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.

This dataset on the Voluntary Carbon Market Size, covering the value of traded carbon credits from pre-2005 to 2024, represent the Transaction Year, Annual Value ($M), Annual Volume (MtCO2e), Cumulative Value ($M), and Cumulative Volume (MtCO2e).

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 global voluntary carbon offsets market size was estimated at **** billion U.S. dollars in 2023. Personal voluntary carbon offsets accounted for approximately ** percent of this total. The market size of personal voluntary carbon offsets is predicted to reach a value of ** billion U.S. dollars in 2031, having registered a CAGR of **** percent during the forecast period of 2024 through 2031.More information on the global voluntary carbon offsets market can be found here.

The global voluntary carbon offset market could potentially reach a value of 1.1 trillion U.S. dollars annually by 2050 if integrity issues within the market are resolved. Under this high-quality scenario, carbon offset prices would rise to 238 U.S. dollars per metric ton of carbon dioxide by 2050, rising rapidly from just 20 U.S. dollars in 2030. If integrity issues are not addressed and carbon offset prices remain low, then the market would peak at a value of just 34 billion U.S. dollars annually in 2050.

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.

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.

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%

Europe accounted for almost half of the global voluntary carbon offsets market size in 2023. The Asia-Pacific region followed, with a share of just over ** percent of the global market size. More information on the global voluntary carbon offsets market can be found here.

According to Cognitive Market Research, the global voluntary carbon offset market size is USD XX million in 2024 and will expand at a compound annual growth rate (CAGR) of 5.20% from 2024 to 2031.

North America held the major market of around 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.4% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD XX million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.
Latin America market of around 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.9% from 2024 to 2031.
The sales of renewable energy are poised to surge due to growing environmental awareness, government incentives, technological advancements, and increasing demand for clean, sustainable power sources to combat climate change effectively.
Sales in the energy industry are expected to rise as industries seek more efficient and sustainable power solutions, coupled with increasing global demand for energy amidst economic growth and technological advancements.

Stringent Regulations and Incentives from Governments to Increase the Sales Globally

Stringent regulations and incentives from governments worldwide are playing a pivotal role in driving the sales of carbon offsets on a global scale. Governments are enacting laws and regulations aimed at reducing carbon emissions to combat climate change effectively. These regulations often include mandatory emission reduction targets for industries, which drive companies to seek carbon offset solutions to meet compliance requirements. Additionally, governments are offering various incentives such as tax breaks, grants, and subsidies to encourage businesses to invest in carbon offset projects. These incentives not only alleviate the financial burden of implementing carbon reduction measures but also stimulate market growth by making carbon offset projects more economically viable. Overall, the combination of regulatory pressure and government incentives creates a conducive environment for the proliferation of the voluntary carbon offset market, fostering sustainable development and environmental stewardship on a global scale.

Rising Environmental Awareness to Propel the Market

Rising environmental awareness is a significant driver propelling the voluntary carbon offset market forward. As concerns about climate change and environmental degradation intensify, individuals, businesses, and communities are increasingly acknowledging the urgent need for action. This heightened awareness prompts a shift in consumer preferences and corporate behaviours towards more sustainable practices. Consumers are actively seeking products and services from companies with strong environmental commitments, pushing businesses to adopt carbon offsetting strategies to mitigate their carbon footprints and enhance their brand reputation. Moreover, increased awareness fosters greater public support for government policies and initiatives aimed at curbing carbon emissions, thereby creating a more favourable regulatory environment for carbon offset projects. Overall, rising environmental consciousness is catalysing demand for voluntary carbon offsets as individuals and organizations strive to make a positive impact on the planet, driving market growth and fostering a transition towards a more sustainable future.

Lack of Transparency to Pose a Barrier

The lack of transparency poses a significant barrier to the voluntary carbon offset market. Concerns about the integrity and credibility of carbon offset projects, including issues such as additionally, verification, and the legitimacy of carbon credits, can erode trust among potential buyers and investors. Without clear and standardized reporting mechanisms and verification processes, stakeholders may hesitate to engage in carbon offset transactions due to uncertainty about the environmental impact and effectiveness of these projects. Moreover, the absence of transparent informat...

