REDD+ project developers still dominate market with 7 out of top 10 largest nature-based players developing these projects
The share of credits issued from the top 10 developers experienced a decline in 2023 as new, smaller players entered the market
More than 50% of credits that exist in the market today have been issued using methodologies currently submitted for CCP review, demonstrating an appetite to move towards a high-integrity market
LONDON, Feb. 27, 2024 /PRNewswire/ — 2023 proved to be a year of turbulence and transition for the voluntary carbon market (VCM). According to a new report published today by Abatable, the leading market intelligence and carbon procurement platform, the market finds itself at a pivotal juncture and this transition is paving the way towards a new era, one of flourishing investment in the primary market and substantial growth in issuance and projects across the top 25 developers.
Even with ongoing challenges faced by the REDD+ (Reducing Emissions from Deforestation and Forest Degradation) market, the study finds that there continues to be a dominance of REDD+ in the nature-based VCM arena, with 7 of the top 10 largest nature-based VCM project developers still actively engaged in REDD+ projects.
2023 also saw the market experiencing a number of demand and supply firsts. A record number of unique buyers retired credits for the first time – indicating growing interest and participation. On the supply side, the share of credits issued from the top 10 developers (in terms of issuances) has continued to decline, with smaller players entering the market.
With the much-anticipated publication of the Core Carbon Principles (CCPs) by the Integrity Council for the Voluntary Carbon Market last year, the report gives the first comprehensive assessment of potential alignment with this new quality benchmark. Of the credits issued in the market today, more than 50% were issued under methodologies that are currently submitted for CCP review, demonstrating an appetite to move towards a high-integrity market.
Commenting on the findings, Maria Eugenia Filmanovic, Co-Founder of Abatable said, “Our latest report provides valuable insights into the evolving landscape of the voluntary carbon market, which is at a pivotal moment as it starts moving at two speeds. While we have seen significant growth and interest in carbon credit initiatives and early indications show a move towards greater market integrity, challenges remain as we navigate the implications of the forthcoming Core Carbon Principles. It is essential for stakeholders to stay informed and proactive in addressing these challenges to ensure the continued effectiveness of the VCM.”
For further information on Abatable and its service offering, go to abatable.com.
About Abatable
Abatable is a market intelligence and carbon procurement platform enabling climate action for hard-to-abate emissions. Our services connect climate-conscious businesses, investors and innovative climate projects. We help organisations discover, assess and purchase carbon credits in order to achieve their sustainability strategies.
Our products and market insights bring radical transparency to the voluntary carbon market and build the trust it requires to become a scaled solution to tackle climate change. We are on a mission to empower every organisation to build a thriving future for climate, nature and people.
SOURCE Abatable