Verra issued 36 percent of total carbon credits in 2024. While this was a larger share than other credit registries, Verra's share of issuances has decreased substantially since 2021, when it accounted for 78 percent of issuances. In comparion, Gold Standard saw its share of global credit issuances increase from ** percent to ** percent between 2021 and 2024. Verra and Gold Standard are the two largest voluntary offset project registries worldwide, and together have issued almost *** billion carbon credits.

As of April 30, 2025, almost ** percent of the *** billion voluntary carbon offsets that had been issued by major registries worldwide went toward forestry and land use projects. The majority of credits issued from within this category involve protecting tropical forests from deforestation and degradation in developing countries, known as REDD+ (Reducing Emissions from Deforestation and Forest Degradation). Renewable energy projects, such as wind and hydropower, accounted for the second-largest share of VCM credit issuances.

Reducing Emissions from Deforestation and forest Degradation (REDD+) voluntary carbon credit prices fell by ** percent year-over-year in 2024, to *****U.S. dollars per metric ton of carbon dioxide equivalent. Forestry and land use credits are the most common on the voluntary carbon market, with REDD+ accounting for the majority of carbon credit issuances within this category.

Carbon Offset/Carbon Credit Trading Service Market Outlook

As per our latest research, the global Carbon Offset/Carbon Credit Trading Service market size reached USD 978.6 million in 2024, reflecting robust momentum driven by international climate commitments and rising corporate sustainability initiatives. The market is poised for significant expansion, projected to achieve USD 3,458.2 million by 2033, exhibiting a strong CAGR of 14.8% over the forecast period. This growth is primarily attributed to tightening regulatory frameworks, increased demand for decarbonization, and the proliferation of innovative trading platforms facilitating transparent and efficient carbon credit transactions.

The primary growth driver for the Carbon Offset/Carbon Credit Trading Service market is the intensification of global climate policies and the enforcement of carbon pricing mechanisms. Governments worldwide are adopting stricter emissions reduction targets in line with the Paris Agreement, compelling corporations and industries to seek viable solutions for offsetting their residual emissions. This regulatory push is further amplified by the introduction of mandatory carbon trading schemes in key economies, which is accelerating market participation across both the compliance and voluntary carbon markets. Additionally, the expansion of carbon offset projects—particularly in forestry, renewable energy, and waste management—has provided a diversified portfolio of credits, enhancing the market’s attractiveness for both buyers and sellers.

Another significant growth catalyst is the surge in corporate net-zero commitments and the integration of Environmental, Social, and Governance (ESG) criteria into investment decisions. As investors and consumers increasingly scrutinize companies’ environmental footprints, organizations are leveraging carbon credits to demonstrate climate responsibility and maintain competitive advantage. This trend is particularly evident among multinational corporations in sectors such as energy, manufacturing, and technology, where carbon offsetting is being embedded into broader sustainability strategies. The rise of blockchain-based trading platforms has further democratized access to carbon markets, offering enhanced traceability, reduced transaction costs, and improved market liquidity, which collectively support market expansion.

Technological advancements and innovative trading mechanisms are also shaping the trajectory of the Carbon Offset/Carbon Credit Trading Service market. The proliferation of digital platforms, including blockchain-enabled exchanges, has streamlined the process of carbon credit verification, issuance, and trading. These platforms are enhancing transparency, minimizing fraud, and fostering greater trust among market participants. Moreover, the development of standardized methodologies for carbon accounting and reporting is facilitating cross-border trading and attracting institutional investors. As the market matures, the integration of artificial intelligence and big data analytics is expected to further optimize project selection, pricing, and risk management, reinforcing the market’s long-term growth prospects.

From a regional perspective, Europe remains the dominant market, underpinned by the European Union Emissions Trading System (EU ETS) and ambitious climate policies. North America is rapidly emerging as a significant market, driven by state-level initiatives in the United States and Canada, and increasing corporate engagement. The Asia Pacific region is witnessing accelerated growth, particularly in China and Japan, where national carbon markets are gaining traction. Latin America and the Middle East & Africa, while smaller in scale, present untapped potential due to abundant natural resources and growing interest in sustainable development. The interplay of regulatory support, technological innovation, and corporate demand across these regions will continue to shape the global market landscape.

