South America Carbon Neutral Market: Industry Analysis and Forecast (2023-2029)
South America Carbon Neutral Market size was valued at US$ 2.3 Bn. in 2022 and the total revenue is expected to grow at a CAGR of 1.2% through 2023 to 2029, reaching nearly US$ 2.42 Bn.
Format : PDF | Report ID : SMR_215
South America Carbon Neutral Market Overview:
Carbon neutral signifies that any CO2 generated into the environment as a result of a company's operations is offset by the removal of an equal amount. Climate positive activity is defined as activity that goes beyond net-zero carbon emissions to provide an environmental benefit by removing more carbon dioxide from the atmosphere.
Though market forecasting through 2029 is based on real output, demand and supply of 2022, 2022 numbers are also estimated on real numbers published by key players as well all-important players across the world. Market forecasting till 2029 is done based on past data from 2016 to 2019 with the impact of global lock down on the market in 2022 and 2023.
South America Carbon Neutral Market Dynamics:
South America had a challenging year in 2020. Massive protests, political upheavals, economic troubles, and devastating storms afflicted many countries in the region, with the COVID-19 outbreak on top of it all. Despite this, several leaders in the region, particularly in Chile, Colombia, and Costa Rica, have continued to make much-needed progress in combating climate change.
Unfortunately, the region's two largest economies, Brazil and Mexico, have reneged on earlier agreements and aspirations, which might have disastrous local and global consequences. It will be critical for the incoming Biden-Harris administration to prioritize climate change in its interaction with regional countries, both to assist leaders who are making progress on climate and to push laggards to alter course.
Costa Rica, a continuous climate pioneer in Latin America, announced in 2019 that it would be carbon neutral by 2050. The country announced a Decarbonization Plan, which outlines how the government wants to achieve net-zero emissions by electrifying public transportation, increasing energy efficiency, and improving farming methods. COVID-19, like most countries, has paused its progress. Costa Rica, on the other hand, has already demonstrated that it can lead on climate issues, thus they will almost probably return to being "green." Other countries should take notice as well; according to a recent IDB analysis, implementing the Decarbonization Plan will generate $41 billion in net benefits between 2020 and 2050. These are the key drivers that are expected to drives the growth of the South America Carbon Neutral Market during the forecast period 2023-2029.
South America Carbon Neutral Market Segment Analysis:
The South America Carbon Neutral Market is segmented by Carbon Neutral Fuel, Vertical, and Component.
Based on the Carbon Neutral Fuel, the market is segmented into Biodiesel, Bio-ethanol, Bio-butanol, and others. Biodiesel segment is expected to grow rapidly at a CAGR of xx% during the forecast period 2023-2029. This is due to the increased demand for biodiesel in the South American region, which is carbon neutral. South America's Bioethanol and biodiesel production has increased in recent decades. Brazil, Argentina, Colombia, Paraguay, and Costa Rica produce the most biofuels in the region at the moment. Brazil's ethanol business is now one of the most advanced in the world when it comes to biofuels production.
Brazil is the world's second largest producer of ethanol, according to the Economic Commission for Latin America and the Caribbean (ECLAC). It uses cutting-edge technology, employs cutting-edge equipment, and relies on low-cost, residual sugar cane. Brazil is a big producer of biodiesel as well as ethanol. It is the world's fifth largest producer of biodiesel, according to the ECLAC, and uses soybeans, animal tallow, and cotton seed as feedstock. During the forecast period of 2021-2027, these factors are expected to drive this segment in the South American Carbon Neutral Market.
Based on the Vertical, the market is segmented into Manufacturing, Energy and Utilities, Residential and Commercial Buildings, Transportation and Logistics, IT and Telecom, and others. Energy and Utilities segment is expected to hold the largest market shares of xx% by 2029. Consumers, businesses, and utilities in South America are creating and implementing innovative technology to assist them reaches carbon neutrality. Individuals and organisations can now go "off the grid" using renewable energy sources, while towns and enterprises can also gain. South American countries have four options for generating long-term energy. Furthermore, because they deal with energy efficiency, generation, grids, and carbon sequestration, these technologies have an impact on both customers and future business models for utility firms.
Chile boosted its wind generating capacity by 529MW to 2.15GW in 2020, and built 551GW of solar, totalling 3.2GW in the region's second-highest growth rate. To fulfil its goal of carbon neutrality by 2050, the country plans to install additional 6GW of renewable energy, principally solar and wind. These are the key drivers that are expected to drives the growth of the energy and utilities vertical segment in the South America Carbon Neutral market during the forecast period.
South America Carbon Neutral Market Country wise Insights:
In South America, Chile is expected to dominate the South America Carbon Neutral market during the forecast period 2023-2029. Chile is expected to hold the largest market shares of xx% by 2029. Despite continued political demonstrations and COVID-19, Chile became one of the first countries in the world to announce a revised Nationally Determined Contribution (NDC) under the Paris Agreement in April 2020. It is more ambitious than their 2015 vow, despite the fact that it is still not compatible with 2-degree or 1.5-degree scenarios. Chile's amended NDC shifts from an emission intensity-based target to a 95MTCO2eq absolute reduction target by 2030 (excluding the forestry sector), establishes a carbon budget for the 2020-2030 period, and aims to peak emissions by 2025. It also includes short-lived climatic pollutants like black carbon, which is significant. The NDC also includes additional promises connected to nature-based solutions that go well beyond the original NDC, such as explicitly tying ocean protection to climate action.
