Voluntary Carbon Market in MENA Region Sees 14% Growth in 2024
The demand for the voluntary carbon market in the MENA region has increased to reach 2.5 million tons in 2024, representing a 14% growth compared to the 2.2 million tons recorded last year. According to the regional voluntary carbon market, a new progression is expected in the coming years.
MENA Region: A Key Player in Carbon Emissions
The MENA region is currently home to significant polluters, including oil production and chemical industries. As a result, the region's CO2 emissions account for 7.4% of the global total as of 2023. This presents a potential for achieving a trading volume of 100 million tons, catalyzing hundreds of millions of dollars in climate projects.
Global Market Trends
Globally, as more companies take responsibility for their emissions, the growth potential is preserved. Notably, the global voluntary carbon credit market has experienced a sharp decline, dropping from $2.1 billion in 2021 to $720 million in 2023, according to EcosystemMarket Place statistics. Investing in Southern countries, which spend more than Northern countries in proportion to their respective GDPs, is a promising avenue for accelerating market recovery. The Middle East and North Africa are an excellent address for launching such initiatives, as the region is among the most affected. At least 16% of the regional GDP should be spent annually to enable the transition, compared to the global average of 7.5%.
Market Projections
McKinsey predicts that the global market will reach $50 billion by 2030 and $250 billion by 2050, driven by growing demand from the private sector. This evolution is an opportunity that Tunisia should not miss, offering at least one market for its own exporters.
Note: MENA stands for Middle East and North Africa.
