2024: Carbon credit markets in review
2024 was a year characterised by several highly significant policy developments that will shape the global market for carbon credits over the coming years - most notably the breakthrough on Article 6 achieved at COP29.
The key market indicators of carbon credit retirement and issuance volume in 2024 show the VCM continuing its post-2021 trend of relatively flat retirements and slowly declining issuances, though 2024 does represent the record year for retirements.
Analysis of retirements and credit prices against BeZero Carbon ratings in 2024 indicates that buyers’ preference for higher quality credits continues to grow stronger, with the average price premium for each notch on the BeZero Carbon rating scale reaching 40%.
Contents
Key statistics
Introduction
2024 was characterised by a number of highly significant developments in policy and market-led initiatives
Article 6 markets were greenlit for full operationalisation at COP29
Several governments made announcements in support of the VCM in 2024
Market-led integrity initiatives reached key milestones
Compliance schemes and domestic crediting mechanisms evolved
VCM credit retirements continued to plateau in 2024
The number of companies with disclosed credit retirements fell in 2024
On the supply-side, issuances continued their downwards trend in 2024
BeZero Carbon’s coverage of rated projects continued to expand and evolve in 2024
Retirement data suggests that buyers have developed a stronger preference for higher quality, higher rated credits
The relationship between BeZero Carbon Ratings and price strengthened in 2024
Conclusion - what to look out for in 2025