Voluntary Carbon Credit Market Size, Share & Trends Analysis Report By Project (Renewable Energy, Energy Efficiency), By Application (Industrial, Energy), By End-use (Private Companies, Government Agencies), By Region, And Segment Forecasts, 2025 - 2030

Voluntary Carbon Credit Market Summary

The market is expected to shift from focusing on reducing emissions to removing them altogether, with removal credits expected to account for 35% of the market by 2030. The growth of the voluntary carbon market is also driven by the increasing importance of carbon credits in achieving sustainability goals, with companies and governments recognizing the need for credible incentives for emissions reductions. The market is expected to continue to evolve, with the focus on quality and verifiability of credits becoming increasingly important.

Corporate net-zero commitments are a major driver of the growth in the voluntary carbon credit market. As companies pledge to achieve net-zero emissions, they are increasingly turning to the voluntary carbon market to offset the emissions they cannot fully eliminate through their own decarbonization efforts.This surge in demand is driven by the urgency for companies to act on climate change and demonstrate their commitment to sustainability. The voluntary carbon market provides a mechanism for companies to compensate for their residual emissions and contribute to global emissions reduction efforts.

The voluntary carbon credit market offers several opportunities for companies and individuals to reduce their carbon footprint and contribute to a more sustainable future. The market allows for the purchase and sale of carbon credits, which represent the reduction or removal of one tonne of carbon dioxide or its equivalent from the atmosphere.Key opportunities in the voluntary carbon credit market include the development of new carbon offset projects, the growth of carbon trading platforms, and the increasing adoption of carbon credits by companies and governments.

Market Driver, Trends & Opportunities

The voluntary carbon credit market is a rapidly growing sector. The market is driven by the increasing pressure on businesses to reduce their global greenhouse gas emissions and meet the ambitions of the 2015 Paris Agreement.Carbon credits are used to offset emissions, with two main types: carbon removal projects, which remove carbon from the atmosphere, and carbon avoidance projects, which prevent carbon that would otherwise have been released.

However, the market is plagued by integrity issues, with the quality of projects and credits varying widely. The lack of regulation and standardization has led to concerns over the legitimacy of credits and the potential for reputational risks for companies that purchase them. The Integrity Council for the Voluntary Carbon Market has launched a public consultation on its Core Carbon Principles (CCPs) to establish a definitive and consistent framework for the market. Additionally, the Voluntary Carbon Markets Integrity Initiative has launched an integrity code to ensure the responsible use of offsets by corporates.

Project Insights

Based on the project, the voluntary carbon credit market has been segmented into Renewable Energy, Energy Efficiency, Afforestation and Reforestation, Methane Capture and Destruction, and Others (soil carbon sequestration, energy efficiency).

Renewable energy dominated the voluntary carbon credit market with a revenue share of over 39.09% in 2024. This growth is driven by the increasing pressure on companies to reduce their carbon footprint and meet the ambitions of the Paris Agreement. Renewable energy projects, such as solar and wind farms, are a key area of focus for carbon credits, as they help support the cost of developing clean energy sources and make them more affordable. Carbon credits can also provide additional revenue streams for project developers, promoting the adoption of clean energy technologies.

Methane capture and destruction is expected to grow at a significant CAGR of 34.5% during the forecast period. The demand for voluntary carbon credits in Methane Capture and Destruction projects is significant, driven by the urgent need to reduce greenhouse gas emissions. Methane, a potent greenhouse gas, is produced and emitted by various sources, including landfills, agricultural activities, and coal mining.

Application Insights

Based on Application, the voluntary carbon credit market is segmented into industrial, household devices, energy, agriculture, and others. The industrial segment accounted for the highest revenue share of 32.21% in 2024. Industrial companies are increasingly looking to offset their emissions through carbon credits, which represent the reduction or removal of one tonne of carbon dioxide or its equivalent from the atmosphere. The demand for carbon credits in industrial applications is driven by the need to reduce emissions from various industrial processes, such as energy consumption, transportation, and manufacturing.

Household Devices is expected to grow at the highest CAGR of 35.5% in the coming years. Energy applications are a key driver of voluntary carbon credit market growth. Companies are investing in renewable energy projects like wind and solar farms that generate credits, while others purchase credits to offset emissions from traditional energy sources. This trend fuels both clean energy development and emissions reduction efforts.

End Use Insights

Based on end use, the voluntary carbon credit market is segmented into government agencies, non-governmental organizations (NGOs), private companies, and individuals. Private Companies dominated the voluntary carbon credit market and accounted for a share of over 62.13% in 2024. The private companies in the voluntary carbon credit market are driven by several factors. Firstly, the growing demand for corporate sustainability initiatives and net-zero targets is a significant driver. Companies are looking to offset their emissions through high-quality credits that align with their environmental and social goals. Secondly, the increasing adoption of carbon credits by governments and regulatory bodies is also driving the market. 

The individual segment emerged as fastest fastest-growing segment with a CAGR of 38.7%. Individuals can participate by purchasing carbon credits to offset their flights, energy consumption, or other activities that generate significant emissions. This can be done through various platforms, such as carbon offset programs offered by airlines or companies. The market is driven by the desire to reduce carbon emissions and support sustainable projects, with many individuals seeking to make a positive impact on the environment.

