Voluntary carbon offset prices fall

Uncertainty over integrity of offsets has weighed on prices since the start of the year, brokers tells Carbon Economist

Prices and volumes in the voluntary carbon market (VCM) have fallen sharply since the start of 2023, although retirements of credits are holding steady. Prices on the two most liquid futures markets on the CME exchange are down by around 60pc and 70pc on the year. The December 2023 global emission offset product is trading at around $3/t, down from $7/t a year earlier and $3.50/t at the beginning of this year. The NGO product for nature-based offsets is trading at c.$4.10/t, compared with more than $15/t this time last year and c.$6.50/t at the beginning of 2023.  The decline in futures prices is emblematic of an overall trend in the physical market, says Erduan Reid, head of voluntary carbo