Forestry & Landuse Carbon Credit Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2032

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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

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