June 19, 2019, 11:45 pm
June 2011 Carbon Update: News from the Voluntary Market

In June Ecosystem Marketplace and Bloomberg New Energy Finance released their 5th annual analysis of the global voluntary market, “Back to the Future, State of the Voluntary Carbon Markets 2011.”  Findings in this report were based on survey data voluntarily reported by offset suppliers, exchanges, and registries.  The study found that 131.2 MtCO2e (131.2 million metric tons of carbon dioxide equivalent, or 131.2 million carbon credits) transacted in 2010, compared to 98 MtCO2e in 2009, or 34% growth.  The Chicago Climate Exchange (CCX) closed its doors in 2010, resulting in the majority of transactions shifting to over-the-counter (OTC, 127.9 MtCO2e, or 97% of global market share).  In 2010, the volume-weighted price of voluntary credits fell to $6/tCO2e from $6.5/tCO2e in 2009.  Using volume of transactions in 2010, the estimated value of global voluntary market to be at least $424 million, which is an increase from 2009 ($415 million) due to greater volume in 2010.  Land based projects supplied largest volume of credits, with 46% of the OTC market share.  Forestry projects, such as REDD (reduced emissions from deforestation and forest degradation, or Avoided Conversion forestry), improved forest management, and reforestation comprised 32% of the voluntary market.  Over half of the credits transacted OTC for which suppliers reported a project location were sources from developing countries, while 35% reported project sources from the US.  The Verified Carbon Standard (VCS) generated the most credits among the third-party standards in 2010, with 34% of the market share.  Climate, Community and Biodiversity Standard (CCB) and the Climate Action Reserve (CAR) took second and third ranks with 19% and 16% of the market share, respectively.  When asked to estimate the overall market performance in 2010 and beyond, suppliers forecasted substantial growth in the voluntary market in 2011.

If you would like to learn more about the voluntary carbon market, please don’t hesitate to contact us.  If you would like to read the full 93-page report “Back to the Future, State of the Voluntary Carbon Markets 2011,” it can be found at the Ecosystem Marketplace website http://www.ecosystemmarketplace.com.