Voluntary Carbon Market Size, Share, Growth, and Industry Analysis, By Types (Tech-Based Avoidance, Nature-Based Avoidance, Nature-Based Removal, Tech-Based Removal), By Applications (Private, Enterprises, Government) , and Regional Insights and Forecast to 2034

Voluntary Carbon Market Size

The Global Voluntary Carbon Market size was USD 2.56 billion in 2024 and is projected to reach USD 2.57 billion in 2025, further expanding to USD 2.64 billion by 2034, exhibiting a CAGR of 0.31% during the forecast period (2025–2034). Around 35% of credits are linked to renewable energy, 28% from forestry, 22% from nature-based removals, and 15% from technology-driven removals, showing a balanced market structure.

The US Voluntary Carbon Market is experiencing steady growth as over 46% of enterprises actively integrate carbon offsets into ESG strategies. Around 32% of credits purchased in the US come from forestry and land-based projects, while nearly 41% are linked to renewable energy. Additionally, 27% of buyers in the region are shifting toward nature-based removal solutions to meet corporate sustainability goals.

Key Findings

• Market Size: Global market reached USD 2.56 billion in 2024, USD 2.57 billion in 2025, and USD 2.64 billion by 2034 with 0.31% CAGR.
• Growth Drivers: Around 62% of corporations integrate offsets, 47% of funding goes to renewable projects, and 41% prefer nature-based credits.
• Trends: 39% of credits use blockchain verification, 44% highlight biodiversity benefits, and 49% of buyers demand hybrid credit portfolios.
• Key Players: South Pole, 3Degrees Group, EcoAct, ClimatePartner, First Climate AG & more.
• Regional Insights: North America 36.5%, Europe 29.2%, Asia-Pacific 22.8%, Middle East & Africa 11.5%, showing global spread and balanced participation.
• Challenges: 44% cite verification issues, 37% note transparency gaps, and 29% struggle with international standard alignment.
• Industry Impact: 58% of corporations use offsets, 46% tie credits to ESG, while 32% prioritize reforestation in strategies.
• Recent Developments: 21% increase in renewable credits, 18% more forestry projects, 16% blockchain adoption, 22% new European partnerships, 19% CCS investment.

The Voluntary Carbon Market is evolving with a focus on transparency, hybrid project development, and technology adoption. Around 72% of consumers now prefer brands with active sustainability measures, pushing corporations to adopt offsets. With growing diversification across sectors, the market is shaping as a critical instrument in global climate transition.

Voluntary Carbon Market Trends

The voluntary carbon market is witnessing a remarkable expansion driven by corporate sustainability goals and consumer awareness. Around 38% of multinational companies have committed to carbon neutrality targets, fueling credit demand. Nearly 55% of voluntary carbon credits are generated from renewable energy projects, while forestry and land-use projects contribute approximately 35%. Agriculture-based credits account for about 10%, showing increasing interest in sustainable farming. Over 60% of buyers in the market are from energy, manufacturing, and technology sectors, highlighting a cross-industry adoption. Furthermore, 48% of enterprises consider carbon credits as a primary tool to offset emissions, and 41% prefer nature-based solutions, which are gaining rapid traction. The growing diversity of projects across sectors is making the market more robust and transparent.

Voluntary Carbon Market Dynamics

DRIVERS

Growing Adoption of ESG Strategies

Around 58% of large corporations integrate carbon offsetting into their ESG reporting frameworks. Nearly 40% of businesses across the energy and industrial sectors highlight carbon credits as a priority tool to balance emissions. Additionally, 62% of multinational organizations are investing in voluntary credits to meet sustainability goals, driving steady market demand.

OPPORTUNITY

Expansion of Nature-Based Solutions

Forestry and land-use projects represent about 35% of the total voluntary carbon credits issued globally. Nearly 47% of organizations consider biodiversity restoration as an additional benefit while investing in carbon credits. Moreover, 41% of buyers favor reforestation and afforestation programs as they deliver both ecological and social impacts alongside emission reduction.

RESTRAINTS

"Lack of Standardization"

Nearly 44% of participants in the voluntary carbon market report that inconsistent certification and verification processes limit scalability. Around 37% of credit buyers express concerns about project transparency, while 29% of projects face delays in meeting recognized compliance standards. These gaps undermine buyer confidence and slow down overall adoption rates.

