Voluntary Carbon Market Sees Second Year of Decline

The international non-profit organization "Ecosystem Marketplace," known for analyzing market trends for carbon units, has released its annual report detailing the state of the global voluntary carbon market. According to the report, the total volume of transactions within this sector fell by 56% in 2023, with the overall value plummeting to just $723 million USD—a decline of 61% compared to 2022.

The most substantial reductions were observed in the forestry and land use sectors and in renewable energy, with decreases of 4% and 7% respectively. Although obtaining carbon units in these areas is generally less complex than in other projects, analysts have noted tightening regulatory procedures. Furthermore, REDD+, one of the most favored types of carbon credits within nature-based solutions, experienced a significant drop in value, decreasing by 62% from the previous year.

Analysts point to adverse media coverage as a primary factor contributing to the downturn of the voluntary carbon market in 2023. Negative press has questioned the integrity of both the issuers of carbon credits and their corporate purchasers, accusing the system of engaging in "greenwashing."

Despite these challenging figures from 2023, Igor Akhmerov, CEO of AIM Carbon, remains optimistic about the potential for growth within the voluntary carbon market, given the ongoing urgency of climate change issues: 

"We must clearly understand that global temperatures continue to rise, and thus, climate issues remain at the forefront. The implementation of climate projects and the acquisition of carbon units are among the most viable commercial solutions available today. Just as in any industry, there are high-quality assets and lower-quality assets, each of which garners different values over time," emphasized Akhmerov.