Voluntary Carbon Credit Market Size & Share 2025 - 2034

Voluntary Carbon Credit Market Size

The global voluntary carbon credit market was valued at USD 1.7 billion in 2024 and is estimated to grow at a CAGR of 25% from 2025 to 2034. An active push formed by corporate players to achieve their net zero targets and improve their sustainability ratings has initiated the development of new credit systems focusing on the different constituents of the economy. In January 2025, Microsoft announced the purchase of over 3.5 million carbon credit units in order to offset the carbon production during the AI development, thus propelling the market growth.

The incorporation of voluntary carbon credit market into compliance markets improves the liquidity, credibility, and overall demand of voluntary carbon credits. This attracts institutional investors which improves the stability of prices and encourages corporate involvement. The integration promotes greater uptake, which in turn increases investment into premium quality projects, improves market participation, and facilitates international efforts towards carbon reduction, thereby rapidly increasing the market expansion of the voluntary carbon credit.
 

An array of substantial companies and institutions are now applying carbon credits to their ESG approaches with the hope of earning greater trust from investors and principal owners, which improves the outlook of the business. For instance, in 2023, more than 60 percent of companies in the S&P 500 claimed using carbon credit markets to offset emissions. This number is expected to increase further over the years and support the market figures.
 

Voluntary Carbon Credit Market Trends

• Growing investments across the projects offering environmental and social benefits owing to the rising concerns towards environmental health is driving the growth for carbon trading opportunities. In 2024, renewable energy projects constituted to 31% of the total carbon offsetting, which is further anticipated to grow over the next years owing to the rising investment across the integration of these sources in the energy mix.
   
• Over the years, the world has witnessed a large number of weather events and climate risks, which has compelled the companies to limit their carbon emissions to limit the change in the global temperatures. Since 1850, the global temperature has grown by 0.06 degrees Celsius per decade and the rate temperature change is increasing owing to the rise in manufacturing processes, which drives the companies to offset their carbon and thus aid in carbon credit industry growth.
   
• Growing understanding of global warming and climate change across the consumer base has driven a preference for the brands which offer sustainability initiatives, thus complementing the voluntary carbon credit market growth. These firms are readily investing in carbon credit practices to boost their eco friendly branding, thus gaining a competitive advantage in their respective industry and fueling the carbon credit market growth as well.
   
• Growing adoption of blockchain technology and tokenization of carbon credits has further enhanced the adaptability of voluntary carbon credit practices across the globe. These technologies have significantly reduced the fraud in carbon offsetting as it provides traceability and transparency to the company. Moreover, various platforms including KlimaDAO and Toucan further aid in the market growth by offering decentralized access, realtime verification and seamless trading to the companies.
   
• The governmental organizations try to adjust and harmonize the functioning of the carbon credit market through the adoption of certain policies and the allocation of specific funds. Starting January 2025, the Swiss trading firm Mercuria partnered with Nature Conservancy and Conservation International to allocate USD 15 million towards the preservation of the Amazon rainforest in Brazil. The project sought to promote trading of carbon credits in concomitance with environmental protection activities.
   

Voluntary Carbon Credit Market Analysis

The voluntary carbon credit industry was valued at USD 1.9 billion, USD 1.8 billion and USD 1.7 billion in 2022, 2023 and 2024 respectively. Although the market has witnessed a slight decline in the last few years, it is anticipated to grow over the forecast years owing to the rise in reliable methods of computing carbon offsets and technological advancements across the industry, which aids in easy accessibility and traceability.
 

• Various frameworks are being introduced across the globe which encourage companies to voluntarily offset their carbon production and aid in their sustainability targets. For instance, frameworks including Science-Based Target Initiative (SBTi) and Task Force of Climate related Financial Disclosure (TCFD) are amongst the key frameworks which promote accountability and transparency, thus encouraging the businesses and aiding the voluntary carbon credit market growth.
   
• In addition, numerous approaches are being used to engage organizations and individuals in voluntary emissions offsets outside the government-regulated scope. For example, Indonesia established The IDX Carbon Platform in 2024 to aid in carbon trade by providing an additional 1.78 million credits from renewable energy projects, thus enhancing the market’s capacity.
   

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• Based on end use, the market is segmented in forestry & landuse, agriculture, renewable energy, carbon capture & storage, household & community, chemical process, industrial & commercial, transportation, and waste management. The forestry and landuse segment held a substantial share of over 49% in 2024 and is further anticipated to grow over the next few years.
   