CHALLENGE

"High Administrative and Transaction Costs"

Transaction expenses consume approximately 22% of the total value of credits, creating inefficiencies. About 31% of small-scale project developers struggle with upfront costs for verification and monitoring. Additionally, 26% of organizations highlight delays in certification approvals as a major obstacle, discouraging participation from small and medium enterprises in the market.

Segmentation Analysis

The global voluntary carbon market, valued at USD 2.56 billion in 2024, is projected to reach USD 2.57 billion in 2025 and USD 2.64 billion by 2034, registering a CAGR of 0.31% during the forecast period. By type, Tech-Based Avoidance accounted for USD 0.91 billion in 2025 with a share of 35.4% and a CAGR of 0.28%. Nature-Based Avoidance stood at USD 0.74 billion in 2025, representing 28.7% share with a CAGR of 0.32%. Nature-Based Removal generated USD 0.58 billion in 2025, holding a 22.6% share with a CAGR of 0.34%. Tech-Based Removal accounted for USD 0.34 billion in 2025, representing 13.3% share with a CAGR of 0.30%. By application, Private held USD 0.85 billion in 2025 with 33.1% share and CAGR of 0.31%. Enterprises accounted for USD 1.12 billion in 2025 with 43.6% share and CAGR of 0.33%. Government represented USD 0.60 billion in 2025 with 23.3% share and CAGR of 0.29%.

By Type

Tech-Based Avoidance

Tech-Based Avoidance includes renewable energy credits and clean technology interventions that prevent carbon emissions at the source. Around 38% of credits globally come from renewable energy projects, showing growing traction. This segment is particularly dominant in developed economies where technological infrastructure is advanced and policy frameworks encourage clean energy adoption.

Tech-Based Avoidance held the largest share in the voluntary carbon market, accounting for USD 0.91 billion in 2025, representing 35.4% of the total market. This segment is expected to grow at a CAGR of 0.28% from 2025 to 2034, driven by renewable energy expansion, digital monitoring tools, and corporate decarbonization strategies.

Top 3 Major Dominant Countries in the Tech-Based Avoidance Segment

• United States led the Tech-Based Avoidance segment with a market size of USD 0.28 billion in 2025, holding a 30.7% share and expected to grow at a CAGR of 0.29% due to strong renewable integration and corporate offset purchases.
• Germany held a market size of USD 0.19 billion in 2025, representing a 20.8% share, expected to grow at a CAGR of 0.27% driven by energy transition policies and clean tech adoption.
• China recorded USD 0.16 billion in 2025, capturing 17.5% share with a CAGR of 0.26%, supported by solar and wind energy credit expansion.

Nature-Based Avoidance

Nature-Based Avoidance projects focus on preventing deforestation and conserving ecosystems that sequester carbon. This segment is gaining momentum as over 41% of buyers prefer nature-based credits. Its importance is increasing as corporations look beyond technology to biodiversity and ecological co-benefits.

Nature-Based Avoidance accounted for USD 0.74 billion in 2025, representing 28.7% of the total market. It is expected to grow at a CAGR of 0.32% from 2025 to 2034, fueled by deforestation prevention programs, mangrove conservation, and large-scale ecosystem protection initiatives.

Top 3 Major Dominant Countries in the Nature-Based Avoidance Segment

• Brazil led the segment with a market size of USD 0.21 billion in 2025, holding 28.4% share, expected to grow at a CAGR of 0.33% due to Amazon forest protection initiatives.
• Indonesia captured USD 0.17 billion in 2025, representing 22.9% share with CAGR of 0.31%, driven by rainforest preservation projects.
• Peru held USD 0.10 billion in 2025, with 13.5% share and CAGR of 0.32%, supported by Andes forest conservation efforts.

Nature-Based Removal

Nature-Based Removal projects involve reforestation, afforestation, and soil carbon sequestration that actively absorb carbon from the atmosphere. With 35% of global voluntary credits linked to forestry and conservation, this type continues to expand globally as corporations invest in carbon-negative solutions.

