The market for voluntary carbon credits has been on a roll.
In 2021, it grew to $2 billion, quadrupling in a year. Boston Consulting Group, a management consulting firm, expects it to be worth somewhere between $10 billion and $40 billion by 2030. Carbon credits offer an easy way for businesses to amp up their green credentials and funnel much-needed finance into environmental projects, often in developing nations.
But prices and volume have fallen since the start of the year. Nature-based carbon offsets are now trading at $1.84, having fallen 60% since the start of the year. A tough macroeconomic environment has been blamed, as well as increased public and media scrutiny.