Voluntary Carbon Offsets Market Size, Share, Growth, and Global Industry Analysis, by Type (Forestry, Renewable Energy, Waste Disposal, Others), By Application (Personal and Enterprise), Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Outlook, and Forecast From 2025 To 2034

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VOLUNTARY CARBON OFFSETS MARKET OVERVIEW

The Global Voluntary Carbon Offsets Market is projected to reach USD 1.07 billion in 2025, grow further to about USD 1.4 billion in 2026, and is anticipated to achieve nearly USD 13.1 billion by 2034, progressing at a CAGR of 31.2% during 2025–2034.

Voluntary carbon offsets (VCM) allow various establishments such as businesses, non-profit organizations, municipalities, universities, individuals, and other types of organizations to balance their carbon emissions. This creation of balance lets organizations to control their emissions done outside of their regulatory regime. Carbon offsets are measured in metric tons of carbon dioxide-equivalent (CO2e) and may represent six primary categories of greenhouse gases: carbon dioxide (CO2), sulfur hexafluoride (SF6). nitrous oxide (N2O), methane (CH4), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs).

The growing demand for voluntary carbon offsets is growing owing to the obligations organizations have to comply with towards Kyoto Protocol and liability under EU Emissions Trading Scheme.  is expected to drive the market growth. The rising demand for carbon offset is due to growing attention on greenhouse gases is expected to drive the market growth. Energy demands from numerous industries are projected to drive the market growth. Growing health awareness and medical concerns supported the growth for the market. Rising demand from project developers to create technological advancements to reduce greenhouse gas emissions.      

Key Findings

COVID-19 Impact

Cessation on Economic Activities to Propel Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with voluntary carbon offsets experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the voluntary carbon offsets market growth and demand returning to pre-pandemic levels once the pandemic is over. 

The effects of the COVID-19 pandemic are already being felt on a global level, the global bike locks market was significantly influenced. The outbreak of COVID-19 had a negative impact on several markets. Various countries went into lockdown. With sudden pandemic, all kinds of businesses observed disruptions. Various countries went into lockdown. With sudden pandemic, all kinds of businesses observed disruptions. With many restrictions in the pandemic there was less carbon and gas emissions, hence, there was a reduction in demand for carbon footprint management solutions. However, stringent rules and regulations led to reduction in carbon footprints which positively affected the environment. Stringent rules and regulations led to lockdowns, social distancing, and halting of operation activities which led to reduced greenhouse gases. The demand for voluntary carbon offsets was resumed owing to resuming in the economic activities.

LATEST TRENDS

Integration of Various Technologies to Enable Market Progress

The global voluntary carbon offsets market growth is anticipated to boost owing to integration of technology. Technology plays a major role in the generation of offset projects. It helps in digital transaction of carbon credits and visual display of the positive impacts from carbon finance. Project developers create and monetize carbon credits from various activities for climate solutions such as afforestation and forest conservation. Interest in carbon offset credits generated from engineered removal technologies.  Such new technologies to generate new carbon credits are expected to pose an opportunity for market growth during the forecast period.

• In H1 2025, voluntary carbon credit retirements surged to 95 million metric tons, marking the highest half-year volume recorded to date.

• Between 2010 and 2022, India supplied 278 million carbon credits, representing about 17% of global voluntary supply.

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VOLUNTARY CARBON OFFSETS MARKET SEGMENTATION

• By Type

Based on type; the market is divided into forestry, renewable energy, waste disposal, and others.

Forestry is the largest part of the type segment.

• By Application

Based on application; the market is divided into personal and enterprise.

Enterprise is the largest part of the application segment.

