3 Growth trends for the voluntary carbon market in 2025
The voluntary carbon market is experiencing unprecedented growth, attracting $16.3 billion in funding in 2024. As the world races toward net-zero targets, corporations are turning to carbon credits as a vital tool for offsetting emissions, driving a surge in demand for high-quality carbon removal projects.
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A new report from Abatable reveals three critical trends that will shape the voluntary carbon market in 2025: rapid market growth, a significant shift toward verified carbon removal credits, and the growing influence of Fortune 500 companies in setting the standard for smaller businesses. With more than 50,000 companies now required to report on sustainability, the market is poised for continued expansion, creating compelling investment opportunities.
In this article, we break down 3 growth trends for the voluntary carbon market in 2025, examine the major players leading the charge, and explore why investing in carbon credits through Vanderstyn’s Green Carbon Fund offers a rare opportunity for accredited investors to tap into this high-growth market.
1. The voluntary carbon market has grown eightfold in three years — and it’s not slowing down
The voluntary carbon market has evolved from a niche sustainability tool into a booming global market. In 2021, the market was valued at just $2 billion. By 2024, that figure had grown eightfold to reach $16.3 billion, according to the latest industry analysis. This exponential expansion is fueled by:
- Corporate net-zero commitments – Thousands of companies are using carbon credits to meet ambitious sustainability goals.
- Stronger climate regulations – Governments worldwide are introducing stricter carbon reporting and offsetting requirements.
- Increased scrutiny on carbon offset quality – Businesses are prioritizing high-quality, permanent carbon removals over avoidance credits.
- The rise of institutional investors – Carbon credits are now viewed as a valuable asset class with strong long-term returns.
The growth of the market has also been accelerated by initiatives such as the Corporate Sustainability Reporting Directive (CSRD) in the EU, which requires thousands of companies to disclose their environmental impact. With reporting obligations increasing, more firms are expected to purchase carbon credits, further driving demand.
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2. High-quality carbon removal credits surge by 75% — signaling a major market shift
According to Abatable’s latest report, 2024 marks a turning point in how corporations approach carbon credit investments. In the past, many businesses relied on avoidance credits, which fund projects that prevent emissions (such as forest conservation). However, companies are now transitioning toward carbon removal credits, which actively capture CO₂ from the atmosphere.
Key takeaways from Abatable’s research:
- Nature-based removals (such as reforestation and soil carbon sequestration) are gaining traction due to their scalability.
- Technological carbon removals (such as direct air capture) are emerging but remain expensive.
- Corporate buyers are increasing their due diligence to ensure their offsets align with long-term sustainability goals.
- Carbon removal credits are now the preferred option for corporations seeking high-integrity offsets.
With growing scrutiny on carbon markets, businesses are prioritizing verified, high-quality credits over lower-cost, avoidance-based offsets. This shift reflects a commitment to real and measurable impact, ensuring that purchased credits align with long-term sustainability objectives rather than serving as a simple compliance mechanism.
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This trend is evident in the increasing proportion of high-quality credits in the market. In 2021, only 29% of all retired carbon credits met high-integrity standards. By 2024, that number had risen to 50%, reflecting a 75% increase in just three years.In 2024, 50% of all retired credits met stringent quality standards, a significant rise from just 29% in 2021. The following table provides a closer look at the rising adoption of verified, high-integrity offsets:
Carbon credit retirement volumes and percentage of retirements aligned to high-integrity initiatives - 2019-2024. Source: Abatable
This shift is significant because high-quality removal credits are expected to see higher price appreciation than traditional avoidance credits. Companies looking for verified, long-term carbon storage solutions are willing to pay a premium, making these credits a prime investment opportunity.
3. Fortune 500 companies are setting the standard — and smaller companies are following
With demand at an all-time high, some of the world’s largest corporations are taking center stage in carbon credit purchases. Major tech giants, financial institutions, and even social media companies are actively securing high-quality offsets to meet their sustainability pledges. Here are 10 major companies investing heavily in carbon credits in 2024:
- Microsoft – Committed to becoming carbon-negative by 2030, Microsoft led the carbon credit purchases with 5.1 million tons in 2024 alone, focusing on durable carbon removals.