Service Type Analysis

Carbon Credit Market Outlook

As per our latest research, the global carbon credit market size reached USD 978.6 billion in 2024, reflecting robust growth driven by tightening environmental regulations and a surge in corporate net-zero commitments. The market is expected to expand at a compelling CAGR of 18.7% from 2025 to 2033, reaching an estimated USD 5,246.1 billion by 2033. This remarkable growth trajectory is fueled by increasing demand for carbon offsetting solutions, expansion of both compliance and voluntary carbon markets, and growing investments in sustainable development projects worldwide. The convergence of regulatory mandates and voluntary climate action is fundamentally reshaping the carbon credit landscape, making it a pivotal component in the global transition to a low-carbon economy.

The primary growth factor propelling the carbon credit market is the escalating stringency of environmental regulations across major economies. Governments and regulatory bodies in regions such as the European Union, North America, and Asia Pacific are implementing ambitious emissions reduction targets, often supported by cap-and-trade systems and carbon pricing mechanisms. These policies create a robust compliance-driven demand for carbon credits, compelling industries to invest in emissions offset projects or purchase credits to meet regulatory obligations. Additionally, the integration of carbon pricing into national strategies, such as the EU Emissions Trading System (ETS) and China’s national carbon market, is significantly expanding the addressable market for carbon credits, further accelerating market growth.

Another significant driver is the proliferation of voluntary carbon markets, underpinned by a surge in corporate climate pledges and the growing influence of Environmental, Social, and Governance (ESG) investing. Corporations, particularly in sectors with hard-to-abate emissions, are increasingly leveraging voluntary carbon credits to achieve net-zero or carbon-neutral goals. This trend is further amplified by consumer and investor demand for sustainable business practices, compelling companies to offset residual emissions through verified carbon projects. The development of innovative project types, such as nature-based solutions and technology-driven carbon removal, is expanding the scope and diversity of available credits, attracting a broader spectrum of participants and investors into the market.

Technological advancements and digitization are also playing a crucial role in shaping the future of the carbon credit market. Blockchain technology, digital monitoring, and verification platforms are enhancing transparency, traceability, and trust in carbon credit transactions. These innovations are streamlining the issuance, trading, and retirement of credits, reducing transaction costs, and mitigating risks associated with double counting or fraud. As a result, both compliance and voluntary markets are witnessing increased participation from institutional investors, financial intermediaries, and new market entrants, further driving market liquidity and scalability.

From a regional perspective, Europe continues to hold the largest share of the global carbon credit market, accounting for over 40% of the total value in 2024, owing to its mature regulatory framework and ambitious climate policies. North America follows closely, with significant growth anticipated due to the expansion of state-level carbon trading programs and corporate climate action. Asia Pacific is emerging as the fastest-growing region, propelled by the launch of China’s national carbon market and increasing participation from countries such as Japan, South Korea, and Australia. Latin America and the Middle East & Africa are also witnessing rising activity, primarily in nature-based projects and renewable energy, as governments and private sector entities seek to capitalize on emerging carbon finance opportunities.

Type Analysis

The carbon credit market is bifurcated into two primary t

Hedgerow Carbon Credit Market Outlook

According to our latest research, the global hedgerow carbon credit market size reached USD 587 million in 2024. The market is expected to grow at a robust CAGR of 18.2% throughout the forecast period, reaching approximately USD 2,876 million by 2033. This remarkable growth is primarily driven by the increasing recognition of hedgerows as crucial carbon sinks, coupled with tightening global carbon regulations and a surge in demand for nature-based solutions to climate change. As companies and governments intensify their efforts to achieve net-zero emissions, hedgerow carbon credits are rapidly gaining traction as a viable and impactful means to offset carbon footprints and support biodiversity.

