The voluntary carbon market (VCM) is undergoing a period of significant transition, with key indicators highlighting a mixed but cautiously optimistic landscape, according to a newly released report by Ecosystem Marketplace.
Despite market pressures and declining liquidity, the 2025 State of the Voluntary Carbon Market report reveals signs of enduring demand and growing buyer discernment.
While the overall transaction volume fell by 25%, the average price per carbon credit dropped only 5.5%, which suggests that underlying demand remains stable, even as fewer deals are being made.
One of the most notable trends is the shift in market focus toward quality, as buyers are increasingly targeting high-quality carbon credits, especially in a supply-constrained environment.
According to Ecosystem Marketplace, this is particularly evident in the rising value of carbon removal credits—credits that represent the physical removal of carbon dioxide (CO2) from the atmosphere.
Relevant: Hidden Shake-Up In The Voluntary Carbon Market Unveiled In Patch Report
While these credits still represent just 5% of total transaction volume, their price premium over emissions reduction credits surged by 381% in 2024, reflecting growing confidence in their long-term climate benefits and rising investor interest.
Another encouraging sign is that credit retirements—when carbon credits are permanently removed from the market to offset emissions—have remained steady, indicating that organizations follow through on their carbon offset commitments, even amid uncertainty and reduced issuance.
Market liquidity, while still in decline, is not falling as sharply as it did during the 2023–2024 period, suggesting that the worst of the downturn may have passed.
Overall, the report paints a picture of a maturing market where quality, transparency, and long-term impact are becoming key differentiators.
