State of the Voluntary Carbon Market 2024
The Ecosystem Marketplace’s 2023 Carbon Market Review shows that the voluntary carbon market (VCM) contracted for the second consecutive year since its 2021 peak. Transaction volumes fell by 56% from 2022, with buyers paying $6.53 per ton of CO2e—slightly less than in 2022 but higher than pre-2022 levels. Total transaction value dropped by 61% to $723 million. Forestry and Land Use, along with Renewable Energy credits, experienced the largest declines, particularly REDD+ credits, which lost 62% in value and 51% in volume due to intense scrutiny, especially regarding project additionality calculations, governance, and potential greenwashing.
The review shows that buyers responded by seeking credits that ensure emissions removals and additionality, with a preference for Afforestation-Reforestation (ARR) and Improved Forest Management (IFM) projects. The ICVCM’s Core Carbon Principles and VCMI’s Claims Code contributed to restoring buyer confidence in market quality and integrity. However, delays in implementing these initiatives and unclear guidance from the SBTi curbed demand.
The RBI is deeply concerned by these developments, as they significantly undermine efforts to halt tropical deforestation, particularly the loss of primary forests.”
