Forestry & Land use Carbon Credit Market By Type (Forestry Carbon Credits, Land Use Carbon Credits, Combined Carbon Credits), By End-Use Industry (Corporations & Enterprises, Governments & Nonprofits, Environmental Organizations), By Application (Carbon Offset Programs, Carbon Footprint Reduction, Corporate Sustainability Initiatives), and By Region; Global Insights & Forecast (2024 – 2030).

As per Intent Market Research, the Forestry & Land use Carbon Credit Market was valued at USD 4.3 Billion in 2024-e and will surpass USD 9.1 Billion by 2030; growing at a CAGR of 13.5% during 2025 - 2030.

The Forestry & Land use Carbon Credit Market is an essential segment in the broader carbon credit industry, driven by the growing global focus on combating climate change through carbon offset initiatives. This market allows organizations to purchase carbon credits derived from forestry and land-use projects, which focus on reducing emissions by promoting sustainable land management practices, afforestation, reforestation, and conservation efforts. As the world increasingly prioritizes environmental sustainability and corporate responsibility, forestry and land-use carbon credits play a critical role in helping businesses meet their emissions reduction targets.

The demand for forestry and land-use carbon credits is fueled by regulations, voluntary corporate commitments to sustainability, and public and private sector collaboration to reduce greenhouse gas emissions. Carbon credits from these sectors not only help offset carbon footprints but also support biodiversity conservation, community development, and sustainable agricultural practices. As a result, the market for forestry and land-use carbon credits continues to expand, with a growing number of industries and organizations recognizing their value in achieving climate goals.

Forestry Carbon Credits Are Largest Due to Strong Demand for Carbon Offset Initiatives

Forestry Carbon Credits are the largest segment in the forestry and land-use carbon credit market. These credits are generated from activities related to forest preservation, afforestation, reforestation, and sustainable forest management, which sequester carbon from the atmosphere. Forestry carbon credits are widely recognized for their effectiveness in mitigating climate change because forests are significant carbon sinks, capable of absorbing large amounts of carbon dioxide over long periods.

The demand for forestry carbon credits is primarily driven by the need for businesses and governments to offset their emissions as part of climate action plans. Forest-based projects also provide multiple co-benefits, including biodiversity conservation, watershed protection, and support for indigenous communities. As companies around the world strive to meet net-zero emissions targets and comply with international climate agreements such as the Paris Agreement, forestry carbon credits continue to be a preferred option for carbon offset programs. This segment is expected to remain dominant as the global demand for verified carbon credits grows.

Land Use Carbon Credits Are Fastest Growing Due to Increasing Awareness of Sustainable Practices

Land Use Carbon Credits represent the fastest-growing segment in the forestry and land-use carbon credit market. These credits are generated from land-use practices that reduce emissions and enhance carbon sequestration, such as sustainable agriculture, agroforestry, and soil management. As the agricultural sector is one of the largest contributors to greenhouse gas emissions, adopting land-use practices that promote carbon storage in the soil is increasingly viewed as a key strategy for mitigating climate change.

Land use carbon credits are gaining traction due to the growing awareness of the environmental impact of agriculture and land management. Governments, corporations, and NGOs are investing in initiatives that integrate sustainable land-use practices to improve soil health, reduce deforestation, and increase carbon sequestration. Additionally, land-use projects are often more cost-effective than forestry projects, making them an attractive option for organizations seeking to reduce their carbon footprints at a lower cost. As the market for sustainable agriculture and land management grows, land-use carbon credits are expected to experience rapid expansion.

Carbon Offset Programs Application Is Largest Due to Regulatory and Voluntary Demands

The Carbon Offset Programs application is the largest segment in the forestry and land-use carbon credit market. Carbon offset programs enable organizations, governments, and individuals to compensate for their carbon emissions by purchasing carbon credits generated from forestry and land-use projects. These programs play a central role in meeting global climate targets, offering a flexible and verifiable solution for carbon reduction that complements direct emissions reductions.

As governments and industries set more ambitious carbon reduction goals, the role of carbon offset programs is becoming increasingly important. Organizations are seeking certified carbon credits to ensure that their offsetting activities are legitimate and contribute to meaningful environmental benefits. Additionally, voluntary carbon offset programs, driven by corporate sustainability initiatives, are becoming more popular as businesses strive to achieve net-zero emissions and align with stakeholder expectations. As a result, carbon offset programs remain the largest application for forestry and land-use carbon credits, further driving growth in this market.

Corporations & Enterprises End-Use Industry Is Largest Due to Corporate Sustainability Initiatives

The Corporations & Enterprises end-use industry is the largest segment in the forestry and land-use carbon credit market. With increasing pressure from stakeholders, consumers, and regulatory bodies, businesses across various sectors are adopting sustainability initiatives to reduce their carbon footprints. Purchasing forestry and land-use carbon credits is one of the most effective ways for corporations to offset their emissions while supporting global climate goals.

Corporations are also using carbon credits as part of their corporate social responsibility (CSR) strategies, as they seek to align with environmental, social, and governance (ESG) criteria. Major corporations in industries such as manufacturing, energy, and retail are increasingly integrating carbon credits into their sustainability strategies to meet net-zero goals and enhance their green credentials. As businesses continue to prioritize climate action and environmental stewardship, the demand for forestry and land-use carbon credits from corporations and enterprises is expected to remain strong, solidifying this segment as the largest end-use industry in the market.

North America Is Largest Region Due to Strong Regulatory Frameworks and Corporate Engagement

North America is the largest region in the forestry and land-use carbon credit market, driven by robust regulatory frameworks and strong corporate engagement in sustainability efforts. In the United States and Canada, environmental regulations, climate policies, and carbon offset programs have paved the way for increased investment in forestry and land-use carbon credit projects. Additionally, the region is home to many global corporations that are committed to achieving net-zero emissions and are actively purchasing carbon credits to offset their environmental impact.

North American governments, businesses, and environmental organizations are at the forefront of efforts to combat climate change, and the region has a well-established market for carbon credits. As companies in the region continue to adopt sustainable practices and pursue corporate sustainability goals, the demand for verified carbon credits from forestry and land-use projects is expected to continue growing. North America remains a key driver of innovation and expansion in the forestry and land-use carbon credit market.

Competitive Landscape and Key Players

The Forestry & Land use Carbon Credit Market is competitive, with several key players contributing to the growth and development of carbon offset projects. Leading companies in this market include Natural Capital Partners, South Pole Group, EcoAct, and Verra, among others. These companies specialize in developing, verifying, and trading carbon credits derived from forestry, land-use, and other environmental projects.

Competitive strategies in the market focus on enhancing project transparency, improving verification processes, and expanding carbon credit offerings to meet the growing demand from corporations and governments. Additionally, partnerships with environmental organizations, sustainability-focused businesses, and governmental bodies are key drivers of market growth. As the global focus on climate change intensifies, these key players are well-positioned to lead the way in providing high-quality forestry and land-use carbon credits to businesses and governments committed to reducing their carbon footprints.

Recent Developments:

• South Pole Group expanded its carbon credit portfolio by partnering with forestry conservation projects in Southeast Asia to enhance carbon sequestration efforts.
• Verra announced updates to its carbon credit certification process, aimed at increasing transparency and improving environmental impact reporting.
• Natural Capital Partners introduced a new set of carbon offset initiatives focusing on land use management and reforestation projects to meet growing demand for carbon credits.
• Carbon Credit Capital launched a blockchain-based platform to track and trade forestry and Land use carbon credits, ensuring greater transparency in the carbon credit market.
• BioCarbon Partners secured new funding to expand its land-based carbon offset projects, focusing on sustainable agriculture and forest management in Africa.

List of Leading Companies:

• TerraPass, Inc.
• ClimateCare Ltd.
• South Pole Group
• Ecosphere+
• Natural Capital Partners
• Carbon Credit Capital
• Forest Carbon Ltd.
• The Greenhouse Gas Management Institute
• Carbon Footprint Ltd.
• Verra
• Gold Standard Foundation
• BioCarbon Partners
• C-Quest Capital
• Envira International LLC
• Carbon Clean Solutions Ltd.

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