Carbon credit retirements soared to a record-breaking 95 million in the first half of 2025, marking a pivotal moment in the voluntary carbon market’s evolution. The surge underscores growing demand for high-quality offsets and increasing alignment with compliance schemes.
Forest workers planting new trees in a mature forest as part of a reforestation project. AI generated picture.
According to an analysis from carbon data firm Sylvera, retirements—which indicate the permanent use of a credit to offset emissions—have reached their highest half-year total to date. Simultaneously, supply has accelerated, with 77 million new credits issued in Q2 2025 alone—a 39% jump from Q1 and a 14% year-on-year increase.
A notable trend in the data is the rising share of higher-quality credits. Of those rated by Sylvera and retired in H1, 57% received a BB rating or higher, up from 52% in 2024. This reflects growing market scrutiny and the influence of initiatives like the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles.
Retirements hit a record high with 95 million credits retired in H1 2025.
Allister Furey, CEO at Sylvera, noted, ‘Demand for credits and, in particular, high-quality credits is at an all-time high... Market alignment with both integrity and regulatory expectations is starting to unlock the potential of carbon markets to deliver genuine climate impact at lower economic costs.’
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The market is also increasingly shaped by international compliance frameworks. Over one-third (37%) of credits issued this quarter could be eligible for Phase 1 of CORSIA, the UN-backed aviation offsetting scheme. This is a significant rise from 28% during the same period in 2024. Whether these credits will meet host country authorisation requirements under Article 6 of the Paris Agreement remains to be seen, but the trajectory signals deepening regulatory convergence.
Continued move toward higher quality, 57% of rated credits retired BB or higher.
Nature-based credits—particularly Afforestation, Reforestation, and Revegetation (ARR)—remained dominant in issuance volume, but industrial and commercial projects gained ground, now comprising 19% of total issuance compared to just 7.9% in H1 2024. REDD+ projects also rebounded, rising to 16% of Q2 issuances.
Geographic shifts were also notable. North America accounted for 43% of Q2 credit issuance, doubling its market share from Q1. The American Carbon Registry led all registries for the first time, outpacing Gold Standard and Verra.
As regulatory guidance firms up ahead of COP29 and mechanisms like PACM enter the market, voluntary and compliance carbon credit systems are converging. With higher integrity standards and increased issuance activity, the market is transitioning into a more mature and scalable phase, better equipped to deliver verified environmental outcomes.
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As carbon markets evolve with rising integrity standards and growing demand for high-quality credits, DGB Group stands at the forefront of this transformation. As a publicly listed company on Euronext, we deliver large-scale, nature-based solutions that not only meet the stringent benchmarks highlighted in today’s market trends but go further—restoring ecosystems, enhancing biodiversity, and supporting communities on the ground. Whether you're seeking to secure spot credits or forward contracts, DGB offers Verra and Gold Standard-certified carbon units backed by full impact transparency. Discover how your business can invest in real environmental impact and unlock long-term value—starting today.
