by The Kenya carbon credit market deals in carbon offsets or carbon credits that are generated by emitting less greenhouse gases or removing carbon dioxide from the atmosphere. Carbon credits in Kenya are generated by implementing projects related to renewable energy, energy efficiency, reforestation, and clean cooking. These carbon credits can then be bought and sold in the compliance or voluntary carbon markets. The credits are traded as a permit that allows the bearer to emit one tonne of carbon dioxide or an equivalent amount of another greenhouse gas. The Global Kenya Carbon Credit Market is estimated to be valued at US$ 475.7 Mn in 2024 and is expected to exhibit a CAGR of 32% over the forecast period of 2024-2031.
Key Takeaways
Key players: Key players operating in the Kenya 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.
Growing demand: There is a growing demand for carbon credits in Kenya due to the increasing focus on reducing carbon emissions and battling climate change. The compliance carbon market is expected to drive the majority of demand as companies and countries aim to meet their nationally determined contributions under the Paris Agreement.
Global expansion: Leading players in the Kenya carbon credit market are focusing on expanding their global footprint and establishing strategic partnerships with international organizations working on sustainability and climate initiatives. This will help widen the potential customer base and boost overall sales revenues.
Market Key Trends
One of the key trends gaining traction in the Kenya carbon credit market is the development of projects related to clean cooking solutions. A sizable portion of the population still relies on traditional biomass for cooking and heating purposes. This contributes significantly to overall emissions. Thus, carbon credits are being generated by implementing viable clean cooking projects using ethanol fuels, biogas, and improved cookstoves. This is expected to further propel the growth of the market over the coming years.
Porter’s Analysis
Threat of new entrants: New players may face high initial investment costs for carbon offset projects and certification. Bargaining power of buyers: Large volume buyers like corporations can negotiate better prices for carbon credits. Bargaining power of suppliers: A few large project developers and standards organizations hold significant influence over carbon credit supply.
Threat of new substitutes: Alternatives like renewable energy projects and energy efficiency pose threats but carbon offsets still have wide applicability. Competitive rivalry: Competition is intense as players compete fiercely on project quality, pricing and customer service.
Geographical regions with market concentration in terms of value Currently, a large portion of the valued traded in the Kenya carbon credit market is concentrated in North America and Western Europe. These regions have ambitious emissions reduction targets and many large corporations with carbon offset obligations under mandatory cap and trade schemes.
Fastest growing region The Asia Pacific region is projected to witness the fastest growth in the Kenya carbon credit market during the forecast period from 2024-2031. Rapid industrialization and economic development in countries like China, India and Indonesia is boosting carbon emissions. At the same time, growing environmental awareness and net zero commitments are driving carbon offset adoption.
What Are The Key Data Covered In This Kenya Carbon Credit Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Kenya Carbon Credit ‘s growth between 2024 and 2031.
:- Accurate calculation of the size of the Kenya Carbon Credit and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Kenya 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 Kenya Carbon Credit vendors
FAQ’s
Q.1 What are the main factors influencing the Kenya 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 Kenya Carbon Credit companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Kenya 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 - Alice Mutum
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn
