The voluntary carbon market (VCM) is undergoing a strategic transformation. According to the latest State of the Voluntary Carbon Market 2025 report by Forest Trends’ Ecosystem Marketplace, carbon credit trading volumes dropped 25% in 2024. Despite this, the number of credits being retired has held steady, signalling that while buyers are transacting less, they remain committed to emissions reductions and are increasingly seeking high-quality credits.
Close-up of a man inspecting a young tree seedling in a newly planted forest. AI generated picture.
This shift is being driven by a rising demand for quality over quantity. Buyers—ranging from corporations to individual investors—are increasingly prioritising carbon credits with strong environmental integrity and clear, verifiable impact. As regulatory scrutiny and investor expectations intensify, the market is adjusting accordingly.
Read more: High-quality carbon credits vs regular carbon credits: what sets them apart?
‘The underlying fundamental indicator of demand, the retirements, continue to grow and they have been growing on a pretty constant trend since the market was created’, said Ricardo Bayon, Partner and Co-founder of Encourage Capital. ‘Those companies and individuals who are buying carbon and retiring them are still doing so undeterred; chastened but not deterred. And so the market continues to grow... Buckle up. What goes down, can also go up.’
Voluntary Carbon Market Size by Volume of Traded Carbon Credits, pre-2005 to 2024.
In 2024, the average carbon credit price fell slightly by 5.5% to just over $6 per tonne of CO2e. Still, prices remain more than double those seen five years ago, underscoring strong interest in high-quality projects despite market uncertainty.
One major area of growth is removal credits—carbon offsets tied to projects that physically extract and store CO2, such as afforestation and direct air capture. These credits commanded an average price 381% higher than traditional emission reduction credits in 2024, reflecting the market’s preference for long-term nature-based solutions.
New integrity standards are also reshaping buyer behaviour. Credits from projects approved under the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles (CCPs) have seen notable increases in both volume and price, showing that trust and transparency are becoming decisive factors in purchasing decisions.
Read more: Aramco pushes offset boundaries with record carbon credit use
Vintage also matters. Recent credits—those issued in the last five years—sold at a 217% premium compared to older vintages, reinforcing the demand for timely environmental initiatives.
While traditional project types like renewable energy and REDD+ are losing ground, credits from improved forest management, landfill gas, and blue carbon projects are gaining traction.
The data paints a picture of a maturing market, where fewer trades do not mean less commitment—only more discernment. As reforms and standards take hold, the VCM appears to be laying the foundation for a more credible, resilient future.
Read more: Carbon credit price guide: Understanding spot, forward, and market factors
As the voluntary carbon market matures and buyers demand greater transparency, permanence, and environmental integrity, the value of high-quality, nature-based credits has never been clearer. At DGB Group, we’re at the forefront of this shift—designing and delivering certified carbon units rooted in science, measurable impact, and long-term ecosystem restoration. Whether it’s through forest regeneration, biodiversity enhancement, or energy-efficient cookstoves, our projects align with the market’s call for authenticity and accountability. Now is the time to invest in credits that truly count—discover how your business can lead the change.
