How are carbon credits priced?

In the unregulated VCM market, project developers have the autonomy to set prices according to their discretion.The range of carbon credit prices is quite broad, but we typically see most projects fall between 10 and 100€ per ton.Carbon credit prices can vary based on several factors, including:

  • The project's financial needs, which depend on its business model and complexity
  • The project's location
  • The project's vintage
  • The project's co-benefits
  • The cost of project certification

Removal carbon credits often command higher prices compared to avoidance carbon credits.

Based on our analysis, here is a subjective classification of carbon credit prices:

  • Renewable energy and non-deforestation projects in Annex B countries: 5-10€
  • Reforestation projects in Annex B countries: 15€
  • Reforestation projects in Europe: 20-25€
  • Industrial avoidance in Europe: 30-40€
  • Biobased construction storage in Europe: 50€
  • Biochar projects in Europe: 100-150€
  • Long-term storage innovative projects (e.g. DAC): 500€