Call Us On +47 486 74 335

Current State of Voluntary Carbon Markets (VCMs)

The global voluntary carbon market has grown substantially since its inception in the early 1990s1. Despite this growth, the market has faced challenges related to offset quality and fragmentation1. As of August 31, 2021, voluntary carbon markets had already posted $748.2M USD in sales for 239.3 million credits, reflecting a 58% year-to-date jump in value and a 27% growth in credit volume over 2020. In 2021, the voluntary carbon market grew at a record pace, reaching $2 billion—four times its value in 2020.


Future of Voluntary Carbon Markets

Experts and analysts predict a bright future for VCMs. The Taskforce on Scaling Voluntary Carbon Markets (TSVCM) estimates that demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of up to 100 by 2050. A bottom-up analysis of the 2,000 leading global companies by Bain & Company suggests the voluntary carbon market could provide demand for up to 2.6 gigatonnes (Gt) of carbon credits by 2030, approximately 13 times larger than the market in 2021. By 2030, the market is expected to reach between $10 billion and $40 billion.

However, the market’s growth will depend on addressing current challenges, including reputational and functional concerns about offset quality, fragmentation, and the lack of long-term regulatory obligations or pricing signals on carbon. There is a growing intersection between government and private sector activity in voluntary markets, and these novel initiatives demonstrate how market design choices imply different goals for voluntary markets.

Please note that these are high-level overviews and the actual growth may vary based on various factors including regulatory changes, technological advancements, and global commitment towards climate change mitigation. For more detailed information, please refer to the cited sources or consult with a qualified professional.