The global carbon market is a broad system that facilitates the trading of carbon credits to help reduce global greenhouse gas emissions. It includes both compliance carbon markets — regulated by governments — and voluntary carbon markets, where entities purchase credits to compensate for emissions on their own accord. These markets are critical in the global effort to fight against environmental instability and represent one of the fastest-growing areas of sustainable finance.
The compliance carbon market is government-regulated and includes cap-and-trade systems where emission allowances are allocated or auctioned. Participants are legally obligated to comply with emission limits.
In contrast, the voluntary carbon market functions without regulatory requirements, giving buyers more flexibility but also creating variability in credit quality and pricing. Furthermore, initiatives like the ICVCM and CORSIA are helping to standardize the carbon market exchange, improving trust and market performance.
The voluntary carbon market (VCM) allows companies, institutions, and individuals to purchase carbon credits to offset emissions without being mandated by law. Participants in this market often aim to meet corporate sustainability goals, contribute to nature restoration, or prepare for future regulations. The voluntary carbon market price varies depending on credit quality, project type, and verification status.
This market plays a vital role in funding environmental projects like reforestation, carbon capture, and energy efficiency. As demand increases, the carbon capture market and other innovative compensating solutions are gaining momentum.
Discover more: 3 trends of the voluntary carbon market size
Understanding how the carbon market works is key to grasping its impact. In both voluntary and compliance markets, companies purchase carbon credits representing the reduction or removal of one metric ton of CO₂. These credits are generated through projects that capture, avoid, or reduce greenhouse gas emissions.
Credits are traded through brokers, carbon market exchanges, or directly between buyers and sellers. Prices depend on verification status, credit quality, and the type of project (e.g., reforestation vs. direct air capture). As awareness grows, carbon market jobs and investment opportunities are expanding globally.
Discover more: The rise of carbon markets: A new frontier in sustainable investing
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.
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.
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:
The carbon market price is expected to rise further, making it an attractive asset for investors. Initiatives like the Corporate Sustainability Reporting Directive (CSRD) in the EU are further propelling demand.
Discover more: Trump's 7 new policies: what they could mean for the voluntary carbon market
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:
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.
Discover more: Why carbon credit prices will rise?
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:
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.
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:
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.
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:
For investors, this presents an unprecedented opportunity to enter the market at a pivotal moment — before carbon credits become a fully mature asset class.
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.
Discover more: Top 10 long-term investments
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.
Want to learn more about investing in the voluntary carbon market? 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.