Canada Carbon Credit Market To Witness Significant Growth Owing To Rising Environmental Regulations

 

The Canada carbon credit market is a platform that enables trading of carbon credits within Canada. Carbon credits, also known as carbon offsets, are permits that allow emitters to emit one tonne of carbon or carbon equivalent into the atmosphere. They can be traded amongst emitters and organizations looking to offset their emissions. The Canada carbon credit market enables companies and individuals to offset their greenhouse gas emissions by purchasing verified emissions reductions from emission-reducing projects.

The global Canada carbon credit market is estimated to be valued at US$ 1,797.7 Mn in 2024 and is expected to exhibit a CAGR of 11.% over the forecast period 2024-2031. With environmental regulations in Canada becoming stringent to curb carbon emissions and combat climate change, the demand for carbon offsets is growing in the country. Carbon credits allow organizations to offset their emissions footprint and achieve emission compliance goals in a cost-effective manner. Industries that frequently use carbon offsets include transportation, utilities, manufacturing, and commercial real estate.


Key Takeaways

Key players operating in the Canada carbon credit market are WGL Holdings, Inc., Enking International, Green Mountain Energy, Native Energy, Cool Effect, Inc., Sustainable Travel International, 3 Degrees, Terrapass, and Sterling Planet, Inc. These players are focusing on expanding their carbon offset project portfolios as well as trader and broker network in Canada to benefit from the growing voluntary carbon market.
There is a significant opportunity for Canadian organizations to invest in high-quality domestic carbon offset projects across sectors such as forestry, landfill methane capture, and renewable energy. Such investments would help reduce the country's reliance on imported carbon offsets. The demand for offsets in Canada is likely to rise manifold by 2031 with the government planning to implement legislated cap-and-trade programs in additional provinces.
Major carbon credit buyers are also eyeing the Canadian market for compliance and voluntary offsets to meet their sustainability targets. International platforms are collaborating with Canadian traders to facilitate global transactions and expand opportunities for project developers. This is expected to strengthen Canada's position as a key player in the international voluntary carbon market.


Market Drivers

Stringent climate change policies and carbon pricing programs: With federal and provincial governments setting ambitious emission reduction targets, compliance carbon markets and carbon pricing programs are being established across Canada. This is creating demand for carbon offsets.

Growing emphasis on ESG goals among organizations: More businesses are committing to science-based emission reduction targets and investing in offsets to achieve net-zero emissions scopes. This is driving growth in the voluntary offset market.


Market Restraints

Uncertain regulatory environment: Frequent changes in climate policies and carbon pricing programs create uncertainty amongst market participants. This hampers long-term planning.

Concerns around additionality and permanence of offset projects: Lack of robust methodologies to ascertain additional emission cuts and ensure non-reversal of credits over time limits growth potential.

Segment Analysis

The Canada carbon credit market is segmented into forestry, transportation, electricity, waste management, and others. The forestry segment currently dominates the market as the Canadian government focuses heavily on curbing carbon emissions from deforestation. Credits from reforestation programs account for over 30% of the total credits traded annually in Canada.

Global Analysis

Regionally, Western Canada constitutes the fastest growing regional market for carbon credits. The provinces of Alberta and British Columbia account for about 60% of Canada's total annual carbon emissions. Stringent regulations and incentive programs by provincial governments have accelerated carbon credit activity in industries like oil & gas and transportation. Alberta has emerged as the largest carbon market in Canada due to initiatives that put a price on industrial greenhouse gas emissions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Get more insights on this topic: https://www.trendingwebwire.com/canada-carbon-credit-market-primed-to-grow-owing-to-increased-legislations-on-carbon-emissions/

 

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)

 

What Are The Key Data Covered In This Canada Carbon Credit  Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the Canada Carbon Credit 's growth between 2024 and 2031.

:- Accurate calculation of the size of the Canada Carbon Credit  and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- Canada Carbon Credit  Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of Canada Carbon Credit  vendors

FAQ’s

Q.1 What are the main factors influencing the Canada Carbon Credit ?

Q.2 Which companies are the major sources in this industry?

Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top Canada Carbon Credit  companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the Canada Carbon Credit ’s distributors, traders, and dealers?

Q.6 How are market types and applications and deals, revenue, and value explored?

Q.7 What does a business area’s assessment of agreements, income, and value implicate?


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