Carbon credit market growth is uneven

Demand preferences and buyers’ needs continue to incentivize a spectrum of alternatives for carbon credits with differentiated prices across project types, geographies, and geographies. A highlight this year is the increased interest in forest and land use-based credits.

Carbon credit prices continue to vary across different types of credits. The market for credits from independent crediting mechanisms is heterogeneous, with buyers placing a range of values on characteristics such as the sector (e.g., type of activity), geography, age/vintage, and co-benefits of credits. While recent years have seen some moves toward offering standardized contracts, prices still vary widely, with trading platforms offering contracts representing credits from different sectors.

Fig. 10: Multilayered purchaser decisions shape diverse markets and prices

Fig. 11: Prices of standardised carbon credit contracts