1.5B Tons Of Carbon Credits Demand By 2030
AlliedOffsets, a prominent data and technology company holding the world’s most extensive aggregated data for carbon offsetting, has unveiled the 2023 VCM Forecast Report. This comprehensive analysis navigates the voluntary carbon market’s (VCM) future, offering crucial insights into supply, demand, and price dynamics.
The report projects a significant surge in demand for carbon credits, estimating up to 1.5 billion metric tons by the year 2030. This demand is expected to be primarily driven by existing corporate buyers engaged in carbon offsetting initiatives. Examining issuance trends, the report suggests that the carbon credits supply could reach up to 600 million metric tons by the same timeframe.
While providing a snapshot of the current VCM landscape, the report envisions substantial long-term growth for the market. However, this growth depends on the industry’s ability to address quality concerns and enhance trust. The report underscores the importance of creating a robust framework that fosters confidence in the voluntary carbon market.
The report sheds light on the ongoing activity levels within the VCM, focusing on the retirement of carbon offset credits in 2023. AlliedOffsets’ analysis reveals that approximately 150 million tons of CO2e have been retired across 21 registries through the end of October—a figure 20% below the retirements for the same period in 2022.
Industry Insights: Record Credit Requirement Volumes and Growing Significance of Removal Credits
Despite a slight decline in overall retirements, specific projects within US registries have witnessed record credit requirement volumes. The report also highlights a notable uptick in retirements of removal credits, underscoring their growing significance in the voluntary carbon market landscape.
As the VCM continues to evolve, AlliedOffsets’ 2023 VCM Forecast Report provides valuable insights for stakeholders navigating this dynamic landscape. The anticipation of substantial demand growth and identifying key trends contribute to a comprehensive understanding of the forces shaping the future of the voluntary carbon market.
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