Shell and Microsoft have emerged as the largest buyers in the voluntary carbon market (VCM) in 2024, according to the Allied Offsets report. Despite sharing the goal of mitigating emissions, their approaches reveal stark differences in priorities and methods, reflecting broader trends in the carbon credit market.
Low-angle view of two towering green trees with dense canopies. AI generated picture.
Shell: emissions avoidance at scale
Shell retired 14.5 million carbon credits in 2024, solidifying its top position for the second consecutive year. A significant portion—9.4 million credits—supported forestry and land-use projects aimed at preventing emissions by protecting existing carbon stores..
In addition, Shell retired 2.4 million renewable energy credits. With an average credit price of only $4.15, it prioritises affordability and scale in its sustainability strategy. Despite its large-scale purchases, Shell announced plans to downsize its involvement in nature-based solutions, signalling a strategic shift.
Shell is striving for net-zero emissions by 2050, with interim goals to halve operational emissions by 2030, using 2016 baselines. This aligns with its broader aim of balancing cost-effectiveness with environmental impact.
A chart illustrating energy firms' dominance in 2024 on the carbon credit market.
Microsoft: driving carbon removal innovation
In contrast, Microsoft retired 5.5 million carbon credits, focusing heavily on innovative carbon removal technologies. Nearly 80% of its credits came from bioenergy with carbon capture and storage (BECCS) projects, including a landmark deal with Stockholm Exergi in Sweden. BECCS captures and stores carbon released during biomass combustion, offering carbon-negative results critical to global net-zero pathways.
However, this cutting-edge approach comes with high costs—Microsoft’s average credit price reached $189 in 2024, with BECCS projects significantly higher. Despite these challenges, the tech giant remains committed to becoming carbon-negative by 2030, showcasing its leadership in sustainable technology.
Read more: Greening the blueprint: Microsoft's 2030 carbon negativity roadmap
The 2024 carbon market saw increased interest in high-quality carbon removal projects, though overall credit retirements plateaued for a third year. This reflects a shift in buyer preferences toward impactful solutions like direct air capture and BECCS. While renewable energy and forestry credits still dominate, their share has declined from 80% in 2020 to 70% in 2024.
Challenges persist, including an oversupply of credits, particularly older Clean Development Mechanism (CDM) offsets criticised for limited impact. Despite these issues, the number of buyers grew slightly, with over 6,500 companies participating in 2024, predominantly from the energy and financial sectors.
Shell and Microsoft’s contrasting approaches—Shell focusing on affordability and scale, and Microsoft prioritising innovation—offer valuable lessons for companies navigating the evolving carbon market. As 2025 approaches, their leadership in the VCM highlights the critical role of carbon credits in global sustainability efforts.
Read more: Historic year for Germany: $19b earned in emissions trading
By partnering with DGB Group, your business can join a growing global movement to address emissions and drive meaningful, sustainable change. Just as companies like Shell and Microsoft leverage the carbon market to meet their sustainability goals, DGB’s high-quality carbon units offer businesses an effective way to address emissions and make a lasting environmental impact.
Through innovative nature-based projects such as reforestation and ecosystem restoration, DGB provides solutions that restore biodiversity, empower communities, and align with your financial objectives. Our carbon units enable businesses of all sizes to contribute to a greener, more equitable future while demonstrating leadership in sustainability.
