Market Development

In a report released just prior to COP28, Ecosystem Marketplace (EM) reveals that the Voluntary Carbon Market’s value remained at just under $2 billion in 2022. Despite a doubling of prices and a halving of volume compared to 2021, market conditions appear depressed in 2023, signaling a necessary regrouping before an anticipated acceleration. EM cites two reasons for projecting continued growth.

Firstly, the urgent global need for climate solutions to achieve the 28% reduction in greenhouse gas emissions by 2030, as mandated by the Paris Agreement. EM emphasizes the pivotal role of project-based and jurisdictional REDD+ carbon markets, along with innovative solutions like engineered removals.

Secondly, the commitment of buyers still in the market is evident in the marginal drop in prices from 2022 to 2023. Notably, credits with co-benefit certifications such as the Climate, Community, and Biodiversity Standard commanded a 78% premium, reflecting confidence in the market’s ability to enhance quality. Additionally, the higher pricing of new credits over older vintage credits underscores trust in market improvement.

https://www.ecosystemmarketplace.com/publications/state-of-the-voluntary-carbon-market-report-2023/