 |
| Climate And Carbon Finance Market |
The climate and carbon finance market facilitates projects that reduce greenhouse gas emissions and mitigate the effects of climate change. Carbon credits generated from projects such as renewable energy installations, reforestation efforts, and industrial emissions reductions can be traded in carbon markets. Owners of high emission assets purchase these carbon credits to offset their carbon footprint and meet regulatory compliance targets. The global climate change agreements and Paris Accord have accelerated the development of carbon pricing mechanisms and emissions trading schemes worldwide.
The climate and carbon finance market connects governments, corporations and
project developers to fund initiatives that curb emissions. Carbon offset
projects in sectors like forestry, waste management and energy efficiency help
lower the carbon intensity of businesses while generating tradeable carbon
credits. Carbon trading allows companies flexibility to lower emissions where
it is most cost-effective through market forces.
The global
Climate and Carbon Finance Market is estimated to be valued at US$ 529.44 Mn in 2024 and is expected
to exhibit a CAGR of 3.6% over the
forecast period 2024-2031, as highlighted in a new report published by Coherent
Market Insights.
Market key trends: One of the major trends in the climate and carbon finance
market is the rising participation in voluntary carbon markets. Many companies
set internal carbon pricing and emission reduction goals to achieve net zero
targets by 2050. They purchase voluntary carbon credits from nature-based
projects to offset hard-to-abate emissions. Corporate demand is driving new
program designs that align voluntary carbon standards with science-based
guidelines. Another key trend is the integration of climate risk into
investment decisions of large financial institutions and asset managers. As
climate change poses risks to global financial stability, investors are
increasingly shifting capital away from high-emission activities to low-carbon
technologies and climate solutions.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as climate and
carbon finance market requires large initial investments and established supply
networks. However, dropping prices of renewable energy equipment may encourage
new players to enter this market.
Bargaining power of buyers: The bargaining power of buyers is moderate as there
are many alternatives available in the market. However, demand for low carbon
solutions is increasing buyers influence.
Bargaining power of suppliers: The bargaining power of suppliers is low as raw
materials required for climate and carbon finance market such as renewable
energy components have many suppliers globally.
Threat of new substitutes: The threat of substitutes is moderate as there are
alternatives available such as traditional energy sources. However, stringent
regulations to reduce carbon emissions are driving demand for low carbon
solutions.
Competitive rivalry: The competitive rivalry is high among existing players to
gain higher market share through product innovations, partnerships and
geographical expansion.
Key Takeaways
The global Climate
And Carbon Finance Market Growth is expected to witness high growth
over the forecast period supported by stringent government regulations and
policies to reduce carbon emissions. The global Climate and Carbon Finance
Market is estimated to be valued at US$ 529.44 Mn in 2024 and is expected to
exhibit a CAGR of 3.6% over the forecast period 2024-2031.
Regional analysis: Asia Pacific region dominates the climate and carbon finance
market holding around 35% of the overall share in 2024 owing to robust growth
in renewable energy sector in China and India. Europe is also one of the major
markets for climate and carbon finance driven by the climate change agreements
and initiatives by European Commission to become carbon neutral by 2050.
Key players: Key players operating in the climate and carbon finance market
include International Paper Company, Georgia-Pacific LLC, Finch Paper LLC,
Burgo Group SPA, Alberta Newsprint Company Ltd., Rolland Enterprises Inc., P.H.
Glatfelter Co., American Eagle Paper Mills, Asia Pacific Resources
International Holdings Ltd., Canfor Corporation, Domtar Corporation, Twin
Rivers Paper Company Inc., UPM-Kymmene Oyj, BillerudKorsnäs AB, Catalyst Paper
Corporation, Clearwater Paper Corporation, Stora Enso Oyj, Verso Corporation,
Mitsubishi Paper Mills Limited, Delta Paper Corp., and others. International
Paper Company and Georgia-Pacific LLC are recognized as the market leaders
owing to their large product portfolio and global presence.
0 Comments