The carbon offsets market has seen a slowdown since 2021 due to scandals surrounding project quality and overstated impacts.

However, demand is expected to rebound due to a shift towards high-quality, removal-based solutions and stricter market standards.

GlobalData’s Strategic Intelligence report shows that 47 out of the 100 largest listed companies are purchasing carbon offsets, but demand has been flat since 2021.

The long-term trajectory of the carbon offsets market will depend on six factors: corporate commitment to net zero targets, scalability of carbon removal technologies, carbon ratings agencies’ ability to elevate standards, advancements in monitoring, reporting, and verification systems, integration of offsets into emissions trading frameworks, and international consensus on cross-border offset trading.