VCM Reaches $2 Billion in 2021: New Market Analysis Published on Ecosystem Marketplace
August 03, 2022 | 2021 has been a historic and record year for voluntary carbon markets, and 2022 has kicked off at a blistering pace. With VCM now hovering around the $2 billion mark, this highly anticipated The state of voluntary carbon markets 2022 Q3 briefing, “The Art of Integrity”.
The briefing offers a synthesis of the richness of MI all EM respondents reported VCM carbon credit trade data for 2021 (and updates to 2020), a 6x increase in annual market data from 2019.
VCM has grown in value to reach $2 billion in 2021. This quadrupling in market value from 2020, and the double of our last market update during COP26, was driven by an acceleration in nature-based solutions trading volume and higher prices for these and other projects with non-carbon environmental and social benefits, such as cookstoves and water purification devices.
From developers to investors and buyers, VCM data interests are becoming increasingly granular. Over the past few months, EM has been busy investing in upgrades to its data systems and analytical tools, applying new QAQC practices to data, and updating its project typology and category classifications. to capture the astonishing diversity of +170 project credit types from nearly 100 countries reported transactions to us in 2020-2021.
“Quality” and “integrity” are currently buzzwords in voluntary carbon markets. Our position has always been that transparency is fundamental to high quality, high integrity markets. As markets grow larger and more complex, our goal is to ensure that markets have real climate impact, that high-quality projects are priced and valued accordingly, and that climate action actors of companies include their full range of options.
EM’s work is accelerating and collaboration is essential. With new initiatives, such as the ICVCM and VCMI offering guidance and principles of integrity, and the global bullish outlook of the VCM creating the wind at our backs, EM is humbly leaning into its increasingly critical role in as a neutral and independent non-profit initiative driving end-to-end transparency of trading in what remains a still largely disaggregated OTC market.
We look forward to working with our growing global network of EM Respondents, Visionary Partners, Strategic Supporters, Data Partners and new collaborators to continue to expand and strengthen our credit sales coverage of project developers and intermediaries. .
Stay tuned for our next briefing on the state of VCM, as EM respondents are currently reporting data from 2022. More up-to-date, in-depth, and cross-sectional data will be released in September during Climate Week NYC.