First Half 2025 VCM Review and Outlook

As we reach the half-year mark, it is once again time to reflect on the performance of the Voluntary Carbon Market, emerging trends, and implications for future developments.

Some of the key findings of the First Half 2025 Review and Outlook report include:

• Retirements on the rise: Retirements of carbon credits increased by 7 percent compared to the same period last year. Combined with a slowdown in growth of the carbon credit surplus, this marks a positive shift in the supply-demand balance.
• Core Carbon Principles (CCP) labelling starts to shape supply: Over 120 of the new publication listings relate to activities using ICVCM-approved methodologies. Carbon credit supply is increasingly dominated by new vintages, indicating strong buyer preference for newer vintages.
• Compliance buying gains momentum: Market activity is being impacted by premium pricing commanded by some compliance-grade credits, including CORSIA Phase 1. We also observe a rise in the share of domestic retirements associated with national carbon tax schemes.
• Article 6 unlocks new routes to market: Nine activities have completed the transition to PACM, while eight new bilateral agreements have been signed by buying countries Singapore, South Korea, and Switzerland.

As always, the data presented in our VCM Review and Outlook report is powered by the Climate Focus VCM Dashboard, offering near real-time insights into market activity.