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

Global Voluntary Carbon Credit market size is expected to reach $4.13 billion by 2029 at 21.6%, growing demand for clean energy propels growth of market due to increasing investment in renewable energy and emission offsetting

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 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 global volume of voluntary carbon market credit transactions in the forestry and land use category amounted to ** million. Forestry and land use was the VCM category with the highest volume of carbon credit transactions that year. Each carbon credit, or offset, represents the reduction or removal of *** metric ton of CO₂ equivalent.

According to Cognitive Market Research, the global Carbon Credits Market size will be USD 415695.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 32.60% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 166278.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 30.8% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 124708.65 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 95609.97 million in 2024 and will grow at a compound annual growth rate (CAGR) of 34.6% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 20784.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.0% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 8313.91 million in 2024 and will grow at a compound annual growth rate (CAGR) of 32.3% from 2024 to 2031.
The Regulatory Carbon Credits held the highest Carbon Credits Market revenue share in 2024.

Market Dynamics of Carbon Credits Market

Key Drivers for Carbon Credits Market

Rising Corporate Commitment to Sustainability and Carbon Neutrality

Businesses are increasingly committing to sustainability goals, including achieving carbon neutrality and reducing their carbon footprints. Many corporations are adopting voluntary carbon offset programs to meet these goals, driving the demand for carbon credits. This trend is fueled by consumer expectations, corporate social responsibility initiatives, and investor pressure for environmentally sustainable practices. Companies are investing in carbon credits to offset their emissions and enhance their green credentials, which, in turn, stimulates market growth. The alignment of corporate strategies with environmental objectives propels the carbon credits market forward.

Restraint Factor for the Carbon Credits Market

Market Volatility and Uncertainty in Credit Pricing.

Market volatility and uncertainty in carbon credit pricing pose significant challenges for the carbon credits market. Fluctuating prices can result from changes in regulatory policies, market demand, and economic conditions, creating instability for investors and businesses. This unpredictability can deter long-term investment in carbon credits and complicate financial planning for companies looking to offset their emissions. The lack of a standardized global market and variations in credit quality further exacerbate these issues, impacting market confidence and hindering the growth of the carbon credits market.

Impact of Covid-19 on the Carbon Credits Market

The COVID-19 pandemic significantly impacted the carbon credits market. The initial economic slowdown led to reduced industrial activity and lower emissions, temporarily decreasing the demand for carbon credits. Many regulatory schemes faced delays or modifications as governments prioritized economic recovery. However, the pandemic also accelerated interest in sustainability and carbon neutrality, with a growing emphasis on green recovery plans. Increased public and corporate awareness about climate change boosted the demand for voluntary carbon credits. Overall, while the pandemic disrupted market dynamics, it also highlighted the importance of carbon reduction and sustainability in recovery strategies.

Key opportunity of the market-

Increasing Regulatory Initiatives to Reduce Carbon Emissions-

As governments worldwide implement stricter regulations to combat climate change, industries face growing pressure to reduce carbon emissions. Regulatory frameworks such as cap-and-trade systems and carbon taxes require companies to either cut emissions or purchase carbon credits to comply with legal limits. This regulatory push drives demand for carbon credits, creating a robust market for trading and investing in emissions reductions. The tightening of emissions standards and global climate commitments are key factors fueling the growth of the carbon credits market, encouraging businesses to engage in carbon offsetting and sustainability practices. For instance, The European Parliament adopted the European Climate Law to tackle climate ch...

Explore Market Research Intellect's Trading Of Voluntary Carbon Offsets Market Report, valued at USD 2.5 billion in 2024, with a projected market growth to USD 15 billion by 2033, and a CAGR of 25.0% from 2026 to 2033.

Gain in-depth insights into Voluntary Carbon Credit Market Report from Market Research Intellect, valued at USD 2.4 billion in 2024, and projected to grow to USD 10.5 billion by 2033 with a CAGR of 23.4% from 2026 to 2033.

The Voluntary Carbon Credit Market will grow at a CAGR of 25.3% during the forecast period, with an estimated size and share crossing USD 14560.17 million by 2032.

The voluntary carbon offsets market size in North America was valued at an estimated *** million U.S. dollars in 2023. This accounted for approximately ** percent of the global voluntary carbon offsets market size that year. The North American voluntary carbon offsets market is predicted to reach a value of **** billion U.S. dollars by 2031.More information on the global voluntary carbon offsets market can be found here.