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Carbon Pricing Operates as an Instrument to Tackle Emissions and Accelerate the Transition to Net Zero
11-Mar-2024
Global
Market Research
K99F-01-00-00-00
EG_2024_622
Carbon markets are trading systems that use greenhouse gas (GHG) emissions as a commodity, setting a price on them based on the value of the emitted carbon dioxide. Companies can purchase and sell carbon credits or carbon offsets to compensate for their GHG emissions. There are two main types of carbon pricing initiatives, mandatory and voluntary, resulting in two types of carbon markets, mandatory carbon markets (MCMs) and voluntary carbon markets (VCMs). Carbon markets are a cost-effective way to reduce GHG emissions and support sustainability drives. Evolving carbon pricing initiatives, both mandatory and voluntary, are expected to make a significant contribution to helping governments and corporations across the world achieve net-zero targets as the deadlines to meet them get closer. Estimated at $821 billion in 2023, the carbon market is set to reach $1750 billion by 2030. MCMs will expand in both size and sector coverage due to increasing demand and new government regulations.
This study delves into the mechanics of MCMs and VCMs, analyzing the factors that drive their expansion and the barriers that restrain their growth. The study identifies the growth opportunities emerging from the changes in this space and outlines key initiatives, prominent players, and noteworthy projects. It analyzes the prevailing trends reshaping the landscape (such as the convergence of MCMs and VCMs, the use of digital technologies, and the shift from nature-based to technology-based credits) and forecasts the trajectory of the market, projecting its evolution up to 2030.
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on Carbon Markets
Growth Opportunities Fuel the Growth Pipeline Engine™
Scope of Analysis
Segmentation
Key Predictions
MCM Instruments
Coverage Provided by Carbon Pricing Initiatives
Carbon Pricing Initiatives
Key MCMs: EU
Key MCMs: United States
Key MCMs: China
Key MCMs: United Kingdom
Key MCMs: South Korea
Key MCMs: Japan
Key MCMs: New Zealand
Key MCMs: Australia
Other Relevant MCMs
Other Relevant MCMs (continued)
Voluntary Carbon Instruments
Nature-based Solutions and Technology-based Solutions
VCM Locations
Key Certification Standards
VCM Structure
Key Carbon-offsetting Projects—2023
Buyers of Carbon Offsets
Revenue Forecast: Carbon Markets
Revenue Forecast: MCMs
Revenue Forecast: VCMs
Growth Drivers
Growth Restraints
Key Trends in Carbon Markets
Trend 1—Convergence of VCMs and MCMs
Trend 2—Digital Technologies for Carbon Reporting, Monitoring, and Tracking
Trend 3—VCMs: Shift from Reduction and Avoidance to Removal
Trend 4—VCMs: Shift from Nature-based Credits to Technology-based Credits
Trend 5—Higher Standardization across Voluntary Carbon Credits
Growth Opportunity 1: Expansion of MCM Coverage to Smaller Emitters
Growth Opportunity 1: Expansion of MCM Coverage to Smaller Emitters (continued)
Growth Opportunity 2: Digital Technologies in VCMs
Growth Opportunity 2: Digital Technologies in VCMs (continued)
Growth Opportunity 3: Tailored Portfolio
Growth Opportunity 3: Tailored Portfolio (continued)
Partial List of Acronyms
List of Mandatory Carbon Pricing Initiatives: ETS
List of Mandatory Carbon Pricing Initiatives: Carbon Taxes
List of Exhibits
Legal Disclaimer
List of Figures
- Carbon Markets: Share of GHG Covered by Carbon Pricing Initiatives, Global, 2023
- Carbon Markets: Offset Credits Issued by Standards, Global, 2023
- Carbon Markets: Where Companies Buy Offsets From, Global, 2023
- Carbon Markets: Revenue Forecast, Global, 2020–2030
- MCMs: Revenue Forecast, Global, 2020–2030
- VCMs: Revenue Forecast, Global, 2020–2030
- Carbon Markets: Growth Drivers, Global, 2024–2030
- Carbon Markets: Growth Restraints, Global, 2024–2030
- Carbon Market: Current VCM Projects, Global, 2023
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| Deliverable Type | Market Research |
|---|---|
| Author | Milagros Andurell |
| Industries | Energy |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Carbon Markets Forecast |
| Keyword 2 | Carbon Trading Industry Analysis |
| Keyword 3 | Technology Innovations In Carbon Markets |
| List of Charts and Figures | Carbon Markets: Share of GHG Covered by Carbon Pricing Initiatives, Global, 2023~ Carbon Markets: Offset Credits Issued by Standards, Global, 2023~ Carbon Markets: Where Companies Buy Offsets From, Global, 2023~ Carbon Markets: Revenue Forecast, Global, 2020–2030~ MCMs: Revenue Forecast, Global, 2020–2030~ VCMs: Revenue Forecast, Global, 2020–2030~ Carbon Markets: Growth Drivers, Global, 2024–2030~ Carbon Markets: Growth Restraints, Global, 2024–2030~ Carbon Market: Current VCM Projects, Global, 2023~ |
| Podcast | No |
| WIP Number | K99F-01-00-00-00 |
Carbon Markets: Trends and Growth Opportunities
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