The Latest Carbon Credit Industry Statistics Explained
The global carbon credit market size was valued at USD 45.23 billion in 2019.
The statistic signifies that the overall worth of the global carbon credit market was estimated to be USD 45.23 billion in the year 2019. This figure represents the total value of transactions within the market for carbon credits, which are used as a mechanism to reduce greenhouse gas emissions and combat climate change. The size of the carbon credit market is indicative of the growing importance placed on environmental sustainability and efforts to mitigate the impact of human activities on the planet. This statistic highlights the scale of the market and the economic value associated with the trading of carbon credits as a tool for incentivizing emissions reductions and promoting a transition to a more sustainable future.
Europe accounted for around 80% of global carbon credit usage in 2019.
The statistic indicates that in 2019, the continent of Europe was responsible for approximately 80% of the total usage of carbon credits worldwide. Carbon credits are permits that allow organizations to emit a certain amount of carbon dioxide or other greenhouse gases, with the goal of reducing overall emissions and combatting climate change. The high usage of carbon credits in Europe suggests a strong commitment to environmental sustainability and efforts to mitigate the impact of carbon emissions on the climate. This statistic emphasizes Europe’s leadership in implementing strategies to reduce greenhouse gas emissions and transition towards a more sustainable and environmentally conscious economy.
The carbon offset market is projected to grow at a Compound Annual Growth Rate (CAGR) of 13% from 2021 to 2026.
The statistic indicates that the carbon offset market is expected to expand consistently over the next five years, with a Compound Annual Growth Rate (CAGR) of 13% projected from 2021 to 2026. This growth rate suggests that the market is anticipated to increase by an average of 13% each year during this period. Such growth is significant and reflects the increasing global focus on environmental sustainability and the pursuit of carbon neutrality. Various factors such as regulatory initiatives, corporate sustainability goals, and consumer awareness are likely to drive this growth in the carbon offset market, leading to a positive outlook for the industry in the coming years.
North America’s carbon credit market is expected to register a CAGR of 6% from 2020 to 2025.
The statistic indicates that the carbon credit market in North America is projected to experience a Compound Annual Growth Rate (CAGR) of 6% between the years 2020 and 2025. This growth rate suggests a steady increase in the market size and value of carbon credits being traded within the North American region over the specified time period. A higher CAGR signifies a faster expansion of the market, indicating potential opportunities for increased trading, investment, and adoption of carbon credits as a means to reduce greenhouse gas emissions and address climate change concerns in the region.
The global carbon credit market was worth USD 215.42 million in 2020.
The statistic stating that the global carbon credit market was worth USD 215.42 million in 2020 represents the total value of transactions related to carbon credits on a worldwide scale for that particular year. Carbon credits are financial instruments that represent the reduction, avoidance, or removal of greenhouse gas emissions, which are crucial in mitigating climate change. The value of the carbon credit market indicates the total economic activity and investment in environmental sustainability initiatives aimed at reducing carbon emissions. This statistic highlights the growing importance of addressing climate change and the increasing interest in implementing carbon offset projects to combat global warming and promote a more sustainable future.
As of June 2020, a total of 179 countries have ratified the Paris Agreement which focuses on carbon neutrality.
The statistic indicates that as of June 2020, a total of 179 countries around the world have officially ratified the Paris Agreement, demonstrating an international commitment to combatting climate change by striving towards carbon neutrality. The Paris Agreement, established in 2015 during the United Nations Framework Convention on Climate Change, aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels, with efforts to limit it to 1.5 degrees Celsius. By ratifying the agreement, countries have committed to setting and achieving their own targets for reducing greenhouse gas emissions and transitioning towards a low-carbon economy, ultimately working towards a more sustainable and environmentally conscious future.
To meet the Paris Agreement goals, global carbon credit demand could increase up to 41 GtCO2e in 2030.
The statistic “To meet the Paris Agreement goals, global carbon credit demand could increase up to 41 GtCO2e in 2030” implies that in order to limit global warming to well below 2 degrees Celsius above pre-industrial levels, there will be a significant need for carbon credits by 2030. These carbon credits would be used to offset greenhouse gas emissions that cannot be reduced directly, allowing countries and companies to meet their emission reduction targets. The projected increase of up to 41 gigatonnes of carbon dioxide equivalent (GtCO2e) in demand highlights the scale of the challenge in transitioning towards a low-carbon economy and underlines the importance of effective carbon pricing mechanisms and emissions trading schemes in achieving climate change mitigation goals.
Globally, carbon offsets represent a reduction of CO2 emissions of over 1.1 billion tonnes.
The statistic ‘Globally, carbon offsets represent a reduction of CO2 emissions of over 1.1 billion tonnes’ indicates that various initiatives and projects around the world have collectively led to the reduction of carbon dioxide emissions by more than 1.1 billion metric tons. Carbon offsets are measures taken to compensate for greenhouse gas emissions by reducing emissions elsewhere or increasing carbon sequestration processes. The significant reduction of over 1.1 billion tonnes of CO2 emissions demonstrates the impact of these carbon offset initiatives in mitigating climate change and environmental impact on a global scale.
The Voluntary Carbon Market grew by 264% in the first quarter of 2021.
The statistic that the Voluntary Carbon Market grew by 264% in the first quarter of 2021 indicates a significant surge in activity in the market for voluntary carbon credits, where individuals and organizations can purchase credits to offset their carbon footprint or support environmental projects. This growth could be attributed to heightened awareness and actions related to climate change, as well as increased commitments from companies to reduce their carbon emissions. The substantial increase in the market size within such a short period signifies a growing interest in sustainability and the willingness of stakeholders to invest in environmental initiatives, potentially signaling a positive trend towards mitigating climate change through voluntary actions and investments in carbon offset projects.
In 2020, approximately 93 million of carbon dioxide units were traded via NZ’s Emissions Trading Scheme.
The statistic indicates that in 2020, a total of 93 million units of carbon dioxide were traded through New Zealand’s Emissions Trading Scheme (ETS). This suggests that the ETS was active and functioning as a mechanism to regulate and incentivize the reduction of carbon emissions in the country. The trading of carbon dioxide units reflects efforts by businesses and organizations to comply with emissions regulations and potentially engage in carbon offsetting activities. By participating in the ETS, entities can buy and sell carbon credits to meet their emissions targets or generate revenue, ultimately contributing to efforts to mitigate climate change and reduce overall greenhouse gas emissions.
The carbon credit market in Asia Pacific is expected to grow at the highest CAGR from 2020 to 2025.
This statistic indicates that the carbon credit market in the Asia Pacific region is forecasted to experience the highest Compound Annual Growth Rate (CAGR) from the year 2020 to 2025 compared to other regions. This suggests a strong and steady increase in the demand for carbon credits, potentially driven by regulatory frameworks, corporate commitments to sustainability, and increased awareness of climate change issues. The Asia Pacific region’s higher CAGR implies that it is likely to be a significant player in the global carbon credit market in the coming years, presenting both opportunities for investment and initiatives to mitigate climate change.
The global carbon trading volume rose 14% in 2019 to a total of 8.76 billion metric tons of carbon dioxide equivalent.
The statistic indicates that the total global carbon trading volume increased by 14% in 2019 compared to the previous year, reaching a total of 8.76 billion metric tons of carbon dioxide equivalent. This suggests a significant growth in the market for trading carbon emissions, potentially driven by increasing efforts to mitigate climate change and reduce greenhouse gas emissions worldwide. Carbon trading allows countries and companies to buy and sell emission allowances as a way to meet regulatory requirements and promote environmental sustainability. The rise in trading volume could reflect a heightened focus on addressing climate change concerns and transitioning towards a more carbon-neutral economy.
In 2019, Chinese carbon credits accounted for about half of the carbon trading volume.
The statistic indicates that in 2019, Chinese carbon credits made up approximately 50% of the total carbon trading volume globally. This suggests that China played a significant role in the carbon market by contributing a substantial share of carbon credits. The high level of Chinese participation in carbon trading indicates the country’s commitment to reducing carbon emissions and addressing climate change. It also highlights China’s increasingly prominent role in the global effort to mitigate greenhouse gas emissions and promote sustainability. Additionally, the statistic underscores the importance of China’s impact on the international carbon market and its influence on global climate policies and initiatives.
Approximately 98% of global carbon credits were traded in the EU Emission Trading System in 2018.
This statistic suggests that the European Union Emission Trading System (EU ETS) played a dominant role in the global carbon credit market in 2018, accounting for a vast majority (around 98%) of the total volume of carbon credits traded worldwide. This highlights the significance and influence of the EU ETS in facilitating the exchange of carbon credits as a mechanism to address climate change by reducing greenhouse gas emissions. The high trading volume within the EU ETS indicates that this market-based approach to reducing carbon emissions has been adopted and leveraged by entities within the European Union to meet their emission reduction targets and comply with environmental regulations.
