Forestry & Landuse Carbon Credit Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2032
Page: 215 | Report Code: EP240412 | Research Suite: Report (PDF) & Market Data (Excel)
Forestry & Landuse Carbon Credit are a form of carbon offsets represents the sequestration or avoidance of greenhouse gas emissions from sustainable forestry practices and Land Management where these credits may be generated through activities like afforestation, reforestation, avoided conversion and improved forest management where this process involves the development of a carbon offset which adheres to the established guidelines and methodologies which are approved by standard setting bodies that ensures. transparency quality and integrity of the carbon credits generated.
These
practices not only captures carbon dioxide from the
atmosphere but also provides additional environmental and social benefits,
which includes biodiversity conversion, soil erosion prevention and rural
livelihood improvement and moreover carbon and are traded in carbon markets
where companies, governments, individuals may purchase them to offset their own
carbon emissions and meet regulatory requirements and by this mechanisms
forestry and land use carry its plays a crucial role in promoting sustainable
land management practices and conservation of ecosystem which leads to the
contribution of mitigating efforts towards the climate change.
MARKET
OVERVIEW
The global market valuation of Forestry & Landuse Carbon
Credit market was valued at approximately USD 22.4 Billion in 2023 and is
projected to reach USD 68.7 Billion in 2032 exhibiting a CAGR of 13.9% during
the forecast period of 2024-2032, forestry and landuse carbon credit are
crucial tools that fight against climate change providing a range of benefits
which includes biodiversity conservation, water quality improvement and
sustainable livelihoods for local communities which makes it a sustainable
market and growing market.
GROWTH
DRIVERS
The international commitments, like the Paris Agreement, drives demand for forestry and land use carbon edits where this initiative aims to reduce greenhouse gas emissions and combat from climate change by investments in projects that sequester carbon through sustainable forestry and land management practices drives the market towards growth.
The supportive regulatory frameworks and carbon pricing mechanisms which incentivizes the adoptions of forestry and landuse carbon credit projects and such policies like emission trading systems and carbon taxes creates a demand for carbon credits which stimulates the market towards growth and encourages the more investments in carbon offset projects. Companies are setting sustainability goals, which includes carbon neutrality and net zero emission target and to achieve these goals the companies are investing in forestry and land use carbon credits as a part of their carbon offsetting strategies which find which drives the demand for credits and fuels the market growth.
The institutional investors, funds and
individuals seeks for sustainable projects that are aligned with environmental,
social and governance criteria where carbon credit projects offers attractive investment opportunities for driving
the capital flows into the market.
MARKET
SEGMENTATION:
·
By Type- voluntary and
compliance
·
By Region - North America,
Europe, Asia Pacific, the Middle East and Africa, and South America
Forestry
& Landuse Carbon Credit Market by Type Segment Review:
In voluntary carbon credits purchased voluntarily by organizations, businesses and individuals to get their carbon footprint and demonstrate a new environment responsibility where these credits are not mandated by regulatory requirements, but they are driven by corporate sustainability goals consumer demand and social responsibility initiatives. The buyers invest in forestry and land use projects to support the initiatives like reforestation, afforestation, deforestation, sustainable land management and avoided deforestation and it's often adhere to certification standards like VCS or the gold standard which ensures the transparency and credibility in these projects.
Compliance carbon credits are
generated through projects that are compliant with regulatory frameworks and
standards which are established by government authorities or international
agreements where these credits are typically mandated for entities which are
subject to emissions reduction targets or regulatory requirements like the
companies operating in sectors covered by emission trading systems or
regulatory cap and trade programs. In this segment, the buyers purchases carbon credits to meet their regulatory
obligations and achieve emissions reduction targets. This segment markets are
governed by regulatory bodies which may involve stricter requirements and
oversight compared to voluntary market.
Forestry
& Landuse Carbon Credit Market by Regional Analysis:
North America is a significant player Forestry and Landuse Carbon Credit market driven by robust environmental policies. and growing emphasis on sustainability and presence of key global companies in this market. Europe is a significant market for forestry and land use carbon credit driven by the EU Emissions trading system EU ETS which covers various sectors including energy, industry and aviation and ambitious renewable and energy targets and climate goals under the European Green Deal and the Paris Agreement. Asia Pacific is a rapidly growing market driven by the rapid economic growth and the industrialization in countries like China and India, which has led to increased greenhouse emissions and that drives the demand for carbon offset solutions where forestry and land use projects offer opportunities for carbon sequestration and emissions reductions.
The Middle
East and Africa is a merging market driven by the investments in renewable
energy projects, which include solar and wind farms and reduction on the
dependence of fossil fuels present in this region. South America is a promising
market due the of abundant forested areas, which includes Amazon Rainforest,
which is a which is crucial for global carbon sequestration and biodiversity
conservation and government initiatives like our REDD+ that incentive ways the
preservation of forests and the adoption of sustainable land use practices.
Key
Challenges:
The large number of industries are still unaware of the
benefits of forestry and land use carbon credits and hence which shows the
adoption is relatively low which requires a lot of awareness and that is one of
a significant challenge for this market. Number of countries across the world
are under reported for the greenhouse emissions data and the aim to protect the
globe for the prevalence of climate change is built on data however, the data
the globe is depending on is erroneous and also the
companies provides false data to the authorities to
gain the cheat sheet for their operation in their environment and as a result
it poses a constraint to the market. The establishment of forest and land use
carbon credit projects requires a significant investment in land acquisition,
reforestation or afforestation activities, monitoring systems and certification
processes as well as which involves long term commitments and large capitals
which is one of a significant key challenge for the market.
Competitive
Landscape:
The companies that are involved in forestry and land use
carbon credit market are focusing on identifying developing carbon offset
projects, which includes initiatives or activities like land acquisition,
reforestation or afforestation efforts and implementation of sustainable land
management practices with monitoring and verification system. Also investing in
research and technology to optimize the project efficiency and to maximize
carbon sequestration potential and for the compliance and surety compliance
with certifications like VCS or CCB.
Global
Key Players:
·
The Carbon Trust
·
3 Degrees
·
VERRA
·
PwC
·
South Pole
·
EcoAct
·
ClimeCo
·
Climate Impact Partners
·
ALLCOT
· Ecosecurities
Attributes |
Details |
Base Year |
2023 |
Trend Period |
2024 – 2032 |
Forecast Period |
2024 – 2032 |
Pages |
215 |
By Type |
Voluntary and
Compliance |
By region |
North America, Europe,
Asia Pacific, the Middle East and Africa, and South America |
Company Profiles |
The Carbon Trust, 3
Degrees, VERRA, PwC, South Pole, EcoAct, ClimeCo, Climate Impact Partners, ALLCOT,
Ecosecurities |
Edition |
1st edition |
Publication |
April 2024 |