Latin America Carbon Credit Market Growing at 33.2% CAGR During 2025-2033

Latin America Carbon Credit Market Overview
Market Size in 2024: USD 46.9 Billion
Market Forecast in 2033: USD 823.8 Billion
Market Growth Rate (2025-2033): 33.2%

The Latin American carbon credit market size reached USD 46.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 823.8 Billion by 2033, exhibiting a growth rate (CAGR) of 33.2% during 2025-2033.

What Are Carbon Credits?

Carbon credits are like a balancing act for greenhouse gas emissions. Each credit gives you the right to emit one tonne of carbon dioxide equivalent (CO2e) or shows that this amount has been taken out of the atmosphere. These credits play a crucial role in helping us achieve climate goals by enabling governments, companies, or organizations to buy them from projects that cut down or eliminate emissions, such as renewable energy initiatives or forest restoration efforts. You can find credits being traded in two main markets: compliance markets, which help meet legal emissions limits, and voluntary markets, where companies buy them to offset their emissions and reach their sustainability targets.

How Carbon Credits Function

In systems like cap-and-trade, carbon credits serve as permits that cap the amount of CO2 emissions allowed, with the overall limit gradually decreasing over time. Organizations can also utilize these credits to balance out their unavoidable emissions, which helps lower their total carbon footprint. These credits can be exchanged among various parties like governments, businesses, and institutions creating a worldwide market for reducing emissions. This approach not only supports environmental projects but also encourages practices that save emissions.

Benefits and Project Types

Carbon credits play a crucial role in fighting climate change by channelling funds into projects that either reduce emissions or actively remove CO2 from the atmosphere. They assist organizations in reaching their climate goals, complying with international agreements like the Paris Accord, and providing financial backing for meaningful initiatives. The types of projects that earn these credits include nature-based solutions such as reforestation, the development of renewable energy sources, and carbon capture technologies that effectively eliminate CO2 for good.

Latin America Carbon Credit Market News

June 2025 - The UK government allocated £500 million to establish the country's first regional hydrogen transport and storage network, linking producers with industrial end-users across Merseyside, Teesside, and the Humber expected to create thousands of skilled jobs.

March 2025 - The government announced that 27 hydrogen projects were shortlisted for the Hydrogen Allocation Round 2 (HAR2), supporting low-carbon hydrogen across sectors such as sustainable aviation fuel, glass, brick manufacturing, and clean power; the initiative could attract over £1 billion private investment by 2029.

October 2024 - The UK finalized a £21.7 billion (≈ $28.5 billion) commitment across 25 years to two Track 1 industrial decarbonisation clusters (HyNet in the northwest and East Coast cluster around Teesside/Humber) that include major CCS-enabled hydrogen projects such as EET's HyNet and BP's H2Teesside.

August 2024 - The National Grid began a feasibility study into creating a hydrogen pipeline network connecting major industrial clusters not yet a formal launch but marking the government's intent to build transport infrastructure for hydrogen distribution.

For an in-depth analysis, you can refer sample copy of the report:
https://www.imarcgroup.com/latin-america-carbon-credit-market/requestsample

Latin America Carbon Credit Market Industry Segmentation:

Type Insights:

• Compliance
• Voluntary

Project Type Insights:

• Avoidance/Reduction Projects
• Removal/Sequestration Projects
• Nature-based
• Technology-based

End-Use Insights:

• Power
• Energy
• Aviation
• Transportation
• Buildings
• Industrial
• Others

Regional Insights:

• Brazil
• Mexico
• Argentina
• Columbia
• Chile
• Peru
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Ask Our Expert & Browse Full Report with TOC & List of Figure:

https://www.imarcgroup.com/request?type=report&id=30138&flag=C

Key highlights of the Report:

• Market Performance (2019-2024)
• Market Outlook (2025-2033)
• COVID-19 Impact on the Market
• Porter's Five Forces Analysis
• Strategic Recommendations
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.

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About Us:
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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