The global renewable energy certificate market generated US$9.3 billion in 2020 and is predicted to reach US$103.2 billion by 2030, with a compound annual growth rate of 27.2% from 2021 to 2030, according to a recent report published by Allied Market Research.
The global renewable energy certificate market is expanding due to an increase in environmental awareness and the availability of excess electricity from small-scale renewable energy resources.
Allied Market Research predicted that accelerated innovation activities and investments in the development of renewable energy resources will lead to new opportunities in the coming years. However, a lack of standard laws and insufficient knowledge of renewable energy trading is likely to impede market expansion.
The report, titled “Renewable Energy Certificate Market by Energy Type, Capacity, and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2030,” showed that solar energy accounted for the highest share in 2020, accounting for more than half of the global renewable energy certificate market, and is expected to maintain the leading position throughout the forecast period. This is owing to the rapid growth of solar power output around the world, an increase in demand for renewable energy, and the depletion of fossil fuel resources.
However, the gas power market is predicted to grow at the fastest rate of 28.3% from 2021 to 2030, owing to increased power consumption, the presence of biofuels, and an increase in municipal waste management and recycling globally.
Based on end use, the voluntary sector contributed the most in 2020, accounting for about three-fourths of the worldwide renewable energy certificate market, and is expected to continue its dominance before 2030, driven by rising power demand as well as increased public awareness of greenhouse gas emissions during energy production.
On the other hand, the compliance segment is also predicted to grow at the fastest compound annual growth rate of 27.3% from 2021 to 2030 due to the surging demand for government initiatives to offset greenhouse gas emissions.
Based on region, Asia-Pacific, followed by Europe and North America, held the largest market share in 2020, accounting for more than one-third of the global renewable energy certificate market, and is expected to maintain its dominance by 2030.
Furthermore, since developing countries such as India and China are rapidly constructing renewable energy infrastructure, the region is expected to have the highest compound annual growth rate of 29.2% during the forecast period.