Chile's new NDC is complimented by other positive climate efforts, which is encouraging. The country's resolve to attain carbon neutrality by 2050 will be formalized via a proposed Climate Change Law. Chile has also pledged to electrify all public transportation and shut down all coal-fired power stations by 2040. It is even going ahead with plant shutdowns ahead of schedule in some circumstances.
Chile leads Latin America in the electrification of public transportation, with over 800 electric buses on the road, with the first arriving in December 2018. Colombia, Costa Rica, Panama, and Chile have all developed national electric mobility programs since 2019.
Countries all throughout the area have started buying e-buses from China, and governments are providing tax advantages on the import and purchase of electric vehicles. These are the various key factors that are expected to drives the growth of the Chile in the South America Carbon Neutral market during the forecast period.
The objective of the report is to present a comprehensive analysis of the South America Carbon Neutral Market to the stakeholders in the industry. The report provides trends that are most dominant in the South America Carbon Neutral Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the South America Carbon Neutral Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.
The qualitative and quantitative data provided in the South America Carbon Neutral Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the South America Carbon Neutral Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the South America Carbon Neutral Market.
The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Market. The report also analyses if the South America Carbon Neutral Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.
The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the South America Carbon Neutral Market is aided by legal factors.
South America Carbon Neutral Market Scope:
South America Carbon Neutral Market Scope
Market Size in 2022
USD 2.3 Bn.
Market Size in 2029
USD 2.42 Bn.
By Carbon Neutral Fuel
Rest of South America
South America Carbon Neutral Market Key Players
- The Carbonneutral Company (US)
- Green Mountain Energy (US)
- Dakota Software (US)
- ProcessMAP (US)
- IBM (US)
- Salesforce (US)
- Native Energy (US)
- WGL Energy(US)
- 3 Degrees(US)
- Sustainable Travel International(US)
- ClearSky Climate Solutions (US)
- Sterling Planet (US)
- Cenovus Energy (Canada)
- GreenPrint (US)
- Carbon Solutions Group (US)
Frequently Asked Questions
The segments covered in South America Carbon Neutral Market report are based on Carbon Neutral Fuel, Vertical, and Component.
Chile is expected to hold the highest share in the South America Carbon Neutral Market.
Energy and Utilities vertical segment hold the largest market share in the South America Carbon Neutral Market by 2029.
The market size of the South America Carbon Neutral market is expected to reach US $2.42 Bn. by 2029..
The market size of the South America Carbon Neutral Market was worth US $2.3 Bn. in 2022.
Chapter 1 Scope of the Report
Chapter 2 Research Methodology
2.1. Research Process
2.2. South America Carbon Neutral Market: Target Audience
2.3. South America Carbon Neutral Market: Primary Research (As per Client Requirement)
2.4. South America Carbon Neutral Market: Secondary Research
Chapter 3 Executive Summary
Chapter 4 Competitive Landscape
4.1. Market Share Analysis, By Region, 2022-2029(In %)
4.1.1. South America Market Share Analysis, By Value, 2022-2029 (In %)
4.2. Market Dynamics
4.2.6.PORTERS Five Force Analysis
4.2.7.Value Chain Analysis
4.3. South America Carbon Neutral Market Segmentation Analysis, 2022-2029 (Value US$ MN)
4.3.1. South America Market Share Analysis, By Carbon Neutral Fuel, 2022-2029 (Value US$ MN)
4.3.2. South America Market Share Analysis, By Vertical, 2022-2029 (Value US$ MN)
126.96.36.199. Energy and Utilities
188.8.131.52. Residential and Commercial Buildings
184.108.40.206. Transportation and Logistics
220.127.116.11. IT and Telecom
4.3.3. South America Market Share Analysis, By Component, 2022-2029 (Value US$ MN)
4.3.4. South America Market Share Analysis, By Country, 2022-2029 (Value US$ MN)
18.104.22.168. Rest of South America
Chapter 5 Stellar Competition Matrix
5.1. South America Stellar Competition Matrix
5.2. Key Players Benchmarking
5.2.1. Key Players Benchmarking By Product, Pricing, Market Share, Investments, Expansion Plans, Physical Presence and Presence in the Market.
5.3. Mergers and Acquisitions in Industry
5.3.1. M&A by Region, Value and Strategic Intent
Chapter 6 Company Profiles
6.1. Key Players
6.1.1.The Carbonneutral Company (US)
22.214.171.124. Company Overview
126.96.36.199. Source Portfolio
188.8.131.52. Financial Overview
184.108.40.206. Business Strategy
220.127.116.11. Key Developments
6.1.2.Green Mountain Energy (US)
6.1.3.Dakota Software (US)
6.1.7.Native Energy (US)
6.1.8.WGL Energy (US)
18.104.22.168 Degrees (US)
6.1.10.Sustainable Travel International (US)
6.1.11.ClearSky Climate Solutions (US)
6.1.12.Sterling Planet (US)
6.1.13.Cenovus Energy (Canada)
6.1.15.Carbon Solutions Group (US)
6.2. Key Findings