Global carbon credit market to hit $84.4 billion by 2050
![Global carbon credit market to hit $84.4 billion by 2050](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/04/11.jpg)
The global carbon credit market is expected to reach a value of US$ 84.4 billion by 2050, compared to $1.0 billion in 2023, with a compound annual growth rate (CAGR) of 18% during the forecast period of 2024–2050.
As efforts to combat climate change intensify, there are currently 73 carbon pricing mechanisms in operation worldwide as of April 1, 2023. These mechanisms collectively cover a significant 23.04% of global greenhouse gas emissions.
The average price for offsetting one metric ton of carbon dioxide stands between $4-5, fluctuating with market dynamics. Notably, the EU Emissions Trading System (ETS) commands the highest carbon price in 2023, reaching $5.6 per metric ton.
Also read: Singapore-backed climate action data trust boosts transparency in carbon credit trade
As companies worldwide commit to achieving net-zero emissions, the demand for carbon offsets is expected to increase dramatically in the next decade, potentially growing five to ten times larger than current levels.
This surge is evident in the rising number of businesses setting net-zero goals, which has surged from 500 in 2019 to over 5,000 today. A 2022 survey underscores this trend, showing that 69% of companies plan to purchase carbon credits in the next five years, a significant rise from 56% in 2020.
Nature-based solutions, especially reforestation efforts, are crucial in the voluntary carbon market, making up 60% of its value in 2022.
This emphasis on natural methods reflects a growing acknowledgment of their potential, with the market for nature-based carbon credits projected to reach $50 billion by 2050.
Furthermore, forestry and land use projects made up a significant 47% of voluntary carbon market credits issued in 2022, highlighting their importance.
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-at-4.33.30 PM-150x150.png)
CalPERS allocates nearly $10 billion to climate action...
-
The California Public Employees’ Retir...
- 05/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Asset-Management-150x150.png)
Eco-gamers launch online video game to target asset...
-
A team of eco-gamers known as Serious Pe...
- 01/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/06/Depositphotos_73537517_S-150x150.jpg)
EU regulators push for revisions in landmark ESG...
-
Regulators overseeing the markets, banki...
- 19/06/2024
Related News
ERM, a sustainability consultancy company, announced that it has commenced offshore trials to test the key elements of its Dolphyn Hydrogen process. The trials mark […]
European Energy announced that it had acquired grid connection approvals for nearly 500 megawatts (MW) of solar and wind energy projects across Romania. The approvals […]
In its second-quarter update, Shell announced that it would incur an impairment charge of up to $2 billion following the sale of its Singapore refinery […]
The California Public Employees’ Retirement System (CalPERS) announced a commitment of almost $10 billion to advancing global efforts to transition to a low-carbon economy. This […]
The European Commission announced that it has approved a €10.82 billion French scheme to support offshore wind energy deployment. It aims to help foster a transition […]
ENGIE announced that it signed a 7-year Biotmethane Purchase Agreement (BPA) with BASF. According to the agreement, ENGIE will supply the chemicals company with 2.7 […]