Market Overview

The Latin America carbon credit market size was valued at USD 46.9 Billion in 2024. IMARC Group forecasts the market to rise to USD 823.8 Billion by 2033, growing at a CAGR of 33.2% during the forecast period of 2025-2033. The market growth is driven by legislative frameworks, corporate net-zero pledges, international carbon trading systems, escalating deforestation concerns, and increased investments in nature-based solutions. Government policies and demand for certified offsets further propel market expansion.

Study Assumption Years

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

Latin America Carbon Credit Market Key Takeaways

• Current Market Size: USD 46.9 Billion in 2024
• CAGR: 33.2%
• Forecast Period: 2025-2033
• There is a rising demand for large-scale carbon offset agreements with multi-year commitments to nature-based projects, especially forestry and land restoration.
• Investments in forestry programs aid in emissions reduction, biodiversity conservation, and local economic benefits.
• Financial institutions actively support carbon credit transactions aligning with global sustainability goals.
• Latin America is emerging as a significant source of high-quality carbon credits supported by legal frameworks and corporate sustainability targets.
• Major long-term agreements include Meta's commitment to purchase 3.9 million carbon credits from BTG Pactual's forestry division through 2038.

Sample Request Link: https://www.imarcgroup.com/latin-america-carbon-credit-market/requestsample

Market Growth Factors

The growth of the Latin America carbon credit market has been driven by a combination of legislation, private sector net-zero commitments, international carbon markets, growing understanding of and concerns over deforestation, investment in nature-based solutions, government support of voluntary carbon markets, and growing demand for verified and certified carbon offset credits. These factors are part of a wider trend seen in voluntary carbon markets globally.

Increasing demand for large corporate carbon offset transactions has been identified as a growth opportunity. Organizations have begun entering into multi-year purchasing contracts to purchase verified carbon credits from forestry and land restoration projects. These investments provide not only emissions reductions but biodiversity benefits and community development. Financial institutions can ease large scale purchasing transactions by enabling and mobilizing investments in carbon offset projects. Long-term contracts trend, suggesting nature-based carbon removal technologies become reliable and trustworthy.

Voluntary carbon markets grow. Large-scale carbon dioxide removal methods are for use. Companies commit for years to offset their emissions to reforestation, land restoration, and other regulatory-backed programs of worth. Forest projects get funding from banks and private investors to further global net-zero goals. Besides their carbon benefits, they can help biodiverse and benefit local communities, and they will be key to addressing climate change. The focus upon certified carbon removal credits means Latin America could become a leading provider of long-term high-quality carbon offsets.

Market Segmentation

Type Insights:

• Compliance
• Voluntary

The report provides detailed analysis and breakup of the market based on compliance and voluntary types.

Project Type Insights:

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

These represent the segmentation by project nature covering avoidance/reduction and removal/sequestration projects, further divided into nature-based and technology-based categories.

End-Use Insights:

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

A detailed breakup is provided on the basis of end-use sectors including power, energy, aviation, transportation, buildings, industrial applications, and others.

Regional Insights

Brazil, Mexico, Argentina, Columbia, Chile, Peru, and others constitute the major regional markets. While no specific market share or CAGR by region is provided, Latin America as a whole is positioned as a growing major source of high-quality carbon credits, supported by robust legal frameworks and sustainability goals. The region's increasing role in providing certified carbon offsets underpins its importance in the global carbon credit market.

Recent Developments & News

In February 2025, indigenous and local organizations in Central and South America proposed recommendations to the Architecture for REDD+ Transactions (ART) to enhance openness and inclusion in jurisdictional carbon market regulations. These proposals aim to promote indigenous rights, ensure free, prior, and informed consent, and improve benefit-sharing arrangements. Proper implementation could address an estimated USD 4.1 Trillion nature funding gap by 2050, benefiting both communities and the environment.

In September 2024, Meta agreed to purchase up to 3.9 million carbon offset credits from BTG Pactual's forestry segment by 2038. This deal, worth approximately USD 16 Million, supports Meta's net-zero emissions target for 2030. The credits originate from BTG Pactual's reforestation efforts, which have planted over 7 million seedlings in Latin America.

In June 2024, BTG Pactual Timberland Investment Group (TIG) committed to supplying Microsoft with up to 8 Million nature-based carbon reduction credits by 2043, the largest carbon dioxide elimination credit transaction to date. These credits arise from TIG’s USD 1 Billion forestry and restoration programs in Latin America, aimed at climate mitigation, biodiversity enhancement, and local community benefits.

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.

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.