New Report Reveals Latin America Carbon Credit Market to Witness 33.2% Annual Growth

Market Overview

The Latin America carbon credit market size was USD 46.9 Billion in 2024. It is expected to reach USD 823.8 Billion by 2033, growing at a CAGR of 33.2% during 2025-2033. Growth is propelled by legislative frameworks, corporate net-zero pledges, international carbon trading systems, concerns over deforestation, and increased investments in nature-based solutions. The market is also fueled by government policies, voluntary carbon markets, and rising demand for certified offsets.

Download a sample copy of the report: https://www.imarcgroup.com/latin-america-carbon-credit-market/requestsample

Study Assumption Years
Base Year: 2024
Historical Years: 2019-2024
Forecast Years: 2025-2033

Latin America Carbon Credit Market Key Takeaways
The Latin America carbon credit market size was USD 46.9 Billion in 2024.
The market is projected to reach USD 823.8 Billion by 2033.
The market is expected to grow at a CAGR of 33.2% during 2025-2033.
Rising demand for large-scale carbon offset agreements, with emphasis on forestry and land restoration initiatives.
Expanding investment in nature-based carbon removal programs supported by financial institutions and investors.
Long-term agreements from major corporations such as Meta and Microsoft highlight the market potential.
Legal frameworks and corporate sustainability goals are driving the production and demand for high-quality carbon credits.

Market Growth Factors

The carbon credit market in Latin America and the Caribbean is driven by legislation, corporate net-zero plans, and cross-community and cross-country carbon trading mechanisms that allow the international trade of carbon credits. Other elements that stimulate demand are that people increasingly know about deforestation, investors invest in nature-based solutions such as reforesting and rehabilitating land, public policy makers target sustainable land use and developers develop voluntary markets. As a result, the market is projected to grow at a 33.2% CAGR throughout 2025 to 2033.

Demand for climate mitigation measures through long-term contracts for carbon offsets is increasing along with larger contracts in Latin America, including multi-year contracts for certified carbon credits in forestry and land restoration. In addition to biodiversity conservation and local economic development, these programs are also created as these transactions will count towards global sustainability goals. For example, in September 2024, Meta signed an agreement to purchase up to 3.9 million carbon offset credits from BTG Pactual's forestry division through 2038, this shows the region's credibility and market potential.

Largescale purchases of nature-based carbon removal are increasing, with companies committing to multiple years of purchasing to offset emissions using forest restoration and land restoration. By June 2024, BTG Pactual Timberland Investment Group committed to selling as many as 8 million nature-based carbon reduction credits to Microsoft by 2043. A USD 1 Billion forestry program seeks climate change adaptation, biodiversity gains achievement, and socio-economic benefits for local communities. Supported by regulations and with growing demand for strong, high-quality verified carbon removal credits, the region will lead the high-end carbon offset market across the globe.

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

Market Segmentation

Type Insights:

Compliance: Includes carbon credits used to meet regulatory obligations.
Voluntary: Includes credits purchased outside of compliance requirements for offsetting or sustainability purposes.
Project Type Insights:
Avoidance/Reduction Projects: Projects focused on avoiding or reducing emissions.

Removal/Sequestration Projects:

Nature-based: Projects involved with natural methods such as forestry and land restoration.
Technology-based: Projects leveraging technological solutions for carbon removal.

End-Use Insights:

Power: Carbon credits used for power generation sector.
Energy: Credits applied in broader energy sector applications.
Aviation: Credits for the aviation industry's emissions offset.
Transportation: Applied in transportation sector emissions offset efforts.
Buildings: Credits related to building and construction emissions.
Industrial: Carbon offsets for industrial sector emissions.
Others: Includes other miscellaneous end uses.

Regional Insights

Brazil, Mexico, Argentina, Columbia, Chile, Peru, and others are the major regions analyzed for their carbon credit market contributions. Brazil stands out as a dominant market, supported by extensive forestry projects and investments that enhance biodiversity and socio-economic benefits. Legal frameworks combined with business sustainability goals contribute to the region's growing role as a major source of high-quality carbon credits.

Recent Developments & News

In February 2025, indigenous and local organizations from Central and South America proposed recommendations to the Architecture for REDD+ Transactions (ART) aiming to improve jurisdictional carbon market regulations. These proposals focus on promoting indigenous rights, ensuring free, prior, and informed consent, and establishing fair benefit-sharing arrangements. Implementation could close an estimated USD 4.1 Trillion nature funding shortfall by 2050. In September 2024, Meta agreed to purchase up to 3.9 million carbon offset credits from BTG Pactual's forestry segment by 2038, in a transaction worth approximately USD 16 Million, supporting Meta's net-zero emissions goal by 2030.

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

Competitive Landscape

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

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No: (D) +91 120 433 0800
United States: +1-201971-6302

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.

This release was published on openPR.