PUBLISHER: The Business Research Company | PRODUCT CODE: 1727962
PUBLISHER: The Business Research Company | PRODUCT CODE: 1727962
A voluntary carbon credit is a tradable certificate that represents the reduction, removal, or avoidance of one metric ton of carbon dioxide (CO2) or its equivalent (CO2e) in greenhouse gases (GHGs). These credits are generated by projects that reduce emissions, such as reforestation, renewable energy, carbon capture, and energy efficiency initiatives. Voluntary carbon credits are bought and sold in the voluntary carbon market (VCM) by businesses, organizations, and individuals aiming to offset their carbon footprint beyond regulatory requirements.
The main types of voluntary carbon credits include forestry, renewable energy, waste disposal, and others. Forestry projects capture and store carbon dioxide through activities such as reforestation, afforestation, and forest conservation, which help mitigate climate change by enhancing natural carbon sinks. These credits are classified by project type into removal or sequestration projects and avoidance or reduction projects. They apply to various sectors such as industry, household devices, energy, and agriculture, with end users including government agencies, non-governmental organizations (NGOs), private companies, and individuals.
The voluntary carbon credit market research report is one of a series of new reports from The Business Research Company that provides voluntary carbon credit market statistics, including voluntary carbon credit industry global market size, regional shares, competitors with a voluntary carbon credit market share, detailed voluntary carbon credit market segments, market trends and opportunities, and any further data you may need to thrive in the voluntary carbon credit industry. This voluntary carbon credit market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The voluntary carbon credit market size has grown exponentially in recent years. It will grow from $1.55 billion in 2024 to $1.89 billion in 2025 at a compound annual growth rate (CAGR) of 21.9%. The growth during the historic period can be attributed to corporate social responsibility initiatives, the establishment of early regulatory frameworks, international climate agreements, investor pressure for sustainability, and the implementation of carbon pricing schemes.
The voluntary carbon credit market size is expected to see exponential growth in the next few years. It will grow to $4.13 billion in 2029 at a compound annual growth rate (CAGR) of 21.6%. The growth in the forecast period is expected to be driven by stringent carbon neutrality targets, mandatory climate disclosure regulations, growing consumer demand for green products, increasing corporate net-zero commitments, and the inclusion of carbon credits in investment portfolios. Key trends during this period include the integration of carbon credits into supply chains, greater participation from developing economies, premium pricing for high-quality carbon credits, partnerships with indigenous communities, and the use of automated carbon offset verification tools.
The growing demand for clean energy is expected to drive the expansion of the voluntary carbon credit market moving forward. Clean energy refers to energy sourced from methods that have minimal environmental impact and emit little to no greenhouse gases. This rising demand for clean energy is driven by factors such as environmental protection, public health benefits, energy security, and regulatory and policy incentives. Increased demand for clean energy leads to greater investment in renewable sources, which in turn generate carbon credits by reducing emissions. These credits help businesses offset their carbon footprints, strengthening the carbon market and encouraging the growth of green energy. For example, in March 2024, the American Clean Power Association reported that the clean energy industry installed 33.8 gigawatts (GW) of new utility-scale projects in 2022, a 12.5% increase from the previous record set in 2021. This demonstrates that the rising demand for clean energy is significantly contributing to the growth of the voluntary carbon credit market.
Companies in the voluntary carbon credit market are focusing on advancing digital solutions, such as digital carbon credit sourcing, to streamline access to carbon credits, supporting corporate sustainability and emissions reduction efforts. Digital carbon credit sourcing involves using online platforms and technologies to identify, purchase, and trade carbon credits, making it easier for companies to participate in certified carbon offset projects. For example, in September 2024, ERM International Group Limited, a UK-based sustainability consultancy, launched the ERM Carbon Credit Portal to simplify client access to the voluntary carbon market. This initiative streamlines the process of selecting and purchasing carbon credits, allowing organizations to effectively complement their greenhouse gas emissions reduction strategies. The portal features pre-screened projects, enabling users to assess climate benefits and associated risks, thus improving transparency and trust in the carbon credit procurement process. This launch is part of ERM's broader strategy to assist corporate decarbonization efforts.
In November 2023, MSCI Inc., a US-based provider of decision support tools for the global investment community, acquired Trove Research for an undisclosed amount. The acquisition aims to bolster MSCI's data and analytics capabilities in the voluntary carbon markets, providing clients with comprehensive tools to manage carbon emissions and support sustainability goals across various industries. Trove Research is a UK-based firm specializing in data, analysis, and advisory services focused on corporate climate action and the voluntary carbon market.
Major players in the voluntary carbon credit market are Ambipar Group, Rubicon Carbon, South Pole, EKI Energy Services Ltd., The Carbon Trust, 3Degrees, Climate Impact Partners, Allcot Group, Green Mountain Energy, First Climate, ClimeCo LLC, Aera Group, Forliance, ComBio Energia, BioCarbon Partners, CarbonBetter, Atmosfair, NativeEnergy, NatureOffice GmbH, Carbon Credit Capital LLC, Finite Carbon, GreenTrees LLC, Puro.earth, Tasman Environmental Markets, TerraPass, CarbonClear, BURN
North America was the largest region in the voluntary carbon credit market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in voluntary carbon credit report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the voluntary carbon credit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The voluntary carbon credit market includes revenues earned by entities by providing services such as methane capture initiatives, transportation emission reduction projects, carbon offset certification services, and technology-driven carbon capture and storage solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Voluntary Carbon Credit Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on voluntary carbon credit market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for voluntary carbon credit ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The voluntary carbon credit market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.