Carbon Credit Market Outlook to 2028: Emerging Trends and Will Generate New Growth Opportunities Status

Carbon Credit 

A Carbon Credit Market is a permit or certificate that entitles the holder to emit one tonne of carbon dioxide or the equivalent of another greenhouse gas — it's effectively a carbon offset for gas producers. The primary purpose of carbon credits is to reduce carbon dioxide and other greenhouse gas emissions from industrial activity in order to mitigate the impacts of global warming. Carbon credits are a tool for reducing greenhouse gas emissions.

Caps on greenhouse gas emissions are set by governments or regulatory agencies. Immediate emission reductions are not economically viable for some businesses. As a result, they can buy carbon credits to meet the emission cap. Voluntary Emissions Reduction is a carbon offset that is traded for credits in the over-the-counter or voluntary market (VER). Certified Emissions Reductions are emission units (or credits) generated within a regulatory framework with the goal of offsetting a project's emissions (CER). The fundamental distinction between the two is that the CER is regulated by third-party certifying authority, whilst the VER is not.

A prominent Development in the Global Carbon Credit Market is the adoption of an international carbon credit by numerous countries and state government entities. The European Union has embraced the Kyoto Protocol to the point where it launched the European Union Emission Trading Scheme (EU ETS) in 2015. The EU implements a basic cap and trade approach for EU enterprises and countries as a result of this.

However, because the United States government did not sign the Kyoto Protocol, there are no limits on carbon emissions in the country. Despite this, many businesses and state governments are pledging to decrease carbon emissions on a voluntary basis. For example, California's Cap-and-Trade Program, an effort taken by the state of California, began its own cap-and-trade program in 2013. Electric power stations, industrial operations, and fuel distributors are all subject to the rule. Furthermore, the absence of worldwide standards in the Carbon Credit Market is a major issue that could stymie market expansion throughout the projection period.