The average price of voluntary carbon market (VCM) credits decreased by *** percent in 2024 year-on-year, to **** U.S. dollars per metric ton of carbon dioxide equivalent. The market value of the VCM totaled just over *** million U.S. dollars that year.

The booming voluntary carbon market is projected to reach $4.6 billion by 2033, driven by corporate sustainability and growing consumer awareness. Explore market trends, key players (South Pole Group, EcoAct, etc.), and regional growth in this in-depth analysis of carbon credits, including forestry, renewable energy, and waste disposal projects. Invest in a sustainable future.

CORSIA-eligible carbon (CEC) credits were assessed at ***** U.S. dollars per metric ton of carbon dioxide equivalent (USD/teCO₂e) in 2024, compared with **** USD/teCO₂e in 2023. CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) is a global market-based measure designed to offset international aviation CO₂ emissions in order to reduce emissions within the sector. Meanwhile, Platts CRC, which reflects removals-based carbon credit projects, was assessed at ***** USD/teCO₂e in 2024.

Voluntary Carbon Credit Trading Market size was valued at USD 2.97 Billion in 2024 and is projected to reach USD 31.81 Billion by 2031, growing at a CAGR of 34.5% from 2024 to 2031.

The Voluntary Carbon Credit Trading Market is driven by several factors, including the increasing global focus on climate change mitigation, the growing demand for corporate climate action, and the need to offset carbon emissions. The rise of carbon pricing mechanisms and the increasing awareness of the environmental impact of greenhouse gas emissions are fueling the demand for carbon credits. Additionally, the development of robust and transparent carbon credit trading platforms, coupled with advancements in technology, are enabling efficient and secure carbon credit transactions. Furthermore, the increasing participation of corporations, financial institutions, and governments in the carbon market is driving its growth and maturity.

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Carbon Credit Market Size 2025-2029

The carbon credit market size is forecast to increase by USD 1,966.3 billion at a CAGR of 32.1% between 2024 and 2029.

The market is experiencing significant growth due to rising emissions in the Earth's atmosphere, which necessitates the need for businesses and individuals to offset their carbon footprint. Booming investment and partnership deals in this market are driving its expansion, with various organizations recognizing the importance of reducing their carbon emissions and contributing to environmental sustainability. However, the fluctuating prices of carbon credits pose a challenge for market participants, as they can impact the profitability of carbon offsetting projects.
To stay competitive, market players must closely monitor carbon credit prices and adapt their strategies accordingly. In summary, the market is witnessing increasing demand due to growing environmental concerns and regulatory requirements, but its growth is influenced by the volatility of carbon credit prices.

What will the Carbon Credit Market Size during the forecast period?

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The market has gained significant traction in recent years as businesses and individuals seek to offset their carbon emissions and contribute to the global decarbonization effort. This market facilitates the buying and selling of carbon credits, which represent the right to emit a specific amount of greenhouse gases. The voluntary carbon market plays a crucial role in this context, enabling organizations to offset their carbon footprint beyond regulatory requirements. Net-zero greenhouse-gas emissions have become a key business objective, driving demand for carbon credits from various sources. Forestry projects are a significant contributor to the market. These projects involve the protection, restoration, or reforestation of forests, which act as carbon sinks, absorbing and storing carbon dioxide from the atmosphere.
Carbon emission reduction projects, such as renewable energy and energy efficiency initiatives, also contribute to the market. Carbon storage projects, including those focused on geological storage, are another essential component. The market's dynamics are influenced by various factors, including regulatory policies, market prices, and technological advancements. As the world moves towards a low-carbon economy, the demand for carbon credits is expected to continue growing, making it an attractive investment opportunity for businesses and individuals alike.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Power
  Energy
  Transportation
  Industrial
  Others


Type

  Compliance
  Voluntary


Geography

  Europe

    Germany
    UK
    France
    Italy


  Asia

    China


  North America



  Rest of World (ROW)

By End-user Insights

The power segment is estimated to witness significant growth during the forecast period.

Carbon credits represent financial instruments that enable organizations to invest in emission reduction projects, contributing to the global effort to transition from fossil fuels to renewable energy sources. These initiatives, which focus on conservation, biodiversity, and livelihoods, provide a means to reduce greenhouse gas emissions and mitigate the effects of climate change.

