From $1 to $100+: Breaking Down Carbon Credit Pricing in the Voluntary Market

When considering how to offset your company’s residual carbon emissions, you may quickly realize that verified carbon projects sell credits at vastly different prices—ranging from less than a dollar to hundreds of dollars per tonne.

At first glance, carbon credits may seem like a commodity. After all, a tonne is a tonne, right? This mindset often leads to the question: “If there’s no real difference, why pay more?” But if your goal is more than just brand reputation, marketing, or PR—if you truly want to drive meaningful climate impact—then understanding what drives these price variations is essential.

Why is Pricing Carbon Credits so Challenging?

A carbon credit represents one metric tonne of CO₂ (or an equivalent greenhouse gas) either removed from or prevented from entering the atmosphere. Companies use these credits to offset emissions from industrial activities, transportation, and other sources.

The voluntary carbon market (VCM) plays a key role in funding climate solutions by directing private capital into emission reduction and removal projects. Unlike traditional financial markets, the VCM isn't just about trade—it exists to support climate action and drive innovation in sustainability, ensuring a livable planet for future generations. 

One of the biggest challenges in pricing carbon credits is the lack of a universal mechanism that reflects the true cost of greenhouse gas emissions. Without a standardized carbon price, the market must determine value based on project attributes, demand, and broader economic factors.

Carbon Credit Prices: What You're Really Paying For

The cost of each tonne of CO₂ depends heavily on the methodology and technology behind it.

Simply put:

• Lower-cost carbon credits (less than $10 per tonne) typically come from mature, scalable technologies. These projects tend to:

  • Focus on carbon avoidance rather than carbon removal.

  • Require lower investment levels due to established methodologies.

    
    

• Higher-cost carbon credits (ranging from $20 to $500+ per tonne) often support projects with greater financing needs and more advanced technologies:

  • Focus on carbon removal or novel carbon mitigation/avoidance technologies.

  • In the case of carbon removal, higher costs may correlate with greater carbon durability, particularly for technology-based removal solutions.

  • Require significant upfront investment in research and development to scale innovation.

    
    

Understanding these factors ensures that your carbon credit purchases align with your sustainability goals—not just your budget!

Other Factors Influencing the Price of Carbon Credits in the Voluntary Carbon Market

Beyond the methodology and technology behind a carbon credit, several other factors shape its price in the voluntary carbon market. Understanding these elements can help buyers make informed decisions about their purchases and maximize their impact.

1. Market Trends & Perception of Carbon Credits

The voluntary carbon market is influenced by evolving perceptions of carbon credits. As companies, governments, and investors place increasing emphasis on sustainability and net-zero commitments, demand for high-integrity credits rises. Additionally, regulatory shifts, corporate pledges, and emerging standards—such as those set by initiatives like the Science-Based Targets Initiative (SBTi) and the Integrity Council for the Voluntary Carbon Market (ICVCM)—can create price fluctuations.

For example, as scrutiny over carbon offset quality grows, credits from projects with strong verification and impact (such as nature-based removals or direct air capture) may command higher prices. Conversely, if confidence in a particular type of credit diminishes (due to reports of low additionality or leakage concerns), its market price may drop.

2. Project Type (Avoidance, Reduction, or Removal)

The type of carbon project significantly affects pricing. Projects generally fall into three categories:

• Avoidance projects prevent future emissions but do not remove CO₂ already in the atmosphere. Examples include renewable energy projects replacing fossil fuels or initiatives that prevent deforestation (e.g., REDD+).

• Reduction projects lower emissions from existing activities, such as methane capture from landfills or industrial efficiency improvements.

• Removal projects actively extract CO₂ from the atmosphere through nature-based solutions (e.g., reforestation, soil carbon sequestration) or technology-based approaches (e.g., direct air capture with storage).

Pricing across these categories is influenced by factors such as scalability, technological maturity, project complexity, and the reliability of carbon mitigation and removal claims. Validation and verification methods—such as digital Monitoring, Reporting, and Verification (dMRV)—also play a key role in price differentiation. Generally, carbon removal projects command the highest prices due to their advanced technology and high development costs.

3. Co-Benefits & Contribution to the Sustainable Development Goals (SDGs)

Beyond carbon reduction or removal, many projects provide additional social, economic, and environmental benefits—often referred to as co-benefits. These added benefits contribute to the United Nations Sustainable Development Goals (SDGs) and can significantly influence carbon credit prices.

Examples of Co-Benefits & Their Impact on Pricing

• Biodiversity Conservation (SDG 15 – Life on Land): Reforestation and afforestation projects that protect endangered species and restore ecosystems often attract premium prices.

• Clean Energy & Energy Access (SDG 7 – Affordable and Clean Energy): Carbon projects that provide clean energy access in developing regions, such as solar mini-grids, offer both emissions reductions and social benefits, making them more attractive.

• Job Creation & Economic Development (SDG 8 – Decent Work and Economic Growth): Some projects create local employment in rural or disadvantaged areas, improving social equity and increasing market demand.

• Health Improvements (SDG 3 – Good Health and Well-Being): Projects like clean cookstove distribution reduce air pollution, lowering respiratory diseases, which can justify higher credit pricing.

• Water Security & Sanitation (SDG 6 – Clean Water and Sanitation): Wetland restoration projects contribute to water purification and flood protection, adding value beyond carbon.

Projects that deliver multiple co-benefits are often in higher demand, as they align with broader corporate ESG goals and enhance brand reputation. As a result, carbon credits tied to high-impact SDG projects typically command a premium price compared to credits that only offer emissions reductions.

4. Supply and Demand Dynamics

Like any market, the voluntary carbon market operates on supply and demand.

• When corporate sustainability commitments surge—such as during COP summits or after major ESG regulations—demand for high-integrity credits rises, driving up prices.

• Limited supply of premium-quality credits (such as those from direct air capture or regenerative agriculture) also inflates their price.

• Conversely, an oversupply of lower-quality credits (like older renewable energy credits from projects that no longer need financial support) can depress prices.

Additionally, as new carbon credit buyers enter the market—such as airlines committing to net-zero flights—the competition for high-impact credits intensifies, increasing costs.

5. Middlemen Margins

Many carbon credits pass through multiple intermediaries—brokers, resellers, and exchanges—before reaching the end buyer. Each middleman adds a markup to cover their costs and generate profit, which can significantly impact the final price.

For example:

• Buying directly from project developers (when possible) tends to be more cost-effective but requires due diligence and expertise.

• Purchasing through brokers can provide convenience and assurance but may come with higher premiums.

• Marketplaces, such as Carbonmark, offer transparent pricing, detailed project descriptions, and direct access to a wide range of carbon credits. Marketplaces also streamline the buying process and significantly reduce transaction costs.

See our article “Brokers vs. Carbon Credit Marketplaces in the VCM: Which is Right for Your Business?” to learn more about this topic.

Understanding these cost layers helps buyers ensure they are paying a fair price for the climate impact they seek.

Pricing Trends for the VCM

For the voluntary carbon market to fulfill its role in scaling climate solutions, buyers need transparency and confidence in the credits they purchase. Investing in high-integrity carbon credits—those that support verified emissions mitigation and removal while delivering positive economic and social co-benefits—sends a clear demand signal, driving investment into impactful solutions.

As more companies and governments adopt net-zero targets, the value of credible carbon credits is expected to rise. Whether through regulatory shifts or voluntary commitments, the cost of emitting carbon is likely to increase, making high-integrity offsets a crucial component of future climate finance.

According to AlliedOffsets, average carbon credit prices are projected to remain below $10 per tonne until 2030, gradually rising to $30 by 2035. EY forecasts even higher prices, estimating a range of $75–$125 per tonne by 2035, driven by stricter quality standards and growing demand.

In our recent 2025 report, “Leveraging Blockchain for Scalable Climate Impact,” we discuss current market trends in more detail. You can download it here. 

How Blockchain Technology Ensures Transparent Pricing of Carbon Credits

Blockchain technology is transforming the VCM by bringing unprecedented levels of transparency, traceability, and efficiency—factors that are critical in establishing fair and accurate pricing for carbon credits.

Traditional carbon markets have long been challenged by fragmented data, opaque transactions, and difficulties in verifying credit legitimacy. Blockchain addresses these issues by providing a shared, immutable ledger where every transaction and retirement is recorded. This creates a verifiable history for each credit, reducing the risk of double-counting and enabling real-time price discovery based on actual market activity rather than opaque, bilateral agreements.

In addition to transparency, blockchain facilitates automated trading, enhances liquidity, and enables dynamic pricing of carbon credits. With all transaction fees publicly listed, intermediaries are minimized—lowering the risk of hidden markups or value extraction. This structure not only boosts market efficiency but also ensures that buyers and sellers can rely on transparent, real-time pricing as a credible reference for the broader market.

Carbonmark leverages these blockchain advantages to modernize the infrastructure of the voluntary carbon market. Its open and user-friendly marketplace offers access to a wide variety of carbon credits, with pricing that reflects both the cost and the impact of each credit.

By utilizing on-chain data and automated systems, Carbonmark ensures that every credit is traceable and accurately priced. This approach builds trust in credit legitimacy and price fairness—transforming carbon credit pricing from a black box into an open, auditable, and efficient process.

Visit our Buyers page to find out the best way for your business to purchase carbon credits—via bank transfer, credit card, or our carbon offset API.