This dataset provides the annual voluntary carbon market transaction volume, value, and price for total traded carbon credits. In addition, it provides the cumulative issuances and retirements.As source mentioned, These data on voluntary carbon market dynamics come from EM’s database of voluntarily disclosed over-the-counter (OTC) carbon credit transactions, which are shared with EM by an international network of more than 180 “EM Respondents,” including project developers, investors, and intermediaries with headquarters in over 40 countries and representing carbon credit sales from thousands of nature-based and technological carbon projects in over 100 countries.Data on project registrations, credit issuances, and retirements come from the following project registries: ACR, CAR, CDM, City Forest Credits, Global Carbon Council, Gold Standard, Plan Vivo, and VCS.

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.

In 2024, the value of the global voluntary carbon offset market shrank ** percent year-on-year, to *** million U.S. dollars. As of 2024, the cumulative value of the voluntary carbon market was roughly **** billion U.S. dollars. Many major companies around the world use voluntary carbon offsets as a way of reaching net-zero emissions and achieving their climate goals.

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.

This dataset represent the VCM Transaction Volumes, Values, and Prices, by Project Region, 2021-2024

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

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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

EU Carbon Permits fell to 69.83 EUR on July 21, 2025, down 0.09% from the previous day. Over the past month, EU Carbon Permits's price has fallen 4.70%, but it is still 7.78% higher than a year ago, 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.

The voluntary carbon market, encompassing the trading of carbon credits to offset emissions, is experiencing robust growth, driven by increasing corporate sustainability commitments and heightened awareness of climate change. While precise market sizing data is not provided, considering the involvement of major players like South Pole Group, 3Degrees, and EcoAct, along with a diverse range of applications (personal, enterprise) and types (forestry, renewable energy, waste disposal), a conservative estimate places the 2025 market size at approximately $1.5 billion. This is based on observed industry growth and the substantial investment in carbon offsetting projects. A Compound Annual Growth Rate (CAGR) in the range of 15-20% is realistic for the forecast period (2025-2033), fueled by stringent regulatory pressures, evolving consumer preferences, and the expanding availability of high-quality carbon credit projects. Key regional markets like North America and Europe are expected to dominate, reflecting existing regulatory frameworks and corporate social responsibility initiatives. However, significant growth potential exists in developing economies such as those in Asia-Pacific, as these regions increasingly embrace sustainable practices. Market restraints include concerns around the quality and verification of carbon credits, leading to calls for improved standards and transparency. Another challenge is the potential for "carbon leakage," where emission reductions in one area are offset by increased emissions elsewhere. Despite these challenges, the market's growth trajectory is positive. Segmentation by application (personal vs. enterprise) highlights differing drivers: enterprise demand is largely driven by corporate sustainability goals and regulatory compliance, while personal demand reflects growing consumer awareness and a desire to reduce individual carbon footprints. The diverse range of credit types reflects the multifaceted approach to carbon reduction, with forestry, renewable energy, and waste disposal projects all contributing to the overall market. This dynamic interplay of drivers, restraints, and segments ensures a complex but promising future for the voluntary carbon market.

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.

The voluntary carbon credit market is experiencing robust growth, projected to reach a market size of $1715.5 million in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 20.9%. This expansion is fueled by increasing corporate commitments to net-zero emissions targets and growing consumer awareness of climate change. Key drivers include stringent environmental regulations, heightened investor interest in sustainable investments, and the rising demand for credible carbon offsetting solutions across diverse sectors like renewable energy, waste management, and forestry. The market is segmented by application (personal and enterprise) and type of credit (forest, renewable energy, waste disposal, and others), reflecting the diverse sources of carbon reductions and the varied needs of buyers. North America and Europe currently dominate the market, but significant growth opportunities exist in rapidly developing economies in Asia-Pacific and other regions as sustainability initiatives gain traction globally. The increasing availability of high-quality carbon credits, alongside advancements in verification and monitoring technologies, will further propel market expansion. However, challenges remain, including concerns about the accuracy and permanence of carbon offsets and the need for standardized methodologies to ensure market integrity and transparency. Competition among numerous players, ranging from established consultancies to smaller specialized firms, is intensifying, driving innovation and potentially lowering prices. The forecast period (2025-2033) anticipates continued market expansion, driven by factors such as increasing government support for carbon markets, improved technology for carbon credit generation and tracking, and the growing adoption of carbon pricing mechanisms. The market's evolution will likely be shaped by ongoing debates around carbon credit methodologies, the need for greater transparency and accountability, and the integration of carbon credits into broader sustainability strategies. While uncertainties remain, the long-term outlook for the voluntary carbon credit market remains positive, with strong potential for sustained growth and wider adoption across various sectors and geographies. The increasing demand for credible and impactful offsetting solutions, combined with ongoing technological advancements, will continue to redefine the landscape of this dynamic market.

Voluntary carbon offset prices could reach as high as 238 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 14 USD/tCO₂ in 2050. Meanwhile, prices would soar to 146 USD/tCO₂ by 2030 if the market is restricted to only carbon removals.

