Funding activity for the voluntary carbon market (VCM) hit US$16.3 billion in 2024, 18 times higher than the value of all carbon credit retirements last year, according to analysis by carbon market solutions provider Abatable. Out of the US$16.3 billion of funding announced in 2024, US$7.8 billon (48%) was allocated to nature-based climate mitigation solutions, including carbon avoidance and carbon removal projects, while engineered carbon dioxide removal accounted for US$5.9 billion (38%) worth of deals. “The sustained levels of funding in 2024 clearly show the continuing strategic significance of long-term engagements in carbon credit projects, and underscores the enduring commitment of corporate buyers and large investors to the VCM,” said Valerio Magliulo, CEO and Co-founder at Abatable. “This funding activity and the shift from both suppliers and buyers towards high integrity shows a VCM laying fresh foundations for enduring transformation, and highlights the importance of carbon markets as a critical lever for climate action.” Last month, projections by data and research provider MSCI estimated that the global carbon credit market is set to grow at least fivefold by 2030 after a period of stagnation. The Abatable report credited the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) with creating 28% additional demand for carbon credits, but added that a lack of CORSIA-eligible credit supply means suppliers will need to transition fast to match the expected demand under the scheme. In the next few weeks, Abatable plans to release comprehensive CORSIA supply and demand modelling tools.
