Rising Regulatory Initiatives Drives Climate And Carbon Finance Market Growth

Climate And Carbon Finance Market
Climate And Carbon Finance Market

Climate And Carbon Finance Market, By Market Type (Voluntary Market, Compliance Market), By Project Type (Renewable Energy Projects, Energy Efficiency Projects, Forest Carbon Projects, Methane Capture and Utilization Projects, Waste Management Projects, Agriculture and Land Use Projects, Others), By Buyer Type (Corporates, Governments, Financial Institutions, Non-Governmental Organizations (NGOs), Individuals), By Carbon Market Mechanism (Cap and Trade (Emissions Trading System), Carbon Offsetting (Voluntary Carbon Credits), Carbon Pricing (Carbon Tax or Fee)), By Sector Focus (Energy and Utilities, Transportation, Manufacturing and Industrial Processes, Agriculture and Forestry, Buildings and Construction, Waste Management, Others), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa ) - Size, Share, Outlook, and Opportunity Analysis, 2023 - 2030

The global Climate and Carbon Finance Market is estimated to be valued at US$ 355.44 billion in 2022 and is expected to exhibit a CAGR of 29.3 % over the forecast period as highlighted in a new report published by Coherent Market Insights.

Market Overview

Climate finance should not be misinterpreted with carbon finance as the two are completely dissimilar; climate finance states that funds needed for referring the climate change while carbon finance is the revenue recognized by projects from sale of carbon credits earned.

Competitive Landscape:

Key players involved in the growth of the global Climate and Carbon Finance Market are Climate Finance Partners, Carbon Credit Capital, Natural Capital Partners, ClimateCare, First Climate, Gold Standard, South Pole Group, Climate Trust Capital, ClimatePartner, Carbon Clear, EcoAct, Ecosphere+, Verra, Climate Friendly, and Forest Carbon.

Market Key Drivers:

The rising necessity to decrease the greenhouse gas emission is expected to propel the growth of the global Climate and Carbon Finance for Market. For instance, as per facts and figures around 21% of greenhouse gas emitted releases from electricity.

Increasing international agreements from the key players for the expansion is projected to propel the growth of the global Climate and Carbon Finance Market. For instance, Paris agreement makes a framework for all the regions to notice and observe the climate change collectively.

Covid-19 Impact Analysis:

The Covid-19 outbreak has significantly affected the growth of the global Climate and Carbon Finance for Market due to the rising cases of pandemic as there was the strict imposition of lockdown and the movement of people was reduced due to which the there was a decrease in the usage and transportation of fuels from one region to other, and this led to the decrease in greenhouse gases and carbon emission.

Key Takeaways:

The global Climate and Carbon Finance for Market is expected to exhibit a CAGR of 29.3 % during the forecast period owing to the rising demand of the stakeholders. For instance, the investors are identifying the fiscal risks related to climate change and option for returns in low-carbon and climate-resilient segment.

Among regions, North America, Asia Pacific and Europe anticipated to witness robust growth in the global Climate and Carbon Finance Market due to increasing investments, increasing approvals and launches, rising partnerships and collaborations and increasing growth of greenhouse gases. For instance, Asset Management Funds have introduced the launch of Climate and ESG funds.

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