The voluntary carbon market (VCM) witnessed both considerable progress and significant hurdles in 2023 as reviewed by the MSCI Carbon Markets in its recent webinar.
The review includes key developments from 2023 and the potential inflection points to watch out for in 2024. Notably, the findings show that 2023 has the lowest number of credits issued in 3 years. In contrast, the year ended with a record number of monthly retirements.
Here’s a recap of the webinar, focusing on carbon credit issuances and retirements, demand, key market players, investment, major policy developments, and 2024 outlook.
Peaks, Valleys, and 2023’s Record Retirements
In 2023, credit issuances recorded the lowest annual total in 3 years after falling 25% year-on-year, as seen below. This slow down in supply was largely due to Nature-based and renewable energy projects issuing their lowest annual amounts in 5 and 4 years, respectively.
On the other hand, energy efficiency projects were the only major type to increase credit supply. It doubled in 2022 volumes, primarily driven by cook stove projects.
The MSCI report saw retirements rallied in Q4 2023, the second highest quarter on record. And that’s despite the slow down in corporate activity in mid-year. This momentum seems to have been carried into January this year.

In fact, that’s the second highest January to date and may even exceed the 17 MtCO2 set in 2022. December 2023 alone has seen 36 megatons of credit retirement, setting a new monthly high, around 25% above the previous high record.

When it comes to registries, the four largest, namely Verra, Gold Standard, ACR, and CAR continue to dominate the market. They provide more than 90% of the credits retired last year.
Retirements from these “Big 4” registries actually rose last year by 6%, while retirements across the next ten prominent names dropped slightly in 2023.
The Top 10 Credit Retirees
Of the top 10 retirees, Delta Airlines aced the first spot. They were also the largest retiree corporate in 2021 and 2022. While some of these companies exited the top 10 last year, others remain while new ones entered the market.
Shell topped the list in 2023 with around 16 million metric tonnes, followed by Volkswagen with over 8 MtCO2e. Overall, there are more joiners than leavers last year when it comes to retiring credits.

Unlocking the Nascent Carbon Removal Market
Gaining a lot of interest in 2023 is the nascent CDR market, referring to high permanent engineered carbon removals. These include biochar and direct air capture, which usually command a premium price than other project types. That’s because they’re known to be of higher quality and high durability.

Last year, the number of CDR transactions fell slightly year-on-year. But the quantity of credits, represented by the right hand chart, increased significantly to 5.4 million.
Navigating the Ups and Downs of Carbon Credit Prices
The declining trend in 2022 was carried over into the first half of 2023. But looking at the average level, the drop wasn’t that much. It was only 16% lower in 2022 compared to 2023.


In terms of price by project type for last year, all of them were lower in Q4, resulting in full year price declines. REDD+ projects saw the least drop, 15%, while renewable energy experienced the largest price decrease, 39%.
Both energy efficiency (pink line) and REDD+ (green line) projects were subject to increased media and academic scrutiny in 2023. They sustained weaker prices.

Interestingly, both nature restoration and non-CO2 gasses projects rebounded in November and December last year. Meanwhile, energy efficiency, REDD+, and non-CO2 gasses converged around the same price level at $4.65 by the end of the year.
This suggests that the market is not distinguishing between these project types, potentially signaling a weak market environment.
Policy Developments in 2023: From EU Directives to COP28’s Uncharted Territories
Last year also saw some major policy developments. For instance, the EU’s green claims directive aims to empower consumers for the green transition directive. It bans claims of neutral, reduced, or positive climate impact based on carbon offsetting, on the grounds that it’s a misleading consumer practice.
Moreover, the VCMI carbon integrity claims, the Claims Code of Practice (CCPs), is a significant regulation for the VCM.
There are also landmark regulations of market trading and standards wherein national governments are stepping in. For example, the US Commodity Futures Trading Commission (CFTC) introduced proposed guidance for trading of voluntary carbon credit derivative contracts.
In the Global South, there has been growth in national carbon credit markets while carbon pricing systems and schemes are being proposed in several African countries. Amid increased scrutiny in carbon credits certified by Verra, the leading carbon certifier updated its standards.
At the COP28 climate summit, carbon markets find their footing amid Article 6 frustrated talks. Article 6.2 rules are mostly in place but there’s a lack of Article 6.4 agreement on key steps. Disagreements centered on integrity concerns, yet Article 6 agreements are moving ahead.
Looking forward, MSCI Head of Carbon Markets, Guy Turner, raised a pertinent question: “Could we be at an inflection point for the market in 2024?”
There could be a number of inflection points, five in particular.
- The potential new sources of demand driven by CORSIA, VCMI, SBTi, and more compliance markets in near and long term.
- Quality initiatives moving into implementation.
- Jurisdictional approaches are starting to take off – whether by governments or donor institutions. High interests are observed in jurisdictional soil carbon and blue carbon.
- Increasing clarity for corporations on claims and disclosures on the use of credits, with the EU and UK taking the lead.
- Macroeconomic cycle turning but political uncertainties
In the ever-evolving landscape of the voluntary carbon market, 2023 marked both triumphs and challenges. From record retirements to the rise of CDR investments, the market navigated uncertainties. As 2024 unfolds, potential inflection points await, shaping the future trajectory of the global carbon market.
The post Carbon Market Chronicles: 2023 Unveiled and 2024’s Inflection Points appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

The post Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia appeared first on Carbon Credits.
Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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