Voluntary Carbon Market

Prices, demand, supply and credit quality: the operational guide for companies that want to offset without greenwashing.

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VCM · Buyer Guide · Prices · MRV · Credit Quality

What you will find in this guide

  • How the voluntary market works and how it differs from EU ETS
  • What drives prices and how to interpret demand signals
  • How to evaluate quality, methodology and additionality of a credit
  • The role of standards (ICVCM/CCP) in selecting suppliers
  • How to structure a purchase: spot vs offtake, due diligence, registry
In this guide
What is the VCMPrices and demandQuality and selectionFAQLatest articles

What is the voluntary carbon market

The Voluntary Carbon Market (VCM) is the system through which companies, governments and individuals purchase carbon credits to voluntarily offset their emissions. Unlike the EU ETS, the mandatory European CO₂ allowance market, the VCM is not regulated by national laws but by private standards such as Verra (VCS), Gold Standard and ICVCM.

Buyers are predominantly companies with net-zero commitments, ESG funds and large corporations subject to stakeholder pressure. Sellers are project developers: entities that develop forestry, renewable energy, agricultural carbon capture or technological projects.

  • One carbon credit equals 1 tonne of CO₂ equivalent reduced or removed from the atmosphere
  • Main types: avoidance (emissions prevented) and removal (CO₂ actively removed)
  • Main standards: Verra/VCS, Gold Standard, ICVCM/CCP, American Carbon Registry
  • Possible claims: carbon neutral, net-zero, beyond value chain mitigation (BVCM)
Per chi compra
  • A company buys credits to offset residual emissions it cannot reduce internally, to meet SBTi or net-zero commitments, or to credibly communicate its climate strategy
  • Reputational risks are real: low-quality credits expose companies to greenwashing. Always verify additionality, methodology and audit standards
  • What to communicate: not 'we are carbon neutral' but 'we have reduced X% of our emissions and offset the residual with credits certified by [standard] and verified by [audit body]'
Best articles
Voluntary Carbon Market in 2026: Current State, Challenges, and Opportunities for Companies Looking to Offset (Without Greenwashing)
What Is a Carbon Credit: The Lifecycle from Certification and Issuance to Registry and Retirement (Without Double Counting)
Carbon Credit Regulations 2026: What Changes Between the EU ETS, the Voluntary Market, and the New ICVCM Standards

Prices, demand and market signals

Prices in the VCM are not as transparent as a regulated market: they vary enormously based on type, standard, vintage (year of issuance), geography and project quality. Removal credits (such as DACCS or soil carbon) typically cost 10-20x avoidance forestry credits.

Demand is driven by large corporate buyers, Microsoft, Google, Meta, and sustainability funds. The movements of these actors drive prices in premium segments. Offtake agreements (multi-year forward contracts) offer price stability in exchange for volume commitment.

  • Quality spread: avoidance forestry credits from $3-8/tCO₂, technological removal from $100-500/tCO₂
  • Forward vs spot: offtakes lock in future volumes at prices agreed today, protecting against price increases
  • Sovereign risk: projects in unstable countries carry a permanence risk premium
  • Vintage premium: recent credits (last 2-3 years) typically carry a premium over older ones
Per chi compra
  • To read market prices, consult benchmarks such as OPIS, Xpansiv CBL or Sylvera. Do not rely solely on the supplier's price
  • It makes sense to lock in volumes when increased demand is anticipated or supply needs to be secured for future claims
  • Beware of 'discounts': prices well below the market benchmark are often the first sign of low quality or credits already sold elsewhere
Best articles
EU ETS Prices 2026: Analysis of the CO2 Allowance Market Amid Reforms, Industrial Demand, and Price Scenarios
Microsoft and 1.8 Million Carbon Credits in Africa: What It Means for Rainforests and the Voluntary Market
Avoidance vs. Removal Carbon Credits: Differences in Price, Reliability, and Claims—How to Choose the Right Type for Your Budget and Communications

Quality, selection and due diligence

Not all carbon credits are equal. Quality depends on the robustness of the methodology used to calculate reductions, the strength of the MRV (Monitoring, Reporting, Verification) system and the project's ability to guarantee permanence over time.

