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.

For an in-depth analysis, you can refer sample copy of the report: 

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What Are Carbon Credits?

Carbon credits are essentially a way to balance out greenhouse gas emissions. Each credit allows you to emit one tonne of carbon dioxide equivalent (CO2e) or indicates that this amount has been removed from the atmosphere. These credits are vital in helping us meet our climate objectives by allowing governments, companies, or organizations to purchase them from projects that reduce or eliminate emissions, like renewable energy programs or forest restoration projects. You can find these credits being traded in two primary markets: compliance markets, which help fulfill legal emissions requirements, and voluntary markets, where companies buy them to offset their emissions and achieve their sustainability goals.

How Carbon Credits Function

In systems like cap-and-trade, carbon credits act as permits that limit the amount of CO2 emissions allowed, with the overall cap gradually tightening over time. Organizations can use these credits to offset their unavoidable emissions, which helps reduce their overall carbon footprint. These credits can be traded among various entities such as governments, businesses, and institutions, creating a global market aimed at cutting emissions. This strategy not only backs environmental initiatives but also promotes practices that lead to emission reductions.

Benefits and Project Types

Carbon credits are essential in the battle against climate change, as they direct funds toward projects that either cut down emissions or actively pull CO2 out of the air. They help organizations meet their climate targets, adhere to international agreements like the Paris Accord, and provide financial support for impactful initiatives. The kinds of projects that earn these credits include nature-based solutions like reforestation, the creation 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.                                

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.

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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