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Demand trends in the VCM: Moving towards quality

  • Joel Gould
    Senior Manager, Policy & Markets
  • Markets and Policy
  • Ratings

Here are some key takeaways

  • Growth in demand has returned to the VCM; December 2023 and January 2024 are first and sixth (respectively) in the list of the top months for retirements in market history.

  • If recent growth is maintained, our projection suggests that 2024 could top 250 million retirements for the first time, which would shatter the existing record for VCM retirements.

  • There is growing demand for credits with higher BeZero Carbon Ratings, and this demand is driving price dynamics.

Contents

  • December 2023 and January 2024 have been record-breaking months for VCM demand

  • Year-on-year growth in retirements has returned in recent months

  • If recent trends are maintained, 2024 could be a record-breaking year for the VCM

  • The proportion BeZero-rated credit retirements with higher ratings has grown considerably

  • The growing demand for higher-rated credits is driving price dynamics

  • Conclusion

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