· 3 min read
AlliedOffsets has released its latest mid-year report analysing buyer activity in the voluntary carbon market (VCM). The report reveals signs of growth, market maturity, and a diversification of the buyer base. Offtake agreements have surged and East Asia is seeing an increase in climate commitments and regulations.
Below is a summary of the report, full report can be downloaded here.
The report evaluates activity from January to June 2025, highlighting several major trends:
Retirements on the rise
112.9 million carbon credits were retired in H1 2025, which represents a 9% increase compared to the same period in 2024. Aside from January and June, every month saw higher retirements year-on-year.
The Financial Services sector remains the most active buyer (6.6%), followed by Energy (5.9%). February recorded the largest month-on-month increase in retirements at 40%.
Total buyers
There were over 5,800 unique buyers active in the market in 2025. The number of unique buyers has grown by an average of 28% compared to last year. While monthly activity hasn’t quite surpassed historic highs, March came close with 1,177 buyers, the second highest month on record after March 2024.
Project preferences
Forestry & Land Use (38%) and Renewables (29%) continue to dominate retirements. In the report, we also review the limited correlation between CCP-labeled projects and retirement volumes, which most likely is due to the low availability of eligible credits.
Net Zero Commitments and Pricing Trends
Companies with net zero targets retired over 28 million credits in the past year. SBTi-aligned firms paid a premium, averaging $7.25 per credit, compared to $4.49 for those without public commitments.
Top high-paying SBTi-committed buyers include Siemens, Coca-Cola, Zurich Insurance, Block Inc., and Swiss Re. In contrast, Waste Processing companies retired credits at the lowest average price of $1.90.
Regional highlights
• US Market: Despite political turbulence after Trump’s return to office and rollbacks of clean energy subsidies, demand for US-based projects remains resilient. Nature-based removals saw price spikes post-April, and buyers like NW Natural and Kyndryl show that regional engagement is far from dead.
• China and Taiwan: Chinese buyers are dipping in with surgical, small-scale retirements—often linked to product-specific neutrality claims. Taiwan’s story is different: regulatory drivers, including a new carbon fee and mandatory sustainability reports, are creating real compliance-adjacent demand. Expect more once international credits become eligible for up to 5% of obligations.
• Australia: More than 80% of Australian retirements in H1 2025 were linked to Climate Active certification. Mandatory sustainability disclosures and flexible certification timelines are supporting continued demand. According to Aurecon, some buyers are securing credits ahead of 2026 reporting deadlines.
Expectations for the Market
To support sellers in identifying future buyers of carbon credits, AlliedOffsets has developed a new ‘Likelihood to Buy’ metric designed to map potential demand in the carbon market, down to specific buyers that are likely to engage with the market in the coming months.
The full report can be accessed on AlliedOffsets. illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
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