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Experts generally optimistic about the carbon credit market in 2025. (Photo: iStock)
Global carbon emissions are expected to reach a new high in 2024, while the growth of the carbon credit market has stalled. However, the outlook for 2025 remains optimistic, as countries and companies continue to raise their emission reduction targets. Demand for carbon credits is expected to rise, though prices may face short-term pressure due to an oversupply. How will the carbon market develop in 2025?
1. Negative carbon technologies in focus
Due to concerns over greenwashing in voluntary carbon markets, there is increasing attention on decarbonization and carbon removal efforts. Both Deloitte and Wood Mackenzie mentioned in their year-end reports that while carbon credits derived from carbon removal tend to be priced higher, the market is progressively pursuing higher-quality credits. Additionally, carbon credit issuance bodies are establishing relevant methodologies, which are expected to drive the development of negative carbon technologies.