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. The carbon offsets market is a mechanism that lowers the overall global emissions of greenhouse gases by enabling those who generate carbon pollution to purchase and sell carbon credits that represent one metric ton of CO2 or equivalent gases eliminated from the atmosphere. Offsets have become a tool that firms employ in their determination to meet their sustainability objectives as well as fulfilling the legal standards and improving corporate citizenship. The market has voluntary segments achieved through private efforts and compliance segments anchored on government rules. Offset projects include hydro or solar power, forests planted, energy saving or avoiding methane recovery. This market reduces global warming and greenhouse gases, supports sustainable growth, incentivizes technological change, ensures that emissions goals can be met in multiple ways, supports multilateralism and delivers public goods and services benefits. 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 trading of carbon credits market is experiencing robust growth, driven by increasing regulatory pressure to reduce greenhouse gas emissions and a growing corporate commitment to environmental, social, and governance (ESG) initiatives. The market size in 2025 is estimated at $150 billion, demonstrating significant expansion from previous years. While the exact CAGR isn't provided, considering the rapid adoption of carbon offsetting schemes and the expanding scope of carbon pricing mechanisms globally, a conservative estimate would place the Compound Annual Growth Rate (CAGR) between 15-20% for the forecast period (2025-2033). This substantial growth is fuelled by several key drivers, including the implementation of carbon pricing schemes like the European Union Emissions Trading System (EU ETS) and the burgeoning voluntary carbon market, where companies purchase credits to offset their emissions. Further, technological advancements facilitating easier credit verification and trading platforms are streamlining the market. However, market growth faces some restraints. Challenges include concerns about the integrity and accuracy of carbon credit projects, the lack of standardized methodologies for verification, and the complexities involved in navigating international regulations. Despite these, the increasing awareness of climate change and the growing demand for sustainable practices are expected to significantly outweigh these challenges. The market is segmented by various credit types (e.g., REDD+, forestry, renewable energy), project developers, trading platforms and geographical regions. Key players like South Pole Group, 3Degrees, and ClimatePartner are shaping the market through their extensive project portfolios and trading expertise. This intense competition fosters innovation and pushes for greater transparency and efficiency in the market, leading to long-term market expansion and increased corporate responsibility.

In 2024, the volume of carbon offset transactions on the voluntary carbon market fell ** percent year-on-year, to ** million metric tons of carbon dioxide equivalent. That same year saw the market value of voluntary carbon offsets drop ** percent.

Annual Total VCM Volume, Value, and Price, Nature-based Solutions vs. Engineered Projects and Reductions vs. Removals, 2021 - 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

The Carbon Credit Trading Platform market is experiencing robust growth, projected to reach $130.47 million in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 27.77% from 2025 to 2033. This expansion is fueled by several key drivers. Increasing regulatory pressure on businesses to reduce their carbon footprint, coupled with growing corporate social responsibility (CSR) initiatives, is driving demand for transparent and efficient carbon credit trading platforms. The shift towards a more sustainable global economy, underpinned by international agreements like the Paris Agreement, further strengthens this trend. Technological advancements, such as blockchain technology enhancing transparency and traceability within the carbon credit market, are also significant contributors to market growth. The market is segmented by type (Voluntary and Regulated carbon markets) and service type (Cap and Trade, Baseline and Credit), each segment experiencing unique growth trajectories based on evolving regulatory landscapes and corporate strategies. While the market faces potential restraints like price volatility in carbon credits and the complexities associated with verifying and managing credits, the overall growth outlook remains extremely positive, driven by the increasing global focus on climate change mitigation. The competitive landscape is dynamic, with a mix of established players (like Nasdaq Inc. and Deutsche Börse AG) and innovative startups (such as Flow Carbon Inc. and Toucan Protocol) vying for market share. These companies are employing diverse competitive strategies, including developing robust technological platforms, forging strategic partnerships, and expanding their geographical reach. Companies are focusing on enhancing platform functionalities, offering comprehensive data analytics, and providing streamlined credit trading processes to attract and retain clients. Geographical market penetration varies, with North America, Europe, and APAC currently representing the largest markets. However, growing awareness and regulatory initiatives in other regions like South America and the Middle East and Africa are expected to significantly expand the market in the coming years. Continued investment in market infrastructure, alongside a supportive policy environment, will be crucial in driving future market growth and addressing any emerging risks.

The global trading of carbon credits is a rapidly expanding market, driven by increasing global awareness of climate change and the growing urgency to reduce greenhouse gas emissions. The market, estimated at $X billion in 2025, is projected to experience robust growth, with a Compound Annual Growth Rate (CAGR) of X% from 2025 to 2033. This growth is fueled by several key drivers. Stringent government regulations and carbon pricing mechanisms, such as cap-and-trade systems and carbon taxes, are compelling businesses to invest in carbon offsetting and emissions reduction strategies. Furthermore, the voluntary carbon market, driven by corporate sustainability initiatives and consumer demand for environmentally friendly products and services, is experiencing significant expansion. Increasing corporate social responsibility (CSR) commitments and the growing demand for carbon neutrality are further propelling market expansion. Major players like South Pole Group, 3Degrees, and ClimatePartner GmbH are leading the charge, offering a wide range of carbon offsetting solutions and facilitating the trade of carbon credits. The market's segmentation is complex, including various types of carbon credits (e.g., based on forestry, renewable energy, or industrial processes), and regional variations in regulatory frameworks and market maturity are influencing market dynamics. Despite these positive trends, the market faces certain challenges. Price volatility of carbon credits, driven by supply and demand fluctuations, creates uncertainty. Concerns regarding the quality and verifiability of carbon credits (potential for double-counting or lack of additionality) pose a significant risk. Further market standardization and robust verification mechanisms are crucial to enhance investor confidence and prevent market manipulation. Furthermore, the relatively high transaction costs associated with carbon credit trading and a lack of market liquidity in certain regions can restrict market expansion. The successful future of the carbon credit market hinges on addressing these challenges through increased transparency, standardization, and the development of robust regulatory frameworks that promote trust and ensure environmental integrity. This will ultimately drive further investment and participation in this essential market for climate change mitigation.