In 2022, the carbon credit trading platform market was worth around USD 103 million, and it is projected to advance at a 21.20% CAGR from 2022 to 2030, hitting USD 479 million by 2030, according to P&S Intelligence.
This growth can be ascribed to an increasing number of markets allowing partial use of carbon credits and funding in C02 capture systems, as well as switching to renewable energy.
In 2022, the cap-and-trade system dominated the market share. It is a system that places a "cap" on extreme emissions to reduce total emissions.
In the same year, the share of revenue from the voluntary carbon market exceeded 60%. This indicates that it is growing and will be more important in combating global warming.
In response to the market leaders commitments, the voluntary carbon market is developing to support businesses to reduce their own carbon emissions.
In 2022, the utility category held the largest market share of carbon credit trading platforms at around 30%. In addition, power companies are concentrating on finding approaches to reduce CO2 emissions.
In 2022, Europe had the largest market share at 32%. The EU Emissions Trading Scheme (ETS) serves as the main support for the EU's climate strategy and plans to reduce GHG in an effective and cost-effective manner.
Conventional fuels are burned to power steam turbines, which results in the production of CO2, the key heat-trapping greenhouse gas that contributes to global warming. Therefore, businesses are turning to smart electric grid technologies that might be able to cut carbon emissions.
The world might require to eliminate billions of tonnes of carbon dioxide from the atmosphere each year by the middle of the era and make rapid reductions in emissions to limit warming to 2°C or stabilize the environment.
Planting trees, manufacturing CO2-sucking equipment, and using CO2-absorbing minerals are current natural and technological solutions. Developing new scalable CO2 capture technologies, such as oxyfuel combustion capture, can help eliminate past carbon dioxide before it is released into the atmosphere.