One of the primary growth factors fueling the hedgerow carbon credit market is the rising awareness of the multifaceted environmental benefits provided by hedgerows. Beyond their carbon sequestration capabilities, hedgerows play a vital role in enhancing soil health, preventing erosion, supporting wildlife habitats, and improving agricultural productivity. This holistic value proposition has attracted the attention of policymakers, landowners, and sustainability-focused corporations. As environmental, social, and governance (ESG) criteria become central to corporate strategies, organizations are increasingly investing in hedgerow projects to not only offset emissions but also demonstrate commitment to biodiversity and rural community development. The alignment of hedgerow projects with several United Nations Sustainable Development Goals (SDGs) further amplifies their appeal in the voluntary carbon market.

Another significant growth driver is the advancement of carbon credit verification standards and digital monitoring technologies. The emergence of sophisticated remote sensing, satellite imagery, and blockchain-based platforms has greatly improved the accuracy, transparency, and integrity of carbon credit issuance and trading. These technological innovations have reduced the risk of double counting and greenwashing, thereby boosting investor confidence and facilitating greater market participation. Additionally, government incentives, regulatory frameworks, and public-private partnerships aimed at scaling up nature-based solutions are creating a favorable policy environment for hedgerow carbon credit projects. These initiatives are particularly pronounced in regions with ambitious climate targets, such as Europe and North America, where hedgerow restoration is being integrated into national carbon accounting and rural development programs.

The regional outlook for the hedgerow carbon credit market is characterized by strong growth in Europe and North America, which together accounted for over 65% of global market revenue in 2024. Europe, driven by the United Kingdom, France, and Germany, remains at the forefront due to robust regulatory support, well-established carbon markets, and widespread adoption of agroecological practices. North America is witnessing rapid expansion, particularly in the United States and Canada, where voluntary carbon markets and conservation programs are gaining momentum. Meanwhile, Asia Pacific and Latin America are emerging as high-potential markets, supported by large-scale afforestation and agroforestry initiatives, though they currently lag in terms of credit issuance and verification infrastructure. The Middle East & Africa region is gradually entering the market, primarily through pilot projects and international collaborations.

Project Type Analysis

The project type segment of the hedgerow carbon credit market is comprised of afforestation, reforestation, agroforestry, and other innovative land management practices. Afforestation projects, which involve the establishment of new hedgerows on previously non-forested land, are gaining popularity due to their immediate impact on carbon sequestration and ecosystem restoration. These projects are particularly attractive in regions where agricultural intensification has led to significant lan

Mangrove Carbon Offset Market Outlook

According to our latest research, the global mangrove carbon offset market size reached USD 212.5 million in 2024, reflecting the surging demand for nature-based solutions in climate mitigation. The market is growing at a robust CAGR of 17.8% and is forecasted to achieve USD 1,035.6 million by 2033. This impressive trajectory is primarily driven by the growing recognition of mangrove ecosystems' unique carbon sequestration capabilities, making them a critical component in achieving net-zero emissions targets for both public and private sectors.

One of the most significant growth drivers for the mangrove carbon offset market is the increasing global awareness of the ecological and climate benefits provided by mangrove forests. Mangroves are renowned for their ability to sequester carbon at rates up to four times higher than terrestrial forests, making them invaluable in the fight against climate change. As international climate agreements and national policies increasingly emphasize nature-based solutions, there is a marked uptick in funding and project development for mangrove restoration, conservation, and afforestation. This trend is further bolstered by the integration of mangrove carbon credits into voluntary and compliance carbon markets, enabling organizations to meet their sustainability commitments while supporting biodiversity and coastal resilience.

Another key factor fueling market expansion is the growing participation of the private sector, particularly multinational corporations seeking to offset their carbon footprints and enhance their environmental, social, and governance (ESG) profiles. Companies in energy, manufacturing, transportation, and other carbon-intensive industries are increasingly investing in mangrove carbon offset projects as part of their broader decarbonization strategies. The emergence of high-integrity carbon credit standards, such as the Verified Carbon Standard (VCS) and Gold Standard, has further reinforced market confidence by ensuring transparency, traceability, and measurable climate impacts. This convergence of regulatory pressure, investor expectations, and reputational benefits is expected to sustain robust demand for mangrove carbon offsets in the coming years.

