by The Canada carbon credit market involves the trading of carbon credits that represent one ton of carbon dioxide equivalent (CO2e). The credits allow regulated entities like utilities and manufacturers to comply with greenhouse gas emissions limits set by the Canadian government. The government plays a key role in determining allocations and managing the overall scheme to achieve its emissions reduction targets. As the need to transition to clean energy grows, government support for carbon pricing and offset programs is driving trends in the Canada carbon credit market.
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.
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.
Key Takeaways
Key players: WGL Holdings, Inc. is one of the leading providers of carbon offsets in Canada. Other prominent players like Enking International, Green Mountain Energy are also active in sourcing credits from various emission reduction projects.
Growing demand: Stringent regulations and carbon pricing policies have boosted demand for credits from industries. Additionally, voluntary Offset purchases by individuals and organizations is contributing to market growth.
Global expansion: Canadian companies are exploring opportunities in international compliance markets like Europe. At the same time, foreign players are showcasing interest in investing in the country’s offset generation potential.
Market Key Trends
One of the key trends in Canada’s carbon credit market is the linkage with provincial systems. Provinces like Alberta, Quebec, Ontario and British Columbia have implemented varied carbon pricing mechanisms which are now being aligned and linked at the federal level. This integrated national carbon market is expected to achieve substantial emissions reductions in the coming years with improved market efficiencies.
Porter’s Analysis
Threat of new entrants: Moderate, as new firms require substantial capital investments and established reputation to penetrate market.
Bargaining power of buyers: High, as few large buyers can negotiate prices and influence standards in the market.
Bargaining power of suppliers: Moderate, as many domestic and international suppliers offer carbon credits.
Threat of new substitutes: Low, as carbon credits are unique instrument with no close substitutes for reducing carbon footprint.
Competitive rivalry: High, as major players compete on price, certificate quality, and complementary sustainability services.
Geographical regions
The Canada carbon credit market is concentrated in Central and Western Canada in terms value. The provinces of Alberta, British Columbia, Manitoba and Saskatchewan account for over 80% of market share due to large oil and gas industry as well as coal-based power generation in these regions.
The Eastern Canada region, consisting of Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador, is the fastest growing geographical segment. Stringent climate change policies and initiatives of provincial governments are driving higher carbon credit demand from industrial and commercial sectors in these provinces.
*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