Additionally, the energy sector, specifically power generation, can benefit significantly from this shift, as renewable energy sources offer a sustainable and non-depleting alternative to coal and natural gas. To achieve the international goal of limiting global temperature rise to 2°C or 1.5°C above pre-industrial levels, the reduction of greenhouse gas emissions is crucial. Carbon credits facilitate this transition by incentivizing investment in renewable energy projects and reducing the overall carbon footprint.

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The power segment was valued at USD 61.30 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 84% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European Union (EU) held a significant share of The market in 2023, with countries like the UK and Germany being major buyers. To achieve climate neutrality by 2050, the EU established the International Emissions Trading System (ETS) in 2005, which sets the cost of CO2 emissions and uses

Voluntary carbon credit market size is estimated to grow from USD 1.1 billion in 2024 to USD 1.6 billion in 2025 and USD 47.5 billion by 2035, at a CAGR of 40%

The voluntary carbon credit market is booming, projected to reach $7.7 billion by 2033 with a 20.9% CAGR. Learn about key drivers, trends, and top players shaping this rapidly growing market for carbon offsetting and corporate sustainability. Explore regional market shares and investment opportunities in renewable energy, forest conservation, and more.

EU Carbon Permits fell to 82.64 EUR on December 1, 2025, down 0.74% from the previous day. Over the past month, EU Carbon Permits's price has risen 1.77%, and is up 20.06% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. This dataset includes a chart with historical data for EU Carbon Permits.

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.

The Carbon Offsets Market size was valued at USD 938.75 USD Billion in 2023 and is projected to reach USD 2222.23 USD Billion by 2032, exhibiting a CAGR of 13.1 % during the forecast period. Recent developments include: August 2023 – The Doha-based Global Carbon Council announced plans to list its carbon credits on the MENA exchanges platform. This initiative is expected to increase the number of carbon offset investors and boost the number of active carbon emission projects in the Middle East region.. Key drivers for this market are: Strict Government Regulations to Neutralize Carbon Emissions by 2050 Have Boosted the Market. Potential restraints include: Limited Awareness of the Carbon Offsetting and Low Carbon Credit Scores in Multiple Countries May Hamper Market Growth . Notable trends are: Increasing Adoption of Carbon Offsets by Voluntary Projects is the Emerging Trend in the Market.

The global carbon credits market is experiencing a period of unprecedented expansion, driven by intensifying regulatory pressure and a surge in corporate climate commitments. With a projected valuation of over $6.4 trillion by 2033, the market is shifting from a niche mechanism to a central pillar of global decarbonization strategy. Europe, powered by its established Emissions Trading System, currently dominates the landscape, but the fastest growth is occurring in the Asia-Pacific region as nations like China and India develop their own carbon pricing frameworks. This transition is marked by a growing demand for high-quality, verifiable credits, particularly from nature-based solutions and innovative carbon removal technologies. The increasing sophistication of the market, including the use of blockchain for transparency, underscores its critical role in financing the transition to a low-carbon economy, although challenges related to standardization and quality assurance remain.

Key strategic insights from our comprehensive analysis reveal:

Europe's unparalleled dominance, spearheaded by the EU Emissions Trading System (ETS), accounts for approximately 88.7% of the global market value in 2025, making it the central hub for compliance-driven carbon trading and price discovery.
The Asia-Pacific region is emerging as the market's primary growth engine, exhibiting the highest regional CAGR of 46.269%. This rapid expansion is fueled by the implementation of national carbon markets, particularly in China, and a vast potential for renewable energy and forestry-based offset projects.
A significant market-wide flight to quality is underway, with increasing investor and corporate preference for high-integrity carbon credits that offer verifiable, permanent emission reductions and additional co-benefits, such as biodiversity and community development.

Global Market Overview & Dynamics of Carbon Credits Market Analysis The global carbon credits market is on a trajectory of exponential growth, poised to expand from $119.872 Billion in 2021 to an estimated $6460.75 Billion by 2033, reflecting an impressive CAGR of 39.411%. This dynamic growth is a direct consequence of the global imperative to address climate change, translating into robust regulatory frameworks and voluntary corporate action. The market is bifurcated into compliance markets, driven by government mandates like Emissions Trading Systems (ETS), and voluntary markets, where organizations purchase credits to meet their own sustainability goals. While Europe's mature compliance market currently represents the lion's share, rapid development in Asia and North America signals a future with more geographically diverse and interconnected carbon pricing mechanisms. Global Carbon Credits Market Drivers

Strengthening Climate Policies and Regulations: The proliferation of national and regional Emissions Trading Systems (ETS) and carbon taxes, inspired by international frameworks like the Paris Agreement, legally mandates industries to reduce emissions, creating consistent demand for carbon credits.
Surge in Corporate Net-Zero Commitments: A growing wave of corporations are voluntarily setting ambitious decarbonization targets, driving significant demand in the voluntary carbon market (VCM) as they seek high-quality offsets to neutralize unavoidable emissions.
Investor and Stakeholder Pressure: Increasing pressure from investors, consumers, and civil society is compelling companies to demonstrate credible climate action, making investment in carbon credits a key component of Environmental, Social, and Governance (ESG) strategies.

