Investment Trends and Outcomes in the Global Carbon-Credit Market

In an update to last year’s report, we present an analysis of capital flows in the global voluntary carbon-credit market, taking into consideration both publicly announced raises and commitments of capital and capital expenditure at a project level.

Key findings include:

Capital expenditure: Between 2013 and 2023, almost USD 42 billion was spent on the origination and development of almost 12,000 registered and pre-registered carbon-credit projects globally, with nature-based projects accounting for more than half of the total spend.

Capital raised and commitments: Between 2021 and Q3 2024, around USD 43 billion has been committed or directly raised to invest in carbon-credit activities, with the majority going into carbon-removal projects, including nature and engineered projects, as highlighted in the exhibit. 2024 looks set to be a record year, with USD 14 billion having already been raised or committed by the end of Q3 2024.

Carbon-credit projects come with multiple benefits. While they can naturally help protect the climate, nature and biodiversity, many of these projects also support the UN’s other sustainable development goals such as affordable clean energy, sanitation and economic growth. They also support jobs — our analysis of REDD+ and ARR projects shows that on average each of these projects created jobs for around 100 people, with some larger projects reporting new employment into the thousands.

Capital raises and commitments for carbon projects by project type 

Data as of Sept. 30, 2024. Source: MSCI Carbon Markets