Forestry Land Use Carbon Credit Market

Forestry & Land Use Carbon Credit Market Size

The global forestry & land use carbon credit market was estimated at USD 25.8 billion in 2024 and is expected to reach USD 105.2 billion by 2034, growing at a CAGR of 15.7% from 2025 to 2034. The industry has witnessed significant trends and shifts in recent years owing to the grappling urgent need to address climate change and the role of carbon credits in incentivizing sustainable land management practices.

Furthermore, increasing environmental disturbances due to climatic changes globally is also rising demand for Forestry & Land use carbon credit. For instance, in January 2025, via a study investigation in Antarctic ice showed significantly high level of methane emissions from the Antarctic seabed. Post registration of massive methane gas presence at the site further study is needed to understand impact of methane on eco system. To analyze this a Spanish team of scientists recorded possibilities of serious climate implications. Such discovery of methane emission highlights the earnestness of addressing climate changes. This leads to rise in adoption of Forestry & Land use carbon credit services.

Urbanization and industrialization is on rise, hence the greenhouse gas emission is spontaneously increasing on a global level. For instance, in September 2024, world industrial production was increased by 0.1% from August 2024. Similarly, since the commencement of industrialization the atmospheric carbon dioxide levels are also continuously increasing and it crossed 100% of the pre-industrial carbon dioxide emission level by 2023. For instance, the total carbon dioxide gas emission reached 40.6 billion tones in 2023 and is predicted to further grow in coming years. Thus, the rising industrialization is likely to increase demand for Forestry & Land use carbon credit services.

Forestry & Land Use Carbon Credit Market Trends

The forestry & land use carbon credit industry has been observing remarkable positive growth due to growing demand for efficient carbon capture services from different end users including large scale industries and other manufacturing and supply companies. This is encouraging several innovative initiations in the industry. Remote sensing, drones, artificial intelligence (AI), machine learning, blockchain and satellite imagery are some of these innovations in the field. Artificial intelligence aids in analyzes and develops an appropriate solution for carbon credit verification and tracing. Blockchain technology further aids in creating transparent solutions to track carbon credits from production process to supply and procurement. Thus, it avoids any fraud related to emissions data and helps in designating proper funds for legitimate environmental projects.

Furthermore, rising aims on reforestation, agroforestry, or sustainable land management practices is helping to create a supportive economic benefit along with protection of nature. For instance, in 2023, more than 51 million trees were planted by One Tree Planted program that supported more than 90 locally led organization to reforest Africa’s land and support economic development in the region.

Similarly, in August 2024, in the Outer Hebrides the UK’s largest community owned windfarms funded to plant more than one million native trees. The project has already successfully planted over 200,000 trees across 245 crofts, plots of land. Such initiatives connect local community with carbon credit providers, thus making the carbon credit services more approachable for small scale projects.

In addition, rising restoration of wetlands, peatlands and mangrove projects are gaining traction for its capacity of carbon capturing. Such ecosystem stores carbon for longer duration and develops significant carbon credits. These ecosystems further increase demand for Forestry & Land use carbon credit services. For instance, in March 2025, post securing more than USD 17.5 million charity from private donor the Scottish Wildlife Trust now owns around 7,618 hectare Inverbroom Estate near Ullapool. The project focuses on restoring peatland develop new Atlantic rainforest and rejuvenate riverside woodlands. Such initiatives in restoring ecologically important lands helps in carbon tracking and positively impact in demand of Forestry & Land use carbon credit.

Forestry & Land Use Carbon Credit Market Analysis

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• The forestry & land use carbon credit industry reached USD 21.7 billion, USD 23.1 billion and USD 25 billion in 2022, 2023 and 2024 respectively. As the population across the globe is rising simultaneously the energy demand is rising as well. For instance, according to the U.S. Energy Information Administration (EIA) electricity consumption is predicted to grow by 2% in 2025 and 2026 from 2% growth in electricity demand in 2024. Crossing 4000 billion kWh and 4,200 billion kWh in 2025 and 2026 respectively.
  
• Thus, rise in electricity consumption in the nation is forcing tech companies to adopt coal and other fossil fuel to produce energy in order to reach the demand level of energy. For instance, in February 2025, Entergy built a natural gas power plant of 2,300 MW to serve Meta’s USD 10 billion AI data center in northern Louisiana, two new plants Texas and Mississippi.
  
• This is predicted to rise the carbon dioxide emissions from energy consumption sector. For instance, as per the U.S. EIA energy related carbon dioxide emissions is predicted to rise by 1% in 2025. Such trends is hindering the adoption of renewable energy sources and rising carbon footprints from various technology providing companies. This in turn will increase demand for Forestry & Land use carbon credit.
  
• Engagement on the corporate level has also increased, with companies searching for dependable carbon offset projects that can help them meet their sustainability objectives. For instance, in January 2025, Microsoft signed a contract to finance the restoration of portions of the Amazon and Atlantic forests in Brazil, which included the purchase of 3.5 million carbon credits from the Re.green Brazilian startup. The deal is a strong indicator of the increasing dependence on nature-based carbon removal solutions to mitigate emissions from nonrenewable sources, especially from the more demanding industries, such as technology.
  

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• The forestry & land use carbon credit market by type is segmented into voluntary and compliance. The compliance segment accounted for over 99.7% revenue share in 2024. Compliance forestry & land use carbon credit are set by governments or international bodies as a part of regulatory carbon policies to achieve emission reduction targets. Favorable government regulations implied is the significant driving factor for compliance forestry & land use carbon credit.
  