- Google – Expanding its carbon credit purchases to support both technological and nature-based removal projects.
- Meta – Investing in afforestation and ecosystem restoration to reduce its corporate carbon footprint.
- Amazon – Purchasing nature-based offsets as part of its Climate Pledge, aiming for net zero by 2040. Amazon and at least five other firms will support the rainforest conservation in the Brazilian state of Para, in a deal valued at around $180 million.
- Apple – Committed to becoming carbon-neutral across its supply chain by 2030, with a focus on high-quality removals.
- Netflix – Offsetting emissions from its global operations, particularly in media production.
- Disney – Using carbon credits to achieve emissions reductions across its theme parks and entertainment business.
- JPMorgan Chase – Integrating carbon credits into its ESG investment strategy.
- Salesforce – Investing in certified carbon projects to offset corporate emissions. Together with Google and Meta, they committed to purchase 20 million tons of nature-based carbon credits by 2030.
- TikTok – A new entrant in the carbon credit market, TikTok is now purchasing verified offsets to support its sustainability goals.
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According to industry data, more than 6,000 companies retired carbon credits in 2024, a sixfold increase from just five years ago. Additionally, with over 50,000 businesses now required to report their emissions and carbon footprint, the number of companies purchasing credits is expected to surge in the coming years.
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Why now is the best time to invest in carbon credits
The voluntary market is still in its growth phase, meaning there’s substantial room for price appreciation, as indicated by the 3 growth trends for the voluntary carbon market in 2025. Experts predict that:
- The price of high-quality carbon credits could double or triple by 2030.
- Carbon credit markets could surpass $100 billion annually within the next decade.
- The introduction of new regulatory frameworks will further tighten supply, increasing demand.
Analysts predict credit prices could rise to $50–$150 per tonne within the next decade.
For investors, this presents an unprecedented opportunity to enter the market at a pivotal moment — before carbon credits become a fully mature asset class.
The Green Carbon Fund: unlocking high-value carbon credit investments for individual investors
Historically, the carbon credit market was dominated by large corporations with the resources to navigate its complexities. Vanderstyn’s Green Carbon Fund is a carbon credit investment fund that changes this by providing accredited investors with direct access to high-quality carbon credit projects.
These projects are carefully selected for their potential to reduce greenhouse gas emissions and promote environmental sustainability. Once credits are issued, the Fund facilitates their sale, generating returns while driving meaningful and sustainable impact.
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Key benefits of the Green Carbon Fund
- Projected 22.5% annual returns
As global demand for carbon credits grows — driven by organizations striving for net-zero targets — the value of credits is expected to rise. The Green Carbon Fund positions investors to benefit from this upward trend, offering a dynamic, growth-oriented investment. - Cash flow payment
Enjoy an 11.25% annual cash flow return, paid quarterly over a 7-year investment period, providing consistent returns while benefiting from the long-term growth of the carbon credit market. - Diversified portfolio
The Fund mitigates risk by investing in a range of carbon projects across various locations and development stages. This approach ensures stability and reduces exposure to market fluctuations, enhancing long-term performance. - Exclusive access
By offering access to early-stage, high-quality projects, the Fund allows investors to benefit from the increasing value of carbon credits. With expert management handling regulatory complexities and project selection, investors can seamlessly enter this market. Additionally, the Fund’s structured approach eliminates the need for significant upfront capital, making it an attractive and accessible option for those looking to capitalize on the rise of sustainable investments. - Sustainability impact
Investing in the Green Carbon Fund directly supports global reforestation, carbon capture, and ecosystem restoration — aligning financial growth with environmental responsibility.
With the 3 growth trends for the voluntary carbon market in 2025 indicating exciting opportunities, the Green Carbon Fund is your gateway to one of the most promising investment opportunities on the market. With corporate demand for carbon credits at record highs, now is the time to secure your stake.
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Any further enquiries? Schedule a meeting with John Collins, our Fund Manager, to learn how Vanderstyn’s Green Carbon Fund can help you capitalize on this growing market.
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