Carbon credit retirements grew by 0.2% in 2024, marking the first positive movement in the market since 2021.
Carbon credit retirement means taking a carbon credit—a certificate representing one tonne of carbon dioxide removed or not emitted—and marking it as “used” so it cannot be sold or traded again.
This is done to ensure the environmental benefit has been claimed and prevents double counting.
Sylvera’s State of Carbon Credits Report 2024 shows that retirements totalled 176 million, with a notable 25% rise in higher-quality credits rated BB and above, signalling increased willingness to invest in superior projects.
Retirements rated B and below fell 25% to 29.8 million. Buyers are also increasingly willing to pay premiums for higher-quality credits, with an average price increase of $5 per rating band for afforestation, reforestation and revegetation projects.
The report noted that 55% of retirements were tech avoidance solutions, while nature-based credits accounted for 45%.
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