Carbon credit retirements stay strong despite market slump. (Photo: iStock)
The non-profit Ecosystem Marketplace (EM) released its latest research on May 29, revealing that the voluntary carbon market (VCM) has reached its lowest transaction volume in six years. Total market value dropped by 29% year-on-year, while average credit prices fell 5.5%. Still, retirements of carbon credits remained strong, suggesting continued demand despite mounting market pressure.
Carbon credit volume drops 25% in 2024
According to the report, the total carbon credit transaction volume declined by 25% in 2024 compared to the previous year, with market value dropping to USD 535 million. However, both figures represent smaller declines than those seen in 2022, suggesting the market may be slowly recovering. Carbon credit retirements based on the top 10 global standards amounted to 182 million tonnes of CO₂ equivalent—near the highs seen since 2021.
