amcor, Gerresheimer.
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