Voluntary Carbon Market Surges as High-Quality Credits Hit Record Prices
The voluntary carbon market has witnessed a significant shift, with high-quality carbon credits reaching record prices in late 2025. This surge reflects a growing demand for real impact and measurable results from companies worldwide.
The market's growth is driven by nature-based and renewable energy credits, with carbon removal credits expected to expand even faster. Prices for afforestation, reforestation, and revegetation (ARR) credits have soared to $24 per tonne in September 2025, more than doubling from the start of the year. This increase is a testament to the stock market's valuation, which grew from $4.04 billion in 2024 and is projected to reach between $50-$100 billion by 2030.
Companies like Temasek's GenZero are investing heavily in carbon removal. Since 2022, they have backed 24 climate-related companies globally, aiming to achieve measurable CO2e impact goals by 2028. Major energy firms such as Saudi Aramco and Siemens Energy have also established direct air capture projects, indicating sector investment. The stock market saw a significant retirement of credits in Q3 2025, with 31.86 million tonnes, similar to the previous year's total. However, issuances fell to 63.2 million in Q3, down from 76.9 million in Q2, creating a tighter stock market.
The rise in high-quality carbon credit prices signals a maturing stock market focused on real impact and permanence. Forestry projects demonstrating co-benefits and permanence, like those by Pachama and Verra-certified projects, are in high demand. With 57% of retired credits in 2025 being BB grade or higher, up from 52% in 2024, the stock market's commitment to quality is evident. As companies like Temasek's GenZero invest in carbon removal, the future of the voluntary carbon stock market looks promising.