• A substantial rise in afforestation and reforestation projects has boosted the demand for carbon offsetting across the globe. For instance, between 2015 to 2020, approximately 5 million hectares of trees were planted across the globe, as per the statistics by United Nations. As the policies for rebuilding the environmental health strengthen, the efforts toward reforestation will grow, thus stimulating the business growth.
   
• The voluntary carbon credit market from CCS industry is anticipated to grow at a CAGR of over 30.5% through 2034, owing to the carbon mitigation initiatives coupled with the rising investments across the CCS technologies. For instance, in 2024, a total investment of USD 80 million was made by Google and Stripe in order to develop CCS technology for effective carbon storage.
   
• The industry from renewable energy is anticipated to grow over USD 3 billion by 2034, because of the increased use of renewable energy in the energy portfolio of various nations. The European Commission indicates that in 2024, wind powered 15% of total electricity production in Europe, followed by hydroelectric and solar energy. The changing landscape of supply and increasing share of these technologies will lead to an unprecedented increase in demand for carbon offsetting in the next few years.
   

• The U.S. voluntary carbon credit market was reached USD 200 million, USD 300 million and USD 400 million in 2022, 2023 and 2024 respectively. This growth is largely being fueled by rising net-zero commitments and an increase in consumer demand for greener options. Businesses are adopting stringent carbon credit management plans to lower emissions and foster Environmental Social Governance (ESG) activities.
   
• Additionally, investing in carbon credit trading has become easier as the transparency and trust of these transactions has greatly improved due to the adoption of blockchain technology. During March 2024, the Department of Energy of the United States made known its decision to invest USD 450 million in establishing Regional Direct Air Capture Hubs, thus promoting the innovation of carbon removal technologies and voluntary carbon credit markets.
   
• The rising growth of the European market for voluntary carbon credit can be attributed to the stringent environmental regulations as well as the aim to achieve carbon neutrality by the year 2050. The European Union Emissions Trading System (EU ETS) has motivated businesses to employ carbon credits in meeting their net-zero targets.
   
• Germany is leading across the European market with its expenditure on renewable energy, sustainability development, and carbon offsetting projects that are within the climate goals of the country. In December 2023, the German Federal Ministry for Economic Affairs and Climate Action disclosed a cooperation with Climate Asset Management to create high-integrity carbon credit projects valued at USD 515.35 million.
   
• The Asia Pacific voluntary carbon credit market is anticipated to cross over USD 8 billion by 2034. The industry is growing tremendously owing to the improved understanding of climate change, rise in urban migration, and government policies focused on emissions reduction. A few states in the region are starting to incorporate carbon credits into their climate action strategies.
   
• China is a major market player due to its goal of achieving carbon neutrality by 2060, investments in green technologies and the adoption of carbon credits within their trading systems. The Ministry of Ecology and Environment of China set up a national carbon credit trading platform intended to enhance the market’s liquidity and transparency during previous year.
   
• With increasing focus towards sustainability and renewable energy initiatives, the Middle East and Africa region has shown a growing investment in voluntary carbon credits. As part of energy diversification and emission reduction strategies, governments are adopting carbon credit systems.
   
• South Africa is at the forefront across MEA with its renewable energy projects, carbon offset projects, and other international climate goals. In November 2023, the South African Department of Forestry, Fisheries and the Environment aimed to strengthen domestic carbon credit trading by introducing new guidelines on voluntary carbon market participation.
   

Voluntary Carbon Credit Market Share

Top 6 companies for voluntary carbon credit industry include Microsoft, Shell, South Pole, Climate Impact Partners EcoAct, Ecosecurities, and ClimeCo. These companies collectively held a substantial market share of over 40% in 2024 and are further anticipated to gain a bigger share in the coming years.
 

Shell has a notable market share in the global voluntary carbon credit market. The company’s position stems from its focus on carbon offsets in achieving climate goals, especially after there was a decline of investment in clean energy projects. The company also retired 14.9 million carbon credits in the year 2024, which placed it ahead of other major participants such as Microsoft.
 

The company’s focus on carbon credit revolves around creating an economical way of fulfilling environmental responsibilities. This approach is however criticized for being superficial and not doing much to protect the environment. As stated in Shell’s corporate website, in January 2024 Shell Environmental Products partnered with Climate Impact X to promote transparency and trust within voluntary carbon markets by enabling trading through blockchain technology.
 

Apart from Shell, Microsoft has emerged as a major buyer of carbon credits to offset emission production. South Pole and Climate Impact Partners target marketing encompass developing and managing carbon offset projects at an international level.
 

EcoAct provides consulting in sustainability while helping companies achieve carbon neutrality. Ecosecurities specializes in sourcing and financing the mitigation projects in greenhouse gases. ClimeCo deals in environmental commodities and ClimeCo in sustainability. All these companies provide services and initiatives that help in the growing and strengthening of the voluntary carbon market.
 

