Carbon offset credits price index

Carbon credits price December 2025 and outlook (see chart below)

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Carbon credits price index

This post is a summary of the Carbon credits price developments. The price developments of Carbon credits are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Carbon credits price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

The outlook for Carbon credits prices is generated from different inputs including:

• Very recent price developments of immediate cost drivers of Carbon credits prices
• Recent price developments of underlying feedstocks which drive the price of Carbon credits
• Market futures for both cost drives and feedstocks of Carbon credits prices
• Adjustment of current supply/demand imbalances in the Carbon credits market
• Longer term trends in likely demand conditions

What are Carbon Credits and What Are They Used For

Carbon credits are tradable certificates representing the reduction, avoidance, or removal of one metric ton of carbon dioxide or its equivalent in other greenhouse gases. They are used by companies, governments, and organizations to offset their emissions and meet regulatory requirements or voluntary sustainability goals. Essentially, buying carbon credits allows entities to compensate for emissions they cannot eliminate directly.

How Large is the Global Market for Carbon Credits

The global market for carbon credits has been growing rapidly in recent years. As of 2024, estimates suggest the market is valued at tens of billions of US dollars, with forecasts indicating continued expansion as climate policies tighten and corporate sustainability commitments increase. Voluntary carbon markets are also growing, complementing regulatory markets established under mechanisms like the EU Emissions Trading System (ETS).

How Does the Carbon Credits Market Work

The carbon credits market operates through the creation, certification, and trading of carbon credits. Projects that reduce emissions, such as renewable energy installations or reforestation initiatives, generate credits verified by third parties. Buyers, typically companies or governments, purchase these credits to offset their emissions. Trading can occur on exchanges or through over-the-counter agreements, with prices influenced by supply, demand, regulatory frameworks, and the perceived quality of the credits.