by The Canada carbon credit market is primarily driven by initiatives to curb greenhouse gas emissions in the country. Carbon credits help mitigate emissions by enabling capped companies to offset their emissions in a cost-effective manner. The market enables trading of credits between companies to facilitate compliance with emission reduction targets.
The 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.
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 provide carbon offsetting solutions to corporate as well as individual customers. The market offers opportunities for monetizing emission cuts and allowing flexible compliance with regulations. Additionally, growing cross-border trading of credits is opening up opportunities for Canadian market participants to engage in global carbon markets.
Key Takeaways
Key players: WGL Holdings, Inc., Enking International, Green Mountain Energy, Native Energy, Cool Effect, Inc., Sustainable Travel International, 3 Degrees, Terrapass, and Sterling Planet, Inc. are the major players in the Canada carbon credit market.
Key opportunities: The market provides opportunities for monetizing emission cuts and allowing flexible compliance with regulations. Additionally, growing cross-border trading of credits is opening up opportunities for Canadian market participants.
Global expansion: Canadian carbon credit market players are well positioned to engage in global carbon markets owing to growing cross-border trading of credits. This allows them to leverage international opportunities.
Market Drivers
The primary driver for the Canada carbon credit market is the increasing emphasis on curbing greenhouse emissions in the country. The Canadian government has introduced various policies and regulations like the Pan-Canadian Framework on Clean Growth and Climate Change to reduce emissions. Carbon credits help companies meet their emissions targets in a cost-effective way and support Canada’s climate goals. This is expected to significantly drive the demand for carbon credits over the forecast period.
PEST Analysis
Political: The Government of Canada has implemented stringent environmental regulations and policies to encourage reduction of greenhouse gas emissions and promote use of renewable energy. These policies will drive growth in the carbon credit market.
Economic: Strong economic growth in Canada has led to rise in energy consumption and carbon emissions. Carbon pricing implemented by the government provides monetary incentives for adoption of low carbon technologies and investing in carbon credits.
Social: Rising environmental consciousness among population and businesses is influencing demand for carbon offsets and credits. Companies face pressure from investors, customers and employees to neutralize carbon footprint and switch to green sources of energy.
Technological: Adoption of renewable energy, energy efficiency solutions, electric vehicles etc. is reducing dependence on fossil fuels. Carbon accounting and trading platforms powered by blockchain offer transparency and help connect buyers and sellers in the carbon credit market.
Geographical concentration: Majority of value in the Canada carbon credit market is concentrated in provinces of Ontario and Quebec which account for over 60% of the country’s population and economic activity. Large industrial base and cities in these regions drive high carbon emissions and corresponding demand for offsets.
Fastest growing region: The western provinces of Alberta and British Columbia have experienced robust economic growth fueled by oil & gas industry and cleantech sector respectively. Strong GDP expansion coupled with supportive policies are contributing to fastest growth in carbon credit demand from these regions compared to national average.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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?
About Author - Ravina Pandya
Ravina Pandya,a 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, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