DRIVING FACTORS

Aim to Reduce Greenhouse Gas Emissions to Boost Market Development

The global voluntary carbon offsets market growth is estimated to increase with the aim to reduce greenhouse gas (GHG) emissions. One of the main aims to create VCM is to create financial support for activities that reduce greenhouse gas emissions. With time, VCM has been able to create means and tackle climate change in effective ways. It has enabled companies to complete and achieve climate goals by letting them to reduce internal emission reductions which is expected to drive the market growth. They help companies to use new approaches and techniques to curb climate change with technological innovations. Carbon offsets offered by companies as an up-sell during the sales process so that customers can lessen the emissions associated with their product or service purchase. Such initiatives are expected to drive the market voluntary carbon offsets growth.

Energy Requirements from Various Industries to Inflate Market Growth

The global voluntary carbon offsets market growth is anticipated to boost owing to its energy requirements from various industries. Industrial sector attributes for growing energy demands and consumption. Majority of the energy is consumed by manufacturing sectors of businesses and is also increasing rapidly. Coal-powered energy sources are used for the majority of energy requirements. Adoption of various carbon footprint management solutions is projected to drive the demand for voluntary carbon offsets.

• In 2024, corporations worldwide used carbon credits valued at USD 1.4 billion, just slightly below the 2022 peak of USD 1.7 billion.

• As of 2021, the volume traded in voluntary carbon markets was about 300 MtCO₂e, compared to 12 GtCO₂e in compliance markets, highlighting rising uptake in voluntary spaces.

RESTRAINING FACTORS

High Investments to Hamper Market Growth

There are a number of factors that can push the growth of the voluntary carbon offsets market. Restraining factors such as high cost of initial investment and lack of preparation to start new market mechanisms. Such high costs of investments limits companies to voluntarily take up carbon offsetting solutions. Such factors are anticipated to restrict and limit the market growth.

• Voluntary carbon markets shrank from USD 2.1 billion in 2021 to USD 535 million in 2024, representing a decline of nearly 75% in overall market activity.

• Persistent concerns such as insufficient transparency and questionable credit quality undermine market integrity, with around 40% of projects flagged for credibility issues by independent assessments.

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VOLUNTARY CARBON OFFSETS MARKET REGIONAL INSIGHTS

Europe to Govern Market Owing to Voluntary Actions for Carbon Offsetting

Europe holds the largest part of the global voluntary carbon offsets market share due to voluntary actions to curb carbon offsets in the region. Minimization of global warming by controlling carbon emissions is expected to drive the market growth. Rise in carbon footprint management solutions during the forecast period is predicted to support the demand. Rising demand from commercial, residential, and industrial consumers are expected to drive the market share. Governments of the region and international organizations have set the target to limit the global temperature and provide solutions for climate change which is expected to propel the growth for voluntary carbon offsets.

KEY INDUSTRY PLAYERS

Market Players to Boost Market Growth

The report delivers information about the list of market players and their operations in the industry. The information is collected and reported with proper research, technological developments, acquisitions, mergers, expanding production lines, and partnerships. Other aspects examined for this market include companies producing and introducing new products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

• Microsoft purchased approximately 80% of all technology-based carbon removal credits to date—including 92% of such credits in H1 2025—representing around 84% of the total technology-based carbon removal market value (USD 8 billion out of USD 9.5 billion).

• Major certification registries like Verra and Cercarbono are under scrutiny: in Brazil, projects listed with them were tied to illegal deforestation fines affecting about 67% of registered projects, raising concerns about registry integrity.

List Of Top Voluntary Carbon Offsets Companies

• South Pole Group
• 3Degrees
• EcoAct
• Terrapass
• Green Mountain Energy
• First Climate Markets AG
• ClimatePartner GmbH
• Aera Group
• Forliance
• Element Markets
• Bluesource
• Allcot Group
• Swiss Climate
• Schneider
• NatureOffice GmbH
• Planetly
• GreenTrees
• Bischoff & Ditze Energy GmbH
• NativeEnergy
• Carbon Credit Capital
• UPM Umwelt-Projekt-Management GmbH
• CBEEX
• Bioassets
• Biofílica 

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.