The ICVCM (Integrity Council for the Voluntary Carbon Market) has introduced Core Carbon Principles (CCP): a second-level certification that is added to existing standards to guarantee a minimum level of integrity. CCP-approved credits are the reference point for high-quality purchases.

  • Additionality: reductions must be 'additional' to what would have occurred without the project
  • Permanence: for forestry projects, the risk of future release (fires, deforestation) must be managed with buffer pools
  • Leakage: the project must not shift emissions elsewhere (e.g. deforestation moving to adjacent areas)
  • Baseline: the calculation of avoided emissions depends on the reference baseline — the more conservative it is, the more reliable the credit
  • Audit standard: verify who certifies the project and how frequently reviews take place
  • Registry: the credit must be registered in a public registry (Verra, Gold Standard, ACR) with a traceable serial number
Per chi compra
  • Practical checklist: always ask for standard + methodology ID + audit body + registry serial number + vintage
  • Red flag: supplier that does not provide project documentation, credits without a specified vintage, prices well below benchmark
  • What to ask the supplier: is it CCP-approved? Is the project in a country with an Article 6 corresponding adjustment? Can I see the registry?
Best articles
ICVCM Core Carbon Principles and Voluntary Credits: A Practical Checklist for Choosing “High-Integrity” Credits
How to Buy Carbon Credits: A Practical Workflow from GHG Inventory and Strategy to Broker Due Diligence and Registry Retirement
Verra, Gold Standard, ACR and ICVCM: Comparing Carbon Credit Standards and Registries to Choose What to Buy

FAQ

What is the difference between carbon credits and EU ETS allowances?
EU ETS allowances (European Union Allowances, EUA) are mandatory emission permits for European industries included in the cap-and-trade system: those who emit beyond the limit must purchase allowances. VCM carbon credits are voluntary instruments, generated by projects that reduce or remove CO₂ outside the mandatory system. The two markets have entirely different prices, standards and purposes: EUAs trade around €60-70/t, while VCM credits range from $3 to $500+ depending on type.
How is the price of a carbon credit in the VCM determined?
The price depends on several factors: type (avoidance vs removal), certification standard, vintage (year of generation), project geography, level of co-benefits (biodiversity, local communities) and current market demand. There is no single price: OTC (over-the-counter) markets set bilateral prices, while platforms like Xpansiv CBL offer spot prices on standardised contracts. CCP-approved credits tend to carry a premium over non-ICVCM-certified credits.
How do I verify that a credit has not been counted twice?
The risk of double counting exists both on-chain and off-chain. For traditional credits, verify that the credit's serial number is present in the registry (Verra, Gold Standard, ACR) and that it shows as 'retired' after purchase, not simply issued or transferred. For tokenised credits, verify that the bridging protocol has retired the original credit in the registry before issuing it on-chain. A credit retired in two places is fraud, not a market feature.
What does 'removal' vs 'avoidance' mean and why does it matter for my claim?
Avoidance credits represent prevented emissions (e.g. protecting a forest that would have been cut down). Removal credits represent CO₂ physically removed from the atmosphere (e.g. reforestation, biochar, DACCS). For robust net-zero claims aligned with SBTi, VCMI or GHG Protocol, removal credits carry more weight because they actually neutralise the CO₂ emitted. Avoidance is more controversial because 'avoided' emissions depend on counterfactual scenarios that are difficult to verify.
How many credits do I need to buy to offset my company's emissions?
The starting point is a complete GHG inventory (Scope 1, 2 and ideally Scope 3). The number of credits needed corresponds to the tonnes of CO₂e emitted that you want to offset. Before buying, it is essential to reduce emissions as much as possible: quality standards (VCMI, SBTi) require real reductions before credits can be used for claims. In practice, the VCM is suitable for offsetting the 'irreducible residual', not as an alternative to decarbonisation.

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