Carbon credit retirements reached a historic peak in the first half of 2025, with 95 million credits retired, or permanently removed from circulation, marking the highest half-year total ever recorded, according to carbon data specialist Sylvera.
This milestone signals accelerating activity in the voluntary carbon market (VCM) as organizations seek to offset emissions with greater emphasis on quality and credibility.
The surge in retirements is paired with a significant rise in new credit issuances, Sylvera said in its most recent quarterly Carbon Data Snapshot.
In Q2 2025 alone, 77 million credits were issued, representing a 39% increase from the previous quarter and a 14% rise year-over-year.
This growth highlights renewed confidence in the market and an expanding pipeline of climate projects.
Notably, 37% of these newly issued credits may qualify for Phase 1 of CORSIA, the United Nations (UN) aviation sector’s carbon offsetting scheme, pending host country authorization under Article 6 of the Paris Agreement—a sharp rise from 28% in the same period last year.
Sylvera further noted that the market’s evolution is being shaped not just by volume but by quality.
In the first half of 2025, 57% of retired credits rated by Sylvera held ratings of BB or higher, up from 52% in 2024.
This shift reflects a more discerning buyer base, guided by clearer standards such as the ICVCM’s Core Carbon Principles and growing use of independent ratings and due diligence.
“Demand for credits and, in particular, high-quality credits is at an all-time high,” Sylvera’s CEO, Allister Furey, said.
Nature-based solutions continue to dominate issuances, with Forestry and Land Use projects accounting for 31% of new credits.
Among them, Afforestation, Reforestation, and Revegetation (ARR) projects commanded an average price of $24 per credit, and up to $27 for highly rated ones, driven by their limited availability and strong buyer interest.
Relevant: CDR.fyi And Sylvera Survey: 45% Of Carbon Credits To Come From Engineered Approaches By 2030
Meanwhile, industrial and commercial carbon projects have seen sharp growth, increasing to 19% of all issuances in H1 2025 from just 7.9% a year earlier.
These include initiatives like refrigerant reclamation, methane capture, and efficiency upgrades in heavy industry.
North America’s role in the market is also expanding rapidly, as the continent accounted for 43% of new issuances in Q2, up from 21% in Q1.
The American Carbon Registry (ACR) led all registries in new credit issuance, overtaking both Gold Standard and Verra for the first time.
With rising demand for integrity and increasing regulatory alignment, the carbon market is entering a new era—one defined by quality, credibility, and a growing convergence between voluntary and compliance markets.
