Latin America Carbon Credit Market to Hit USD 823.8 Billion Valuation by 2033 with a Growth Rate of 33.2%

Latin America Carbon Credit Market Forecast by 2033

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 America carbon credit market reached a value of USD 46.9 Billion in 2024 and is projected to expand significantly, reaching USD 823.8 Billion by 2033. The market is expected to grow at a CAGR of 33.2% between 2025 and 2033, driven by strong legislative frameworks, corporate sustainability commitments, and rising demand for certified carbon offsets.

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Growth Drivers of the Latin America Carbon Credit Market

Government Climate Policies and Net-Zero Commitments
Latin American governments have supported international goals with some exceptions listed below. They introduced stronger environmental regulations. They adopted carbon pricing as shown below. For example, Brazil has pledged to achieve net zero by 2050, act in order to reforest, and increase renewable energy. Mexico has also set stronger climate targets under the Paris Agreement. Greenhouse gas emissions will decrease 35% by 2030 for example. This develops a carbon trading infrastructure. In this infrastructure, emitters can participate in offsetting through certified emission-reduction projects. As wide-ranging regulatory and voluntary schemes emerge, it is one important source of growth.

Corporate Investments in Nature-Based Solutions

Demand for these credits has been further fueled by private-sector efforts. In September 2024, Meta signed a long-term deal with BTG Pactual's forestry arm to buy as many as 3.9 million carbon offset credits through 2038. Also in June 2024, Microsoft announced that it will buy up to 8 million nature-based carbon reduction credits from BTG Pactual Timberland Investment Group by 2043. A number of other similar projects have been launched, showing a trend toward multinational companies funding large-scale tree plantings and land restoration projects. These investments can protect biodiversity, protect communities, and enable the region to become the global leader in high-quality carbon credits.

Expansion of Voluntary Carbon Markets and Indigenous Participation

Businesses aim at sustainability when they use voluntary carbon markets. In February 2025, Indigenous communities plus local communities across Central America and South America called for reforms to the Architecture for REDD+ Transactions (ART). The communities want to improve transparency and how benefits are shared. By ensuring indigenous rights through meaningful community engagement in carbon credits, these initiatives make voluntary carbon markets credible and accountable. The initiatives help attract investments for promotion of social justice and environmental integrity through a consistent supply regarding high-quality voluntary credits.

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Latin America Carbon Credit Market Segmentation

Analysis by Type

• Compliance
• Voluntary

Analysis by Project Type

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

Analysis by End-Use

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

Analysis by Region

• 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.

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Latin America Carbon Credit Market News

• In February 2025, indigenous and local organizations from Central and South America proposed reforms to the Architecture for REDD+ Transactions (ART) to improve transparency and inclusion in carbon markets.
• In September 2024, Meta signed an agreement with BTG Pactual's forestry division to purchase up to 3.9 million carbon offset credits through 2038.
• In June 2024, BTG Pactual Timberland Investment Group committed to supply Microsoft with up to 8 million nature-based carbon reduction credits by 2043.
• Latin American forestry projects have seen increased investment, with over 7 million seedlings planted under reforestation initiatives linked to carbon offset programs.
• Regional governments continue to strengthen climate policies, positioning Latin America as a leading provider of high-quality carbon credits.

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 part of the customization.

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