Forest Trends’ ecosystem marketplace: state of the voluntary carbon markets 2023

Average voluntary carbon markets (VCM) credit prices in 2022 were higher than they have been in 15 years, while overall trade volumes dropped from a 2021 peak. While the volume of VCM credits traded dropped by 51 percent, the average price per credit skyrocketed, rising by 82 percent from $4.04 per ton in 2021 to $7.37 per ton in 2022. This price hike allowed the overall value of the VCM to hold relatively steady in 2022, at just under $ 2 billion. To date in 2023, the average credit price is down slightly form 2022, to $6.97 per ton. Credits connected to nature-based solutions were a primary driver of high market value. Nature-based projects, including Forestry and Land Use and Agriculture projects, made up almost half of the market share at 46 percent. From 2021 to 2022, the average price of these kings of credits increased by 75 percent and 14 percent, respectively. Credits from Agriculture projects also increased in volume by 283 percent.