A new report by SCB Group reveals that the voluntary carbon market (VCM) is entering a period of renewed activity, spurred by regulatory momentum and shifting demand patterns. Covering the second quarter of 2025, the report highlights a notable 28% quarter-on-quarter rise in carbon credit issuances, driven by both market mechanisms and evolving policy frameworks across major economies.
A close-up of energy-efficient cookstoves. Hongera Energy Efficient Cookstoves Project, DGB.
This resurgence comes as several governments step up their environmental targets. The European Union announced it will allow member states to use high-integrity international credits from 2036 to meet part of its 2040 green targets. Meanwhile, the UK has launched a sweeping consultation to formalise corporate transition plans and enhance ESG data oversight. Chile advanced its environmental legislation by capping emissions and integrating carbon offsets via its national registry, and airports worldwide are now required to use only high-quality credits for Scope 1 and 2 emissions under new global standards.
According to SCB, Q2 2025 saw 68 million carbon credits issued, with cookstove projects emerging as the largest contributor, accounting for 29% of total issuances. Nearly half came from Verra and half from the Gold Standard. Wind projects followed at 20%, largely issued under the Gold Standard, while REDD+ projects (all from Verra) made up 13%.
Supply by Registry.
The American Carbon Registry (ACR) played a pivotal role in the surge, increasing its issuance by 465% from the previous quarter. This lifted the total supply back to levels last seen in early 2024. Geographically, the United States led with 34% of all credits issued, followed by Mexico and India.
Despite the rise in supply, SCB reports that the market surplus for Verra and Gold Standard credits inched up to 675 million. However, REDD+ credits bucked the trend, with their surplus falling for the eighth consecutive quarter. Brazil was particularly affected, as several major REDD+ projects remain inactive.
Read more: From the ground up to space: seeing DGB’s impact in Uganda
Credit retirements rose 26% year-on-year to 42 million but dropped 13% compared to Q1 2025. Buyers showed a strong preference for recent vintages (2020 and later), which made up 69% of all retirements. Cookstove credits were once again the most retired technology type, with 7.5 million credits withdrawn from circulation.
India led global retirements with 16%, followed by the US and Brazil. While Verra retained the largest market share for retirements, it also recorded a 33% decline from the previous quarter. Gold Standard retirements, in contrast, remained more stable, especially for safe water projects.
Read more: Carbon credit market hits milestone with record retirements and quality uptick
With the voluntary carbon market showing clear signs of growth, demand is rapidly converging around projects that deliver both biodiversity and ecological value. At DGB Group, we see this momentum as a catalyst for large-scale nature restoration. Our nature-based carbon projects are designed to meet this rising demand with measurable impact, generating certified units that fund biodiversity protection, forest regeneration, and resilient local livelihoods. As this market is maturing, now is the time to be part of a movement that restores nature while driving real environmental solutions. Learn how you can compensate the smart way, starting today.