The global price of carbon credits rose by around 25% during the first quarter of 2021.
The statistic indicates that the average price of carbon credits, a key component in market-based mechanisms to reduce emissions, increased by approximately 25% globally in the first three months of 2021. This rise suggests a growing demand for carbon credits, likely driven by increased awareness and efforts to combat climate change by corporations, governments, and other entities. The surge in the price of carbon credits may also reflect more stringent regulations or policies aimed at reducing greenhouse gas emissions, prompting businesses to purchase more credits to meet their compliance obligations or offset their carbon footprint. Overall, the 25% increase in the global price of carbon credits highlights a strengthening commitment to sustainable practices and mitigating the impacts of climate change on a broader scale.
The average carbon offset price increased from $3.0 per tonne CO2e in 2016 to $3.8 in 2019.
The statistic indicates that the average price of carbon offsets, which are used to compensate for greenhouse gas emissions, rose over a three-year period. Specifically, the cost per tonne of carbon dioxide equivalent (CO2e) increased from $3.0 in 2016 to $3.8 in 2019. This suggests a gradual uptrend in the value of carbon offset prices, implying a potential shift towards more expensive but environmentally sustainable practices within the market. The rise could result from various factors, such as increased demand for carbon offsets, regulatory changes, or a growing awareness of the importance of addressing climate change. Overall, this statistic highlights a positive trend towards valuing and investing in emissions reduction and sustainable business practices.
Afforestation and reforestation projects accounted for 13% of the volume of offsets issued in the global voluntary carbon market in 2019.
The statistic states that in 2019, afforestation and reforestation projects collectively contributed to 13% of the total volume of offsets issued in the global voluntary carbon market. This indicates that a significant portion of the carbon offsets generated and traded in the market that year came from projects aimed at planting new trees or restoring existing forested areas. Afforestation involves the establishment of new forests on land that was not previously forested, while reforestation involves the restoration of forests on land that was previously deforested. The fact that these activities accounted for a notable portion of the total volume of offsets highlights the increasing recognition and importance of forest-based carbon sequestration projects in mitigating climate change and reducing greenhouse gas emissions.
As of 2021, four largest airlines generated a combined total of over 98 million metric tons of CO2e in 2019.
The statistic indicates that the combined total carbon dioxide equivalent (CO2e) emissions from the four largest airlines in 2019 exceeded 98 million metric tons. This highlights the significant environmental impact of the aviation industry in terms of greenhouse gas emissions. The statistic serves as a stark reminder of the need for sustainable practices within the airline sector, as carbon emissions contribute to global climate change. These findings underscore the importance of implementing measures to reduce carbon emissions in the aviation industry, such as investing in fuel-efficient technologies, utilizing sustainable aviation fuels, and implementing carbon offset programs to mitigate the environmental impact of air travel.
The global carbon offset/credit market reached 98 million in transfer volume in 2020.
The statistic that the global carbon offset/credit market reached a transfer volume of 98 million in 2020 indicates the total value of carbon offsets and credits that were traded or transacted globally during that year. This figure represents the amount of greenhouse gas emissions that were either reduced, avoided, or removed from the atmosphere through various projects and initiatives aimed at mitigating climate change. The market for carbon offsets and credits enables individuals, companies, and governments to invest in activities that help offset their own carbon footprint, thereby contributing to overall emissions reduction efforts and promoting sustainable practices on a global scale. This statistic highlights the increasing importance and value of carbon offsetting as a significant tool in combating climate change.
Conclusion
The statistics presented in this blog post highlight the growing importance and potential of the carbon credit industry. As businesses and individuals increasingly seek ways to reduce their carbon footprint, the demand for carbon credits is on the rise. By understanding the trends and figures in this dynamic industry, stakeholders can make informed decisions to promote sustainability and combat climate change.
References
0. – https://www.www.grandviewresearch.com
1. – https://www.www.un.org
2. – https://www.www.shell.com
3. – https://www.environment.govt.nz
4. – https://www.www.statista.com
5. – https://www.www.wri.org
6. – https://www.www.mordorintelligence.com
7. – https://www.www.southpole.com
8. – https://www.www.forest-trends.org
9. – https://www.www.fortunebusinessinsights.com
10. – https://www.www.carbonbrief.org