Voluntary Carbon Credit Market Companies

• Microsoft invests in the civil planting and technological carbon removal industries globally to achieve carbon negativity by 2030. The company buys voluntary carbon credits as a form of carbon offsetting. In January 2024, Mitsubishi partnered with Microsoft to support carbon removal projects in the Asia Pacific region. Additionally, Microsoft announced in 2024 that it would invest in projects that lower emissions during industrial operations.
   
• South Pole issues and trades carbon credits with other stakeholders, while also serving as a sustainability consultant. The organization maintains over 1,000 projects for businesses worldwide, helping them to meet their emissions targets. South Pole projects help companies to reach their climate goals while also contributing to environmental preservation. In April 2024, GenZero and South Pole have opened an office aimed at scaling first-of-its-kind carbon credits in Asia.
   
• Climate Impact Partners is an active player in voluntary carbon markets, sourcing and trading credits from renewable energy production, forestry, and other community initiatives. The company helps its clients achieve net zero and ensures its reputation by working with Gold Standard and Verra certification. In November 2023, Climate Impact Partners formed a partnership with Shell to design carbon offset projects based on nature.
   
• EcoAct, which is a subsidiary of Atos, offers carbon neutrality consulting services to various firms. The company’s consulting services cover emissions reduction, carbon offsetting, and climate risk management by setting science-based targets to help clients comply with global climate frameworks. As of October 2023, EcoAct is now further developing its carbon credit portfolio by adding new forestry projects in South America.
   
• Ecosecurities identifies, implements, and finances projects for emission reductions focusing on forestry, renewable energy, and methane recovery. The company sells and trades verified carbon credits for corporate customers and participates in funding climate change projects around the world. In February 2024, Ecosecurities formed an alliance with African government to implement large scale carbon offset projects in Africa.
   
• ClimeCo specializes in the trade of carbon credits, emission reduction projects, and even offers consultants on compliance services. The firm finances the construction of industrial gas abatement facilities, landfill gas capturing, and even reforestation projects which allow its clients to enter the carbon market in a sustainable manner. In December 2023, ClimeCo purchased Blue Source Sustainable Forests, increasing their portfolio of carbon offset projects.
   

Voluntary Carbon Credit Industry News

• In July 2024, ABACUS Label is set to be available through the efforts of Verra working towards the provision of high-quality credits for ecosystem restoration and reforestation projects. With the addition of this label, it is anticipated that the voluntary market will improve the credibility of carbon credits since it is much easier to account for emission reductions. Moreover, this development is going to be beneficial to the reporting of the carbon credits as it would encourage verification, improve the quality, and promoting the cutting-edge technologies to remove greenhouse gases.
   
• In May 2024, the direction of U.S. President and together with the U.S. Treasury Department and the U.S. Department of Agriculture the U.S. government issued a Carbon Credits policy statement. This statement supports the significance of voluntary carbon markets in the reduction of global GHG emissions, achieving net-zero by 2050, and restricting global temperature increase to 1.5°C. U.S. government also unveiled finalists from which it wishes to buy the first federal government issued carbon offset credits which is expected to contribute to the strengthening of the US voluntary carbon credit market.
   
• In October of 2024, the Global Climate Solutions company partnered with KEPSA in Kenya with the goal to ramp up climate and carbon financing for small and medium-sized enterprises. The initiative focuses on providing access to carbon credits and funds to help SMEs reduce emissions and adopt sustainable practices. The partnership endeavors to enhance carbon markets to achieve business empowerment, environmental stewardship, and Kenya’s climate targets for economic expansion and green innovation in the region.
   
• In April 2024, South Pole and GenZero have established a new facility to expand high-impact, pioneering carbon credits in Asia. This initiative seeks to boost investment in innovative carbon reduction projects, improve market transparency, and accelerate regional decarbonization, helping businesses achieve sustainability goals and advance climate action across the region.
   

This voluntary carbon credit market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (Million Credit) and revenue (USD Billion) from 2021 to 2034, for the following segments:

Market, By End Use

• Agriculture
• Carbon Capture & Storage
• Chemical Process
• Household & Community
• Industrial & Commercial
• Forestry & Land use
• Renewable Energy
• Waste Management
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Bulgaria
  • Romania
  • Netherlands
  • Switzerland
• Asia Pacific
  • China
  • India
  • Indonesia
  • Thailand
• Middle East & Africa
  • Turkey
  • Kenya
  • Nigeria
  • South Africa
• Latin America
  • Brazil
  • Chile
  • Peru