Market

Market Size and Potential for Sustainers: A New Carbon Credit Market for Individuals and Small Businesses

Sustainers aims to create a new segment within the carbon credit market, focusing on individuals and small businesses that are not traditionally involved in large-scale carbon offsetting schemes. This innovative approach addresses a gap in the current market by incentivizing everyday sustainable actions through blockchain and NFT technology. This detailed analysis explores the market size and potential, including the growth opportunities for Sustainers and its impact on both emerging and developed markets.

Existing Carbon Credit Market Overview

Traditional Market Dynamics: The current carbon credit market primarily targets large industries and corporations involved in compliance and voluntary carbon offsetting. In 2023, the global carbon credit market was valued at approximately $26.78 billion, with projections to reach $79.28 billion by 2028, growing at a CAGR of 24.4%​ ​​ (McKinsey)​​ (BusinessGreen)​.

Challenges in the Existing Market:

• High Transaction Costs: The process of registering, verifying, and trading carbon credits is costly, often excluding smaller projects and individual initiatives.​

• Market Complexity: The market's complexity and lack of standardization make it difficult for new participants to enter.​

• Limited Public Awareness: The general public’s understanding of carbon credits and their impact is limited, which hampers broader market engagement.

Sustainers’ Unique Market Opportunity

Creating a New Segment: Sustainers introduces a unique market segment by targeting individuals and small businesses who can earn and trade carbon credits for everyday sustainable actions, such as using electric vehicles, riding e-scooters, cycling, and installing renewable energy systems like solar panels. This approach democratizes carbon credits, making them accessible and relevant to a broader audience.

Potential Market Size:

• Voluntary Carbon Market: The voluntary carbon market (VCM) is poised for significant growth, with an anticipated increase in demand for high-integrity carbon credits. The VCM could reach a value of up to $50 billion by 2030 (BusinessGreen).

• Individual and Small Business Engagement: As awareness of climate change increases, there is a substantial opportunity to engage individuals and small businesses. Currently, individuals and small businesses are the fastest-growing segment in the carbon credit market, driven by personal environmental responsibility and the desire for sustainable living (GlobeNewswire).

Impact on Developed Markets: USA and EU

USA Market Potential:

• Corporate Sustainability: The United States has seen significant corporate commitments to sustainability, with over 2,000 companies signing the We Are Still In declaration to uphold the Paris Agreement. This creates a substantial market for carbon credits among corporations looking to offset their emissions.

• Regulatory Environment: The Biden administration's ambitious climate agenda, including a goal to achieve net-zero emissions by 2050, increases demand for innovative carbon offset solutions like Sustainers. The U.S. carbon market is expected to grow significantly, reaching an estimated $15 billion by 2030.

• Consumer Awareness: American consumers are increasingly conscious of their carbon footprints, with 68% willing to pay more for products from sustainable companies. This trend supports the adoption of Sustainers’ platform among eco-conscious individuals and small businesses.

EU Market Potential:

• EU Green Deal: The European Union's Green Deal aims to make Europe the first climate-neutral continent by 2050. This involves strict regulations and a significant expansion of the carbon market, which is projected to be worth $30 billion by 2030.

• Corporate Commitments: Over 1,000 EU-based companies have committed to Science-Based Targets, creating a strong demand for carbon credits to meet their goals.

• Public Support: European consumers are highly supportive of green initiatives, with 75% willing to purchase sustainable products even if they cost more. This provides a favorable environment for Sustainers to attract a wide user base among individuals and businesses committed to sustainability.

Impact on Emerging Markets

Relevance for Developing Regions:

• Asia, Indonesia, Africa: In regions like Asia, Indonesia, and Africa, individual awareness of climate change and personal efforts towards sustainability are currently minimal. These areas present significant opportunities for Sustainers to foster climate consciousness and action at the grassroots level.

• Barriers to Sustainable Practices: High dependency on fossil fuels and lack of infrastructure for electric vehicles are common challenges in these regions. Sustainers can help overcome these barriers by providing incentives for switching to renewable energy and sustainable transportation options.

Market Engagement Strategy:

• Education and Awareness Campaigns: Implement campaigns to educate individuals and small businesses about the benefits of carbon credits and how they can participate in sustainability efforts through Sustainers.

• Local Partnerships: Collaborate with local governments, NGOs, and community organizations to promote the adoption of sustainable practices and technologies.

• Incentives for Early Adoption: Offer incentives such as subsidies for electric vehicles and solar panels to encourage the transition to sustainable practices.

Market Size in Emerging Regions:

• Asia: The Asian market for voluntary carbon credits is expected to grow significantly, with a projected value of $20 billion by 2030.

• Africa: The potential for carbon credits in Africa could reach $5 billion by 2030, driven by increasing renewable energy projects and sustainable practices.

• Indonesia: With its rich biodiversity and increasing environmental awareness, the market for carbon credits in Indonesia is expected to grow to $2 billion by 2030.

Total Estimated Users

Estimated Market Size:

• EV Owners: 14.5 million

• Wearable Tech Users: 55 million

• Cyclists: 40 million

• E-Scooter Users: 9.75 million

• Renewable Energy Producers: 2 million

• Emerging Markets Users: 50 million (estimate based on targeted engagement and growth potential in regions like Asia, Indonesia, and Africa)

• Total Potential Users: Approximately 171.25 million users globally.

Potential Buyers of Carbon NFTs

Corporations Committed to Sustainability:

• Global Trends: Many corporations are increasingly integrating sustainability into their core business strategies. According to a report by McKinsey, over 90% of companies in the S&P 500 publish sustainability reports.

• Potential Buyers: Technology firms, consumer goods companies, and other corporations committed to reducing their carbon footprints could be significant buyers of carbon NFTs. This includes manufacturers of electric vehicles, solar panels, batteries, and IoT gadgets.

Institutional Investors and Funds:

• Market Trends: Institutional investors are increasingly allocating capital to sustainable assets, with the green bond market reaching $1 trillion in 2021.

• Potential Buyers: Green investment funds, pension funds, and insurance companies could invest in carbon NFTs to diversify their portfolios and meet sustainability mandates.

Governmental and Quasi-Governmental Organizations:

• Regulatory Environment: Governments are adopting policies that require or encourage carbon offsetting, creating demand for carbon NFTs.

• Potential Buyers: National governments, local governments, and municipalities with climate targets could use carbon NFTs to achieve their goals.

Small and Medium Enterprises (SMEs):

• Market Trends: SMEs are increasingly aware of their carbon footprints and are looking for affordable ways to offset emissions.

• Potential Buyers: Eco-conscious businesses and start-ups in the cleantech sector could purchase carbon NFTs to reinforce their sustainability commitments.

Individual Consumers:

• Consumer Trends: There is a growing trend of individuals seeking to reduce their carbon footprints and support sustainable initiatives.

• Potential Buyers: Eco-conscious consumers and cryptocurrency enthusiasts could buy carbon NFTs to offset personal emissions and make a positive environmental impact.

Conclusion

Sustainers has the potential to revolutionize the carbon credit market by creating a new segment that includes individuals and small businesses. By leveraging blockchain technology and focusing on accessible, verifiable sustainable actions, Sustainers can tap into a growing demand for environmental responsibility and drive significant market growth. The unique approach and scalable model position Sustainers for long-term success in a rapidly evolving landscape, with significant potential to impact both developed and emerging markets