The latest EY report on the 2024 Global Voluntary Carbon Market outlines critical shifts in carbon credit dynamics, indicating a potential surge in prices and an increasing focus on high-integrity credits. By 2035, prices could reach $75–125 per tonne, with approximately half of the credits expected to exceed $50. Demand for removal-based credits is projected to outpace avoidance credits as companies prioritise removal solutions for net-zero transitions.
Bottom view of growing tree seedlings. AI generated picture.
As carbon credits gain popularity, the report notes a stronger push for high-quality credits with social and environmental benefits. Credits linked to biodiversity and community support are particularly in demand, although the market still faces challenges with standardisation and integrity. Varying regional standards create a fragmented regulatory landscape, complicating global alignment and pushing businesses to seek more reliable, verifiable credit sources.
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Voluntary and compliance markets are increasingly interlinked, as several governments consider voluntary credits for regulatory compliance. This evolving landscape is likely to bring stricter regulations, influencing both market operations and credit costs. The report also highlights the growing significance of nature-based solutions, such as reforestation, which offer co-benefits to ecosystems and communities, presenting a cost-effective method for carbon removal.
Projects in developing regions, particularly across the Global South, are essential for future carbon credit supply, emphasising the need for fair distribution of benefits to host communities. Meanwhile, new policies like the EU’s Carbon Border Adjustment Mechanism (CBAM) are anticipated to drive up demand, particularly for companies exporting to the EU.
The report concludes that while high-quality carbon credits are set to become more expensive, they remain critical for companies aiming to decarbonise. Businesses engaging early with carbon markets are better positioned to meet stakeholder expectations, manage risks, and capitalise on emerging opportunities in the race to net zero. However, achieving these goals will require transparent frameworks, trusted intermediaries, and a strong commitment to rigorous standards across global markets.
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At DGB Group, we empower businesses and individuals to compensate for their carbon footprints through impactful, nature-based projects that foster environmental and socio-economic benefits. Our mission is to restore ecosystems and plant trees worldwide, ensuring that every step toward carbon compensation contributes to a healthier planet. Now more than ever, it’s essential for companies to take action to decarbonise—for the benefit of both our planet and the economy.
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