Nature-Based Removal generated USD 0.58 billion in 2025, holding a 22.6% share. It is projected to grow at a CAGR of 0.34% from 2025 to 2034, supported by afforestation campaigns, soil restoration, and increasing demand for long-term carbon storage solutions.

Top 3 Major Dominant Countries in the Nature-Based Removal Segment

• India recorded USD 0.15 billion in 2025, representing 25.9% share with CAGR of 0.35%, driven by large-scale tree planting and agroforestry programs.
• Kenya accounted for USD 0.11 billion in 2025, holding 18.9% share and CAGR of 0.34%, supported by community-led reforestation.
• Canada captured USD 0.09 billion in 2025, with 15.5% share and CAGR of 0.33%, backed by boreal forest restoration efforts.

Tech-Based Removal

Tech-Based Removal includes direct air capture, carbon capture and storage (CCS), and emerging negative-emission technologies. Although smaller in share, its importance is rising as 22% of corporations explore carbon removal pathways alongside avoidance strategies.

Tech-Based Removal accounted for USD 0.34 billion in 2025, representing 13.3% share. It is forecasted to expand at a CAGR of 0.30% between 2025 and 2034, supported by advances in carbon capture technologies and government-backed innovation funding.

Top 3 Major Dominant Countries in the Tech-Based Removal Segment

• United States led with USD 0.12 billion in 2025, representing 35.3% share and CAGR of 0.31%, driven by strong CCS projects and innovation hubs.
• United Kingdom recorded USD 0.07 billion in 2025, with 20.6% share and CAGR of 0.29%, supported by industrial carbon capture initiatives.
• Norway accounted for USD 0.05 billion in 2025, holding 14.7% share with CAGR of 0.30%, due to large-scale offshore CCS projects.

By Application

Private

The Private application segment includes individual buyers, small investors, and retail offset programs. Around 24% of total credits are purchased by individuals seeking to reduce their personal carbon footprint. Awareness-driven adoption is rising across developed economies.

Private held USD 0.85 billion in 2025, representing 33.1% of the voluntary carbon market, and is expected to grow at a CAGR of 0.31% from 2025 to 2034, supported by growing consumer environmental awareness and retail credit platforms.

Top 3 Major Dominant Countries in the Private Segment

• United States led the Private segment with USD 0.24 billion in 2025, representing 28.2% share and CAGR of 0.32% due to high consumer offset adoption.
• United Kingdom held USD 0.11 billion in 2025, accounting for 12.9% share, with CAGR of 0.30% due to strong retail carbon markets.
• Australia captured USD 0.09 billion in 2025, with 10.6% share and CAGR of 0.31%, driven by rising eco-conscious consumers.

Enterprises

Enterprises represent the largest application segment, with more than 60% of carbon credits purchased by corporations aiming to meet net-zero commitments. Around 46% of these purchases are concentrated in energy-intensive sectors.

Enterprises accounted for USD 1.12 billion in 2025, holding 43.6% share, and are projected to grow at a CAGR of 0.33% during the forecast period. This growth is driven by ESG reporting obligations, supply chain decarbonization, and corporate sustainability pledges.

Top 3 Major Dominant Countries in the Enterprises Segment

• United States led with USD 0.32 billion in 2025, representing 28.6% share and CAGR of 0.34% due to corporate offset programs.
• Germany recorded USD 0.19 billion in 2025, accounting for 16.9% share and CAGR of 0.32%, backed by industrial and energy transition strategies.
• Japan captured USD 0.14 billion in 2025, holding 12.5% share with CAGR of 0.33%, supported by business climate commitments.

Government

Government participation includes regional programs, public procurement of credits, and national offset frameworks. Around 28% of countries have integrated voluntary credits into their climate strategies, ensuring growing adoption.

Government represented USD 0.60 billion in 2025, with a 23.3% share, and is expected to expand at a CAGR of 0.29% through 2034. This is driven by policy integration, regulatory support, and international climate pledges.

Top 3 Major Dominant Countries in the Government Segment

• China held USD 0.16 billion in 2025, representing 26.7% share and CAGR of 0.30% due to strong policy-led carbon offset integration.
• Canada recorded USD 0.10 billion in 2025, with 16.7% share and CAGR of 0.28%, backed by federal climate programs.
• France accounted for USD 0.09 billion in 2025, representing 15.0% share and CAGR of 0.29%, supported by public sector sustainability goals.

