Overview
The 2025 report by Forest Trends’ Ecosystem Marketplace (EM) reveals a transitional phase in the Voluntary Carbon Market (VCM), emphasizing a shift toward higher quality, integrity, and transparency amid market contraction.
Market Performance (2024)
- Transaction Volume: Dropped 25% from 112.4 MtCO₂e in 2023 to 84.4 MtCO₂e in 2024.
- Market Value: Fell 29% to $535 million—the lowest since 2018 but double 2020 values.
- Average Price: Decreased by 6% to $6.34/tCO₂e.
- Credit Retirements: Stayed stable at ~182 million tons, showing sustained end-user demand.
Key Trends
- Shift Toward High-Integrity Credits:
- Removal credits (e.g., Afforestation, Agroforestry) are priced 381% higher than reduction credits.
- High demand for CCP-approved (Core Carbon Principles) credits.
- Category Insights:
- REDD+: Declining sharply (volume down 52%).
- Improved Forest Management (IFM): Volume tripled; price ~$15/tCO₂e.
- Agriculture: Price rose 18%, but volume fell 87%.
- Waste Disposal: Volume tripled due to CCP-approved landfill gas projects.
- Renewable Energy: Continued decline in both volume and price.
- Buyer Preferences:
- Strong demand for recent vintages (last 5 years) with a 217% price premium.
- Preference for credits from high-quality standards (e.g., ACR, CAR).
Regional Highlights
- North America: Prices up 59%, driven by IFM and landfill gas credits.
- Asia: Volume and prices dropped significantly due to low-quality Renewable Energy credits.
- Europe: Smallest region but saw a 33% rise in volume and highest average prices.
Outlook & Insights
- VCM is in transition from older methodologies to high-integrity, removals-focused systems.
- Market actors are rebuilding trust and quality post-2021/2022 boom and subsequent scrutiny.
- Despite contraction, the market shows resilience and potential for growth in high-value segments.
Ecosystem Marketplace State of the Voluntary Carbon Market 2025