Technological advancements and innovative financing mechanisms are also catalyzing the growth of the mangrove carbon offset market. Satellite monitoring, remote sensing, and blockchain-based platforms have significantly improved the accuracy of carbon measurement, reporting, and verification (MRV) processes, reducing project risks and transaction costs. Meanwhile, blended finance models, green bonds, and public-private partnerships are unlocking new sources of capital for large-scale mangrove projects. These developments are not only accelerating the pace of mangrove restoration and conservation but also expanding market access for local communities and smallholder stakeholders, thereby enhancing the social and economic co-benefits of carbon offset initiatives.

From a regional perspective, Asia Pacific continues to dominate the mangrove carbon offset market, accounting for the largest share of global project activity and carbon credit issuance. This leadership is underpinned by the region's extensive mangrove coverage, high vulnerability to climate change, and proactive government policies supporting ecosystem-based adaptation. North America and Europe are also emerging as significant markets, driven by corporate climate action and supportive regulatory frameworks, while Latin America and Africa present substantial untapped potential due to their vast mangrove resources and increasing international investment. As the market matures, cross-regional collaboration and knowledge-sharing will be critical in scaling up impact and ensuring the long-term sustainability of mangrove carbon offset projects worldwide.

Project Type Analysis

The project type segment of the mangrove carbon offset market encompasses afforestation & r

Biodiversity Credit Market Outlook

The global biodiversity credit market size in 2024 reached USD 1.42 billion, according to our latest research, with a robust CAGR of 22.7% projected through the forecast period. By 2033, the market is expected to expand significantly to USD 10.25 billion, propelled by increasing regulatory mandates, rising corporate sustainability commitments, and a growing recognition of ecosystem services as critical to climate resilience. This growth is underpinned by the urgent need for scalable solutions to halt biodiversity loss and incentivize conservation efforts, making biodiversity credits a vital tool in the transition towards a sustainable global economy.

One of the primary growth factors driving the biodiversity credit market is the strengthening of global and regional policy frameworks aimed at preserving natural habitats and species diversity. Regulatory bodies and international organizations have started to integrate biodiversity considerations into environmental legislation, requiring businesses and landowners to offset their biodiversity impacts through credible and verifiable credits. This regulatory shift has created a surge in demand for both voluntary and compliance biodiversity credits, fostering innovation in project development and credit verification methodologies. The integration of biodiversity credits into broader environmental, social, and governance (ESG) strategies by corporations further amplifies market growth, as companies seek to demonstrate their commitment to nature-positive practices and align with global sustainability standards.

Corporate engagement in biodiversity conservation is another significant driver for the market. With increasing pressure from investors, consumers, and regulators, corporations across diverse sectors—ranging from agriculture to mining and infrastructure—are adopting biodiversity credits to mitigate their ecological footprint. These credits enable organizations to achieve net positive impacts on biodiversity, enhance their brand reputation, and meet evolving disclosure requirements such as those outlined by the Taskforce on Nature-related Financial Disclosures (TNFD). The voluntary biodiversity credit market, in particular, has seen substantial growth as companies proactively invest in conservation projects, recognizing the long-term value of healthy ecosystems for supply chain resilience and risk management.

Technological advancements and the emergence of digital trading platforms have further catalyzed the expansion of the biodiversity credit market. Innovative tools for remote sensing, geospatial monitoring, and data analytics are improving the accuracy and transparency of credit issuance and tracking. This digital transformation is lowering transaction costs, increasing market accessibility, and enhancing stakeholder confidence in the integrity of biodiversity credits. Furthermore, the proliferation of exchange-based and over-the-counter trading platforms is facilitating greater liquidity and price discovery, attracting a broader range of market participants, including institutional investors and conservation finance specialists.

Regionally, Europe leads the biodiversity credit market, underpinned by stringent environmental regulations, ambitious biodiversity strategies, and a mature ecosystem of public-private partnerships. North America follows closely, driven by progressive state-level policies, active participation from the private sector, and significant investments in habitat restoration. The Asia Pacific region is emerging as a high-growth market, propelled by rapid urbanization, rising awareness of ecosystem services, and increasing government initiatives to integrate biodiversity into national development agendas. Latin America and the Middle East & Africa are also witnessing growing activity, particularly in areas with high biodiversity value and strong community engagement in conservation efforts.

Credit Type Analysis

The credit