fueling the growth of Climate And Carbon Finance Market

The global Climate And Carbon Finance Market is estimated to be valued at US$ 459.58 Mn or Million in 2023 and is expected to exhibit a CAGR of 29.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Climate and carbon finance market deals with financial mechanisms to reduce the harmful emissions and invest in low-carbon technologies and infrastructure to support climate change mitigation. Instruments like carbon credits and carbon trading help lower the costs of reducing emissions for businesses and drive investments in renewable energy and energy efficiency projects.

Market key trends:

Sustainable investments is gaining huge traction in the market. Investment firms and funds are getting attracted to environmental, social and governance (ESG) compliant investments to funding climate change solutions. They also see business opportunities in financing low-carbon projects and carbon credit generation from reduction activities. This is encouraging more private capital to flow into climate finance to support the transition to net-zero emissions economy worldwide.

Segment Analysis

The global climate and carbon finance market is segmented by Type into carbon offset, carbon trading, and others. Among these, the carbon offset segment had the largest market share in 2022 and is expected to remain the dominating segment over the forecast period. Carbon offset allows companies and individuals to counterbalance carbon emissions by funding climate-friendly programs like renewable energy and forestation. With rising awareness about environmental issues, carbon offset has become a popular compliance mechanism for organizations to achieve carbon neutrality goals and meet regulatory emission reduction targets.

Key Takeaways

The global climate and carbon finance market is expected to witness high growth, exhibiting a CAGR of 29% over the forecast period, due to increasing concerns towards global warming and stringent governmental regulations to curb greenhouse gas emissions.

Regional analysis

Europe dominated the market with around 30% share in 2022 and is projected to maintain its lead during the forecast period. This can be attributed to supportive governmental policies in the region favoring climate finance programs and presence of major carbon market participants in countries like the UK and Germany. Asia Pacific is anticipated to be the fastest-growing regional market owing to the rapid economic development and expanding industrial sector in countries such as China and India.

Key players

Key players operating in the climate and carbon finance market are Climate Finance Partners (United States), Carbon Credit Capital (United States), ClimateCare (United Kingdom), South Pole Group (Switzerland), Climate Trust Capital (United States), Carbon Clear (United Kingdom), EcoAct (France), First Climate (Germany), ClimatePartner (Germany), Ecosphere+ (United Kingdom), Verra (United States), Gold Standard (Switzerland), Natural Capital Partners (United Kingdom), Climate Friendly (Australia), Forest Carbon (United Kingdom). The global climate and carbon finance market size was valued at US$ 459.58 Mn in 2023 and is projected to reach US$ 1,061.9 Mn by 2030, expanding at a CAGR of 29% during the forecast period.

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