Demand is climbing fast for carbon credits tied to high-integrity reforestation and ecosystem restoration. Tech giants like Microsoft and Google are leading the charge, backing afforestation, reforestation, and revegetation (ARR) projects with price tags reaching up to $70 per tonne of CO₂ equivalent (tCO₂e). These premium rates reflect more than just rising costs—they signal a shift in buyer expectations. Projects are under greater scrutiny, with biodiversity, transparency, and durability taking centre stage.
A photo of young tree seedlings growing in the foreground in front of Google office buildings, with two people sitting on a grass patch in the background using laptops. AI generated picture.
According to market observers, such high rates are the exception rather than the rule. Developers like Brazil-based Mombak are pushing the boundaries of biodiversity, planting up to 50 tree species in remote regions, which significantly elevates project costs compared to the monocultures that dominate the current supply.
One of the most notable recent transactions includes Microsoft’s procurement of credits from a Panamanian project developed by Ponterra, reportedly fetching close to $70/tCO₂e. In general, tech buyers are taking a rigorous approach, requesting detailed cost models and long-term forecasts, which include expected price declines as methods mature and scale.
These newer, often higher-priced ARR credits are typically verified under updated protocols like Verra’s VM0047. However, the market remains highly fragmented with no clear pricing benchmarks. The Symbiosis coalition—comprising Google, Meta, Microsoft, Salesforce, and McKinsey—is reportedly paying $50–$55 per credit on average as it works toward securing 20 million nature-based removals by 2030. 12 ARR projects are currently undergoing further evaluation, with the first selections expected to be announced between late 2025 and early 2026.
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Yet, outside the tech sphere, pricing is far more modest. Energy sector buyers often target credits at or below $20, while broader voluntary market prices range from $3 to $30/tCO₂e. Regional differences also play a role, with US-based projects fetching $30 to $50 due to higher land and labour costs.
Recent updates to the VM0047 methodology could also influence market dynamics. Verra clarified how developers can apply either census-based or land-based measurement approaches based on tree density per hectare. James Tansey, CEO of Carbon Done Right, noted that these updates have raised production costs but observed that demand remains strong. ‘The changes in the protocol to VM0047 definitely had a big impact on the production forecasts’, he said, ‘but it appears there is still strong demand.’
The adjustments may also unlock broader adoption of remote sensing tools in smaller projects, potentially appealing to buyers who have historically avoided more granular monitoring methods.
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At DGB Group, we’re committed to advancing the kind of high-integrity, nature-based solutions the market is now demanding—projects that go beyond monocultures to restore diverse ecosystems, empower local communities, and generate independently verified carbon credits. As global buyers increasingly prioritise transparency, biodiversity, and long-term impact, our model stands ready to meet that call. Now is the time to join this momentum and invest in solutions that deliver lasting environmental and social value.
