Carbon Markets 18 January 2023

Voluntary Carbon Market 2022 Overview

Take a look at how the voluntary carbon market has evolved over 2022 in our yearly overview. This deck includes trends, records, and insights from a complete overview of 2022 data, powered by the Climate Focus VCM Dashboard.

Highlights from 2022 include:

Issuance of carbon credits dropped by 21% in 2022 to 279 Mt, compared to 2021, triggered by uncertainty about global economic outlook.
Renewable Energy overtook Nature-based solutions to become the leading category of credit issuances. Combined, these two categories represented two-thirds of issuances in 2022.
Although still larger in absolute terms, annual issuances from avoided emissions from nature-based projects decreased faster than those of removals from 2022 compared to 2021.
Retirements of carbon credits declined only slightly in 2022 against 2021, reaching 156 Mt. While forward buying may have slowed down somewhat, companies continued to use a similar number of offsets as last year.
Non-retired volumes increased steadily through 2022, reaching 683 Mt as overall annual issuance exceeded retirement levels by 123 Mt.
Despite an overall drop in issuance levels, some project types witnessed increased issuances in 2022. Issuances from energy efficiency, industrial gases and coal mine methane projects were up 30%, 267%, and 212% respectively.

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Files

Download PDF VCM-Dashboard-2022-Overview-1.pdf

Authors

Szymon Mikolajczyk

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