Regional Insights

North America voluntary carbon credit market dominated the global market and accounted for the largest revenue share of over 37.07% in 2024. The North America market is experiencing significant growth, driven by increasing demand for carbon offsetting and the need for companies to meet their sustainability goals.

U.S. Voluntary Carbon Credit Market Trends

U.S. voluntary carbon credit market dominates the North America market and accounted for a revenue share of over 81.0% in 2024. The surge in demand is largely attributed to companies and individuals seeking to reduce their carbon footprint and contribute to climate change mitigation efforts.

The voluntary carbon credit market in Canada is expected to grow at the fastest CAGR of 35.4%. The demand for carbon credits in Canada's voluntary carbon market (VCM) has grown significantly, driven by increasing corporate and individual demand for carbon offsetting.

Europe Voluntary Carbon Credit Market Trends

The European voluntary carbon credit market has seen significant growth, driven by strong demand from corporate buyers seeking high-quality credits.

The voluntary carbon credit market in Germany accounted for largest share of over 35.2% in 2024. The market is driven by strong demand from German corporates seeking to offset their emissions and meet their sustainability goals.

Spain voluntary carbon credit market is expected to progress with a CAGR of 36.8% over the forecast period. The Spanish voluntary carbon credit market is growing, driven by increasing demand from corporations and government initiatives. Nature-based credits, particularly forestry and land-use projects, are in high demand due to their ability to sequester carbon and offer co-benefits like biodiversity conservation and ecosystem restoration.

Asia Pacific Voluntary Carbon Credit Market Trends

The voluntary carbon credit market in Asia Pacific is driven by government initiatives and corporate sustainability goals, with forestry and land-use projects emerging as pivotal players in carbon sequestration and ecological benefits.

China voluntary carbon credit market is projected to grow at a significant rate. The market aims to supplement China's compulsory Emissions Trading Scheme (ETS) and support the country's goal of peaking carbon emissions by 2030 and achieving net-zero emissions by 2060.

The voluntary carbon credit market in India held a significant share in 2024, accounting for a share of over 15.30%. India's voluntary carbon credit market is expected to grow significantly, driven by increasing corporate demand for sustainability initiatives and favorable government policies.

Central & South America Voluntary Carbon Credit Market Trends

The Central & South America voluntary carbon credit market is projected to grow at a significant rate over the forecast period. The market is expected to emerge as a significant player in the global carbon credit market, driven by increasing demand and favorable policies.

The voluntary carbon credit market in Brazil accounted for the largest share of 49.4% in 2024 in the region. The country is a leader in this market due to its vast forests and renewable energy projects.

Middle East & Africa Voluntary Carbon Credit Market Trends

The Middle East & Africa voluntary carbon credit marketis expected to grow at a significant rate. The Middle East and Africa's voluntary carbon market is on the rise, fueled by initiatives like the UAE's $450 million commitment to African credits and the first-ever regional auction in Saudi Arabia.

Key Voluntary Carbon Credit Company Insights

The voluntary carbon credit market is becoming increasingly competitive, with leading players like South Pole, Verra, and Gold Standard differentiating themselves through high-integrity projects, robust certification standards, and transparent reporting to meet growing corporate demand for credible offsets. Emerging competitors are leveraging innovative technologies like blockchain (e.g., Toucan, KlimaDAO) and AI-driven monitoring to enhance traceability and reduce risks of double-counting, while nature-based solutions (e.g., reforestation, REDD+) and engineered removals (e.g., DAC, biochar) dominate premium-priced segments.

Recent Developments

• In April 2025, Microsoft secured a major agreement with BTG Pactual TIG for 8 million carbon removal credits, the largest deal of its kind. The company also boosted its soil carbon efforts by buying 40,000 verified credits from Indigo Ag. Both actions support Microsoft's target to become carbon negative by 2030.

• In June 2024, RVCMC hosted Nairobi's largest voluntary carbon credit auction, selling over 2.2 million tonnes. The credits were sourced from 18 regional projects focused on emission reductions and removals. Key buyers included Aramco, ENOWA, and Saudi Electricity Company.

• In April 2024, Saudi PIF-backed RVCMC partnered with Xpansiv to launch a new carbon credit exchange platform. The move aims to improve transparency and direct climate finance to underserved regions.

Voluntary Carbon Credit Market Report Scope

Global Voluntary Carbon Credit Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global voluntary carbon credit market report based on project, application, end use, and region:

• Project Outlook (Volume, Million Tons; Revenue, USD Million, 2018 - 2030)

  • Renewable Energy

  • Energy Efficiency

  • Afforestation and Reforestation

  • Methane Capture and Destruction

  • Others (soil carbon sequestration, energy efficiency)

• Application Outlook (Volume, Million Tons; Revenue, USD Million, 2018 - 2030)

  • Industrial

  • Household Devices

  • Energy

  • Agriculture

  • Others

• End Use Outlook (Volume, Million Tons; Revenue, USD Million, 2018 - 2030)

  • Government Agencies

  • Non-Governmental Organizations (NGOs)

  • Private Companies

  • Individuals

• Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Italy

    • Spain

    • France

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Indonesia

    • Malaysia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa