Major Industry Study Maps USD 823.8 Billion Business Opportunity Across Latin America Carbon Credit Market Ecosystem

Market Overview

The Latin America carbon credit market size reached USD 46.9 Billion in 2024 and is expected to grow to USD 823.8 Billion by 2033, reflecting a CAGR of 33.2% from 2025 to 2033. Growth is driven by legislative frameworks, corporate net-zero pledges, the rise of international carbon trading systems, deforestation concerns, and investments in nature-based solutions. Government policies, voluntary carbon markets, and demand for certified offsets further propel the market forward. For detailed insights, visit the Latin America Carbon Credit Market 

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

Latin America Carbon Credit Market Key Takeaways

• The market size was USD 46.9 Billion in 2024.
• The market is projected to grow at a CAGR of 33.2% during 2025-2033.
• Forecast period spans from 2025 to 2033.
• There is a rising demand for large-scale carbon offset agreements with organizations entering multiyear contracts emphasizing forestry and land restoration.
• Financial institutions facilitate carbon credit transactions, aligning with global sustainability goals.
• Latin America is emerging as a significant source of reliable, high-quality carbon credits supported by legal frameworks and business sustainability objectives.
• Major deals include Meta’s purchase agreement of up to 3.9 million carbon offset credits from BTG Pactual's forestry division through 2038.

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Market Growth Factors

The growth of the Latin America carbon credit market is propelled by strong legislative frameworks and corporate commitments to net-zero targets. These frameworks provide regulatory backing that supports market expansion, encourages transparency, and promotes investor confidence in certified carbon credit projects. This regulatory environment, combined with international carbon trading systems, creates a fertile ground for market growth.

There is a significant increase in long-term collaborations focusing on nature-based carbon offset projects. These include forestry and land restoration initiatives that reduce emissions, conserve biodiversity, and stimulate local economies. Financial institutions and investors have become vital facilitators in these transactions, ensuring carbon credits are verified and aligned with global sustainability objectives.

Investment in large-scale carbon removal initiatives is expanding rapidly. Noteworthy examples include BTG Pactual Timberland Investment Group's commitment to supply Microsoft with up to 8 million nature-based carbon reduction credits by 2043, backed by a USD 1 billion forestry and restoration program. Such initiatives enhance trust in carbon removal technologies and demonstrate the region’s capacity as a provider of high-quality offsets.

Market Segmentation

Type Insights:

• Compliance: The market segment driven by government policies and mandatory regulations demanding emission reductions.
• Voluntary: This segment is fueled by corporate net-zero pledges and voluntary agreements to offset carbon footprints.

Project Type Insights:

• Avoidance/Reduction Projects: Initiatives focused on avoiding emissions through various environmental activities.
• Removal/Sequestration Projects:
• Nature-based: Projects including forestry and land restoration aimed at carbon sequestration.
• Technology-based: Carbon removal through technological solutions, complementing nature-based efforts.

End-Use Insights:

• Power: The energy production sector's demand for carbon credits to offset emissions.
• Energy: Broader energy-related applications that utilize carbon credits for sustainability.
• Aviation: Airlines adopting carbon offsetting to meet emission targets.
• Transportation: Transportation sectors seeking carbon mitigation solutions.
• Buildings: Construction and building operations integrating carbon credits.
• Industrial: Industrial applications contributing to carbon credit demand.
• Others: Miscellaneous uses across various sectors.

Regional Insights

Brazil, Mexico, Argentina, Columbia, Chile, and Peru are major regional markets in Latin America for carbon credits. The report highlights Brazil’s strong legal frameworks and business sustainability goals supporting its position as a dominant source of high-quality carbon credits. The market’s forecast growth at a CAGR of 33.2% during 2025-2033 reflects rising regional commitments to emission reduction and carbon offset initiatives.

Recent Developments & News

In February 2025, indigenous and local organizations from Central and South America proposed recommendations to the Architecture for REDD+ Transactions (ART) to enhance openness and inclusion in jurisdictional carbon market regulations, promoting indigenous rights and fair benefit-sharing. This move could close a USD 4.1 Trillion nature funding gap by 2050. In September 2024, Meta agreed to purchase up to 3.9 million carbon offset credits from BTG Pactual's forestry segment through 2038, supporting Meta's net-zero target by 2030. These credits arise from notable reforestation efforts, including planting over 7 million seedlings.

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Key Players

• BTG Pactual
• Meta
• BTG Pactual Timberland Investment Group (TIG)
• Microsoft

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.

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