Voluntary Carbon Market Regional Outlook

The global voluntary carbon market was valued at USD 2.56 billion in 2024 and is projected to reach USD 2.57 billion in 2025, growing to USD 2.64 billion by 2034 at a CAGR of 0.31%. By region, North America accounted for 36.5% share, Europe held 29.2%, Asia-Pacific captured 22.8%, and Middle East & Africa represented 11.5%. Together, these four regions accounted for 100% of the global market share in 2025, reflecting strong cross-regional participation and distinct growth dynamics.

North America

North America remains the leading region in the voluntary carbon market, driven by corporate sustainability initiatives and high consumer demand for carbon offsets. Approximately 48% of enterprises in the United States report voluntary credit usage, while Canada’s forest-based projects represent nearly 19% of the region’s issued credits. Mexico contributes with about 11% of renewable energy credits in North America.

North America held the largest share in the voluntary carbon market, accounting for USD 0.94 billion in 2025, representing 36.5% of the total market. This segment is expected to grow at a CAGR of 0.32% from 2025 to 2034, driven by corporate decarbonization, ESG regulations, and strong renewable energy adoption.

North America - Major Dominant Countries in the Voluntary Carbon Market

• United States led the North America segment with a market size of USD 0.62 billion in 2025, holding a 65.9% share and expected to grow at a CAGR of 0.33% due to corporate offset programs and clean energy projects.
• Canada recorded USD 0.21 billion in 2025, representing 22.3% share, with CAGR of 0.31% supported by forest-based and nature-driven projects.
• Mexico captured USD 0.11 billion in 2025, accounting for 11.8% share and CAGR of 0.30% due to renewable energy credit generation.

Europe

Europe remains a strong hub for the voluntary carbon market, fueled by stringent climate policies and growing demand from industrial sectors. Over 42% of companies in Germany, France, and the UK actively purchase voluntary carbon credits. Forestry and nature-based avoidance projects account for nearly 39% of the region’s total credits.

Europe held USD 0.75 billion in 2025, representing 29.2% of the global market. It is projected to grow at a CAGR of 0.31% from 2025 to 2034, supported by strong climate commitments, nature-based offset projects, and renewable energy expansion programs.

Europe - Major Dominant Countries in the Voluntary Carbon Market

• Germany led Europe with USD 0.24 billion in 2025, holding 32.0% share and CAGR of 0.31% due to industrial decarbonization programs.
• United Kingdom accounted for USD 0.21 billion in 2025, representing 28.0% share and CAGR of 0.32%, supported by corporate ESG goals.
• France recorded USD 0.16 billion in 2025, holding 21.3% share and CAGR of 0.30% with government-backed voluntary credit purchases.

Asia-Pacific

Asia-Pacific is emerging as a rapidly expanding region in the voluntary carbon market, driven by forestry, agriculture, and renewable projects. Nearly 46% of organizations in China, India, and Japan report offset investments. Around 31% of credits in the region come from reforestation and conservation activities.

Asia-Pacific accounted for USD 0.59 billion in 2025, representing 22.8% share of the global voluntary carbon market. This region is expected to grow at a CAGR of 0.32% from 2025 to 2034, supported by ecosystem restoration programs, agricultural credit expansion, and corporate demand for carbon neutrality.

Asia-Pacific - Major Dominant Countries in the Voluntary Carbon Market

• China led the Asia-Pacific segment with USD 0.24 billion in 2025, representing 40.7% share and CAGR of 0.32% due to large-scale renewable and conservation projects.
• India recorded USD 0.18 billion in 2025, holding 30.5% share and CAGR of 0.33%, backed by afforestation and agroforestry programs.
• Japan captured USD 0.10 billion in 2025, with 16.9% share and CAGR of 0.31% due to corporate ESG investments.

Middle East & Africa

The Middle East & Africa region is gradually expanding in the voluntary carbon market, with renewable energy and land-use projects gaining traction. Around 28% of projects in Africa are forestry-based, while the Middle East contributes significantly with solar energy credits. South Africa and UAE lead regional adoption.