• For instance, in November 2024, at COP28 the World Bank introduced the carbon markets engagement roadmap to generate forest carbon credits by 2028. The initiation would decrease large scale carbon emission reduction by implying the guidelines in 15 countries. This will positively increase the demand for compliance forestry & land use carbon credit segment.
  
• Furthermore, increasing initiatives taken by private and public companies to switching to renewable energy sources and adoption of sustainable technology is expected to drive demand for voluntary forestry & land use carbon credit segment.
  

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• The U.S. forestry & land use carbon credit market reached USD 1.4 billion, USD 1.9 billion and USD 2 billion in 2022, 2023 and 2024 respectively. Growing industrialization, rising concerns over carbon emission in environment and rising energy consumption is expected to drive the growth of market in the U.S.
  
• For instance, in 2022, U.S. manufacturing industries accounted for 12% of combustion related GHG emission and is projected to increase by 17% in the period between 2024 to 2050 due to growth in output and energy consumption.
  
• Similarly, rising manufacturing industrial output growth and rising local community-based reforestation and restoration of wetland is expected to drive the market in Asia Pacific.
  

Forestry & Land Use Carbon Credit Market Share

Top 5 companies including Verra, EcoSecurities, Weyerhaeuser, SCA and Sierra Pacific Industries held a market share of over 40% in 2024. Major key players operating in forestry & land use carbon credit industry and players are working to develop cost-effective and wide volt range portable LFP batteries.

Among these companies Verra is one of the largest share holding company in the forestry & land use carbon credit market. Owing to its vast offerings, widespread of geological clientele and strategic partnership with clients to offer suitable Forestry & Land use carbon credit. The demand for Forestry & Land use carbon credit is expected to boost as the energy demand is rising and increasing initiation towards reforestation constantly grow, especially in emerging countries such as Brazil, China, and India.

Furthermore, supportive government regulations in the developing and developed countries and wider networking will rise in demand for Forestry & Land use carbon credit and aids strong uphold of market in the cost-sensitive group of consumers. Other major companies including EcoSecurities, Weyerhaeuser, SCA and Sierra Pacific Industries are also poised to target significant share of the market in focus, particularly in cost-sensitive target group and data providing and technology providing sectors.

Forestry & Land Use Carbon Credit Market Companies

Some of the key players operating across the Forestry & Land use carbon credit industry are:

• 3Degrees
• ALLCOT
• Atmosfair
• CarbonClear
• Climate Impact Partners
• ClimeCo LLC.
• EcoAct
• Ecosecurities
• Green Mountain Energy Company
• PwC
• South Pole
• Sterling Planet Inc.
• TerraPass
• The Carbon Collective Company
• The Carbon Trust
• VERRA
• WGL Holdings, Inc.
  
• Verra is a U.S. based designing and implementation of carbon, sustainable development, and plastic waste reduction projects provider. The company operates across the globe and issued more than 148 million verified carbon units and held more than USD 29 billion revenue in 2023. The MoU agreement between Verra and Singapore in support of national carbon tax is projected to help expand company’s revenue growth.
  
• EcoSecurities is a UK based company developing and managing carbon credit projects, including those in the forestry sector. The company held more than USD 22 million annual revenue in 2024. The company has created more than 400 million carbon credits and over 700 projects across 45 countries.
  
• Weyerhaeuser a U.S. based timberland company owning more than 12,000,000 acres of timberlands in U.S.  The company witnessed revenue of over USD 7 billion in 2024. Their recent strategies of approval of Weyerhaeuser’s IFM carbon credit project in Maine covering more than 45,000 acres is expected to boost the company revenue growth further head.
  
• SCA is a Sweden based timber, pulp and paper manufacturing company. The company registered a revenue of over USD 1 billion in 2024. The company provides nearly 100 million seedlings yearly. The company contributed a total climate benefit for more than 12 million tons of carbon dioxide emission in 2023.
  
• Sierra Pacific Industries is a U.S. based third-generation family owned products company and is lumber producer. The company held around revenue of USD 5 billion in 2024. The company recently introduced seedling planting initiative to pant its 300 millionth seedling on its timberland to focus on their aim of sustainable forest management showcase strong hod in the forestry & land use carbon credit market.
  

Forestry & Land Use Carbon Credit Industry News

• In January 2025, Indonesian Forestry Minister announced developed an innovative mechanism to aid the trading of carbon from the forestry and other land use (FOLU) sector.
  
• In July 2024, Andhra Pradesh Forest Department (APFD) announced an initiative of an innovative carbon market to restore mangrove forests in the state. The project aims to achieve 1,650,000 emission reductions over next 20 years.
  
• In December 2023, the Madagascar received USD 8.8 Million for Forest Carbon Credits that will further protect the remaining forests and communities. The initial payment marks the commencement of the first installment within the nation's Emission Reductions Payment Agreement (ERPA) with the Forest Carbon Partnership Facility (FCPF) of the World Bank. This agreement will mobilize a total of USD 50 million, dedicated to the reduction of up to 10 million tons of carbon dioxide equivalent (CO2e) emissions along the eastern coast of the country's rainforest by the conclusion of the year 2024.
  
• In June 2023, the Integrity Council for the Voluntary Carbon Markets and the Voluntary Carbon Markets Integrity Initiative, a joint commitment to provide a coordinated set of standards throughout 2023 aimed at establishing an integrated market integrity framework for high-quality, transparent, credible, and accountable carbon credits. This framework provides for both carbon removal credits and carbon reduction credits, which is a key difference when compared to the EU Carbon Removal Certification.
  

This forestry & land use carbon credit market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

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Market, By Type

• Voluntary
• Compliance

The above information has been provided for the following regions:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America