Global carbon markets are undergoing a transformation towards greater transparency, credibility, and technological efficiency. International cooperation and newly established standards are enhancing the effectiveness of carbon credits.
Global carbon markets are undergoing a transformation towards greater transparency, credibility, and technological efficiency. International cooperation and newly established standards are enhancing the effectiveness of carbon credits and accelerating progress toward net-zero targets.
Voluntary carbon markets are evolving rapidly to become more transparent, reliable, and impactful. This shift supports countries and companies in achieving their net-zero targets while increasing the credibility of carbon credits. Below are the most significant developments as of May 2025:
As part of Peatland Code projects, updated data on issued carbon credits for 2020–2024 has been published. The analysis—conducted by Scottish Forestry and the International Union for Conservation of Nature (IUCN)—sheds light on pricing, transaction volumes, and market transparency in the voluntary sector.
Institutions like the Science Based Targets initiative (SBTi) and the UN High-Level Expert Group on Net Zero urge companies and financial institutions to eliminate deforestation from supply chains by 2025. The Accountability Framework initiative (AFi) provides comprehensive global guidelines, particularly for agriculture and forestry sectors.
The Integrity Council for the Voluntary Carbon Market (ICVCM) has released its first Continuous Improvement report, focusing on “permanence.” This initiative aims to boost trust in long-term climate impact and support the credibility of voluntary carbon credits.
According to the International Energy Agency’s (IEA) Global EV Outlook, EV sales may exceed 20 million in 2025. Despite economic uncertainty, electric vehicles are projected to surpass 25% market share—marking a major leap for sustainable transportation.
As part of Article 6 of the Paris Agreement, the United Nations has released new standards to ensure credits reflect real, verifiable emissions reductions. These rules also address fair benefit-sharing for host countries and integrate methods for emission calculation and leakage.
The Paris Agreement Implementation and Compliance Committee (PAICC) reminds all countries to submit their updated Nationally Determined Contributions (NDCs) and Biennial Transparency Reports (BTRs) on time—marking a new phase of international climate accountability.
Researchers at the Massachusetts Institute of Technology (MIT) have introduced a new nanomembrane that enhances carbon capture efficiency by six times and cuts energy use by up to 30%. This innovation marks a breakthrough in carbon capture and storage (CCS) technology.
These developments clearly demonstrate that carbon markets are not only growing in scale but also improving in quality, with a strong focus on transparency, scientific rigor, and credibility. The ICVCM's permanence report strengthens trust in long-term impact, while global efforts against deforestation and new UN standards emphasize the importance of environmental and social integrity in climate action.
Technological advancements such as the rise of electric vehicles and cost-efficient carbon capture solutions provide practical pathways for reducing emissions. Meanwhile, the increased expectations for reporting and compliance under the Paris Agreement send a strong message of shared responsibility and global coordination.
At CO2 Manager, we fully support this evolution. Our TSE-certified, user-friendly, and GHG-compliant carbon accounting software is designed to help businesses implement internationally recognized climate standards in a practical and accessible way. We offer reliable tools for credible climate reporting and strategic emission management.
Source:
Republic of Türkiye, Ministry of Environment, Urbanization and Climate Change – Directorate of Climate Change, Carbon Pricing Bulletin (May 2025)