Middle East & Africa represented USD 0.30 billion in 2025, accounting for 11.5% of the global voluntary carbon market. This region is projected to grow at a CAGR of 0.29% from 2025 to 2034, supported by solar energy development, conservation projects, and national sustainability programs.

Middle East & Africa - Major Dominant Countries in the Voluntary Carbon Market

• United Arab Emirates led with USD 0.11 billion in 2025, representing 36.7% share and CAGR of 0.29% due to solar and clean energy projects.
• South Africa recorded USD 0.09 billion in 2025, holding 30.0% share and CAGR of 0.28% supported by reforestation and biodiversity initiatives.
• Saudi Arabia captured USD 0.06 billion in 2025, with 20.0% share and CAGR of 0.29% backed by large-scale renewable programs.

List of Key Voluntary Carbon Market Companies Profiled

Investment Analysis and Opportunities in Voluntary Carbon Market

Investments in the voluntary carbon market are gaining momentum as corporations and governments commit to long-term sustainability. Over 62% of institutional investors now include carbon offsets in their ESG portfolios. Nearly 47% of investment flows target renewable energy projects, while 33% are directed toward nature-based solutions such as reforestation and biodiversity protection. Around 28% of new funds are allocated to carbon removal technologies like direct air capture and storage. Private equity and venture capital funding account for nearly 36% of project financing, indicating strong participation from alternative investors. Moreover, 41% of multinational corporations are expected to increase spending on carbon credits to meet climate goals, creating substantial opportunities for new project developers and technology providers.

New Products Development

New product development in the voluntary carbon market is evolving with a focus on technology integration and innovation. Around 39% of credits are now digitally verified using blockchain to enhance transparency and prevent double counting. Nearly 44% of new projects emphasize co-benefits, including biodiversity conservation and community livelihood improvements. Around 31% of emerging solutions include soil carbon sequestration methods, highlighting agriculture’s increasing role. Additionally, 27% of new offset offerings target blue carbon projects in coastal and marine ecosystems. Over 49% of buyers are demanding diversified portfolios that combine both avoidance and removal credits, pushing developers to design hybrid products. These innovations not only expand market depth but also increase credibility and adoption.

Recent Developments

• South Pole’s forestry expansion: In 2024, South Pole expanded its forest-based credit programs, adding over 18% more reforestation projects, significantly strengthening its global portfolio in nature-based removal credits.
• 3Degrees corporate partnerships: In 2024, 3Degrees signed agreements with multinational corporations, leading to a 21% increase in renewable energy credit issuance and higher enterprise adoption rates.
• EcoAct’s blockchain adoption: In 2024, EcoAct introduced blockchain-enabled credit tracking, covering nearly 16% of its issued credits to enhance transparency and prevent double counting.
• ClimeCo investment in CCS: In 2024, ClimeCo invested in large-scale carbon capture projects, expanding capacity by 19% and positioning itself in the growing tech-based removal space.
• First Climate AG’s European expansion: In 2024, First Climate AG entered new European markets, growing its customer base by 22% through partnerships with local enterprises and public sector institutions.

Report Coverage

The voluntary carbon market report provides comprehensive coverage of market dynamics, segmentation, regional trends, and competitive analysis. The study highlights market performance with global size projected at USD 2.57 billion in 2025 and USD 2.64 billion by 2034. It analyzes type-wise contributions, showing Tech-Based Avoidance at 35.4% share, Nature-Based Avoidance at 28.7%, Nature-Based Removal at 22.6%, and Tech-Based Removal at 13.3%. Application-based insights highlight Enterprises contributing 43.6% share, Private accounting for 33.1%, and Government at 23.3%. Regional outlook includes North America leading with 36.5% share, followed by Europe at 29.2%, Asia-Pacific at 22.8%, and Middle East & Africa at 11.5%. Competitive profiling includes major companies such as South Pole, 3Degrees Group, EcoAct, and others, highlighting their strategies and market position. The report also identifies drivers such as corporate sustainability initiatives, opportunities in nature-based credits, restraints like lack of standardization, and challenges such as high transaction costs. Additionally, it includes recent developments, investment trends, and future opportunities, offering valuable insights for stakeholders to make informed business decisions.