How big is the compliance carbon credits market

Q: What is the current size of the compliance carbon credits market?

The compliance carbon credits market was valued at USD 113.1 billion in 2024 and is projected to reach USD 458.4 billion by 2031.

Q: What is the growth rate of the compliance carbon credits market?

The market is anticipated to grow at a CAGR of 15.6% between 2025 and 2031.

Q: Which components contribute the most to the compliance carbon credits market?

Government-backed emission allowances, carbon offset registries, and MRV solutions are key contributors.

Q: What is driving demand in the compliance carbon credits market?

The demand is fueled by regulatory emission limits, ESG compliance goals, and global climate targets.

Q: What challenges does the compliance carbon credits market face?

Challenges include pricing volatility, verification complexity, limited cross-border trading, and fraud prevention.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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How big is the compliance carbon credits market | Size, Trends & Forecast 2025

Code: MTA5787

Publication Date: Jul 2025

How big is the Compliance Carbon Credits Market?

According to 绿帽社 internal database and industry insights, the compliance carbon credits market was valued at approximately USD 113.1 billion in 2024 and is projected to reach USD 458.4 billion by 2031, growing at a CAGR of 15.6% during the forecast period.

The market is expanding steadily, supported by increasing environmental mandates, growth in cap-and-trade programs, and institutional demand for regulated carbon offsets.

Key Growth Drivers of the Compliance Carbon Credits Market

Diffusion of emissions trading systems in advanced economies and developing economies
ESG-related corporate net-zero and decarbonization targets
Policies embraced by the government to facilitate regulated carbon price mechanisms
Employment of improved monitoring, reporting and verification systems
Worldwide movement of clean energy, forestation, and carbon sequestration technologies

Compliance Carbon Credits Market Trends

The Compliance Carbon Credits Market聽is witnessing heightened activity in government-backed emissions trading schemes such as the EU ETS, China鈥檚 national program, and California鈥檚 Cap-and-Trade. Regulated offset purchases are making businesses more involved in offset purchase in order to meet the mandatory carbon commitments. Increase in carbon credit price and shrinking of emission cap is also encouraging market participation. Digital MRV tools, blockchain-enabled registries and satellite-based emissions tracking are having and will continue to have a critical role in helping to guarantee transparency, mitigate fraud, and simplify compliance processes.

Emerging Developments in the Compliance Carbon Credits Market

The Compliance Carbon Credits Market聽is seeing increased investment in nature-based projects, carbon capture initiatives, and international offset programs aligned with Article 6 of the Paris Agreement. Other options that companies are considering are real-time issuance of credits, validation systems that are automated, trading across the boarders to maximize scalability and liquidity. The merger, partnering and government-business alignments are also promoting uniform structures and faster implementing of sound compliance systems on the global basis.