Global Carbon Credits Market Trends

Integration of Technology for Transparency: The adoption of blockchain and other digital technologies is enhancing the monitoring, reporting, and verification (MRV) of carbon projects, improving transparency and helping to prevent issues like double-counting.
Growing Demand for Carbon Removal Credits: There is a distinct shift in preference from emission reduction/avoidance credits towards carbon removal credits (e.g., direct air capture, biochar, reforestation), which are seen as essential for achieving net-zero goals.
Focus on Co-Benefits and Project Quality: Buyers are increasingly prioritizing carbon credits from projects that deliver additional social and environmental co-benefits, such as biodiversity protection, improved local livelihoods, and clean water access, oft...

Discover the booming carbon credit trading market! Learn about its $150 billion 2025 valuation, 15-20% CAGR, key players, and future trends. Explore market segmentation, regional analysis, and the challenges impacting this rapidly evolving sector.

Discover the booming carbon credit market! Explore its size, growth projections (CAGR), key drivers, trends, and challenges. Learn about top companies and regional market shares in this comprehensive analysis of the carbon offsetting industry's future from 2025 to 2033.

The voluntary carbon credit trading market is experiencing robust growth, projected to reach a market size of $2191 million in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 20.9% from 2019 to 2033. This expansion is fueled by increasing corporate commitments to net-zero targets, growing awareness of climate change, and a rising demand for credible carbon offsetting solutions. Key drivers include stringent government regulations promoting sustainability, increasing investor interest in Environmental, Social, and Governance (ESG) investing, and the development of robust and transparent carbon credit standards. The market's diverse range of players, including established consultancies like South Pole Group and EcoAct, alongside smaller specialized firms and technology providers, indicates a maturing and increasingly competitive landscape. The increasing complexity of carbon offsetting projects and the need for verification and certification are also driving demand for specialized services within the market. Looking ahead, the market will continue its rapid expansion, driven by factors such as the increasing availability of high-quality carbon offset projects, technological advancements improving transparency and traceability in the carbon market, and the growing participation of smaller businesses and individuals in carbon offsetting programs. However, challenges remain, including ensuring the quality and additionality of carbon credits, addressing concerns regarding double-counting and greenwashing, and creating a more standardized and globally integrated carbon market. Effective regulatory frameworks and the development of more robust methodologies for measuring and verifying carbon reductions will be crucial for maintaining market integrity and accelerating sustainable growth. The market segmentation will likely evolve, with increased focus on emerging markets and specific project types (e.g., reforestation, renewable energy).

Annual Voluntary Carbon Market Transaction Price (USD), by Buyer Type, by Credit Vintage Status, 2021 until 2024

The Voluntary Carbon Credit Market is expected to exceed USD 14,560.17 million by 2032, with a forecasted CAGR of 25.3% during the period.

The carbon offset/carbon credit market size is projected to grow from USD 681 billion in 2025 to USD 6,231 billion by 2035, representing a CAGR of 24.7%, during the forecast period till 2035

Voluntary carbon offset prices could reach as high as *** U.S. dollars per ton of carbon dioxide (USD/tCO₂) by 2050 if integrity issues within the market are resolved. However, if the market continues to operate without rigorous standards, and integrity issues remain a concern for companies, then carbon offset credits would trade at just ** USD/tCO₂ in 2050. Meanwhile, prices would soar to *** USD/tCO₂ by 2030 if the market is restricted to only carbon removals.

Discover the booming carbon credit trading market! Learn about its $150 billion valuation, 15% CAGR, key drivers, and challenges. Explore regional market shares and leading companies shaping this crucial climate solution. Invest in a sustainable future.

The voluntary carbon credit market is booming, projected to reach $9.95 billion by 2033 with a 20.9% CAGR. Learn about market drivers, trends, restraints, and key players shaping this rapidly growing sector focused on corporate sustainability and net-zero goals. Explore regional market share and investment opportunities.