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    Voluntary carbon market

    What is the voluntary carbon market and how does it work?

    Find out how you can benefit from it and reduce your emissions.

    Basics
    Differentiation from the mandatory market
    Functionality
    Primary market vs. secondary market
    Price development
    Trading window for 2025
    Conclusion
    Basics

    The voluntary carbon market is a system in which companies, organizations and individuals voluntarily buy CO₂ certificates to offset their emissions.

     

    The voluntary carbon market:
    Supports projects in developing countries that could not be financed without the sale of certificates.
    Promotes innovation in CO2 reduction and storage.
    Enables companies to achieve their climate targets (e.g. "net zero" commitments).
    Can be part of a comprehensive climate strategy.
    Enables private individuals to offset their lifestyle.
    Projects can be implemented where CO₂ savings are particularly cost-effective.
    Promotes sustainable development and biodiversity.
     
    The following certificate types are distinguished:
    Type of certificate Characteristics Example projects
    Emission Reduction Credits (ERCs) Compensation by avoiding emissions Renewable energies, methane gas control
    Removal credits CO₂ is actively removed from the atmosphere Reforestation, direct air capture (DAC)
    Avoided emissions credits Prevents future CO₂ emissions Forest protection (REDD+), sustainable agriculture
    Blue carbon credits CO₂ absorption in marine ecosystems Mangrove protection, seagrass meadows
    Differentiation from the mandatory market

    Voluntary carbon market Mandatory carbon market (e.g. EU ETS)
    Legal requirements Participation is voluntary Participation is mandatory by law.
    Main actors Companies, NGOs, individuals, investors Companies
    Price regulation No statutory price regulation, supply and demand determine the price Supply and demand determine the price; state intervention possible in some cases
    Focus Focuses on offsetting emissions Focuses on reducing emissions by setting emission limits

    Functionality
    CO₂ certificates are generated by climate protection projects that:
    avoid CO₂ emissions (e.g. through renewable energies or energy efficiency)
    remove CO₂ from the atmosphere (e.g. reforestation or direct CO₂ capture)
    For a project to be allowed to issue CO₂ certificates, it must prove that it achieves an actual, additional and long-term CO₂ reduction.

    One CO₂ certificate is issued for every 1 tonne of CO₂ that is saved or removed.
    These certificates are verified and issued by independent organizations.

    As the voluntary CO₂ market is not uniformly regulated, there are variouscertification standards designed to guarantee the quality of CO₂ certificates. The most important are:
    Gold Standard ( co-developed by WWF, high social and ecological standards)
    Verra (VCS - Verified Carbon Standard) ( most widely used worldwide)
    American Carbon Registry (ACR)
    Climate Action Reserve (CAR)

    As soon as an actor uses a CO₂ certificate to offset its own emissions, it is retired - meaning it cannot be sold again - and it is officially counted as a CO₂ offset.

    Primary market vs. secondary market
    Feature Primary market Secondary market
    Definition Direct sale of CO₂ certificates by climate protection projects Existing certificates are resold between companies or via trading platforms such as q-bility GmbH.
    Buyers Companies, investors, NGOs Brokers, CO₂ exchanges, investors, companies
    Pricing The price is negotiated directly. Supply and demand determine the price.
    Trading location Directly between project developers and buyers or via brokers or specialized trading platforms such as q-bility GmbH. Via brokers or specialized trading platforms such as q-bility GmbH.
    Purpose Financing of climate protection projects Flexibility & short-term trading with certificates


    Price development

    The price trend in the voluntary carbon market is influenced by various factors and shows a dynamic tendency.

    Factors that influence the price trend:
    Supply and demand: growing climate awareness and ambitious climate targets are increasing the demand for CO₂ certificates. At the same time, the available supply from climate protection projects influences pricing.CO2 certificates Germany
    Quality of certificates: High-quality certificates that meet strict standards achieve higher prices. However, a lack of uniform standards can lead to price differences.
    Regulatory developments: International agreements and national climate policies can influence the carbon market and thus change the price of certificates.

    Trading window for 2025
    The voluntary carbon market does not have a fixed trading period like regulated markets. Instead, the trading time depends on various factors:
    Primary market: trading during the project lifetime:
    CO₂ certificates are issued as soon as a carbon offset project has been certified.
    Some projects already sell certificates in the development phase via advance contracts (ERPA).
    The trading period extends over the entire project term, which can vary depending on the project type (e.g. 10-30 years for forest conservation projects).
    Secondary market: Trading is possible at any time:
    The secondary market enables continuous trading, as certificates have already been issued and can be traded freely.
    Buyers can purchase certificates at any time as long as they have not been retired.
    Prices are subject to supply and demand and can change over time.
    Conclusion
    The voluntary carbon market is an important instrument for financing climate protection measures.
    The voluntary carbon market finances climate protection projects worldwide.
    Companies use it to achieve climate targets.
    Investors use it to pursue their own goals.

    FAQ

    Frequently asked questions about the GHG quota
    What is the voluntary carbon market?
    The voluntary carbon market enables companies, organizations and private individuals to buy CO₂ certificates to offset their greenhouse gas emissions. These markets are not prescribed by law, but are based on voluntary commitment to climate protection.
    How does trading with voluntary certificates work?

    One CO₂ certificate corresponds to one tonne of CO₂ emissions saved or removed. These are generated by climate protection projects that reduce emissions (e.g. renewable energies) or remove CO₂ from the atmosphere (e.g. reforestation).

    On the primary market, CO₂ certificates are sold directly by climate protection projects.
    Existing CO₂ certificates are resold on the secondary market.

    Who can buy CO₂ certificates on the voluntary market?

    Companies with climate targets (e.g. net zero strategies)
    Investors & funds speculating on rising CO₂ prices
    Private individuals who want to offset their carbon footprint
    Governments & NGOs to support climate protection projects

    What certification standards are there in the voluntary carbon market?
    Gold Standard ( co-developed by WWF, high social and ecological standards)
    Verra (VCS - Verified Carbon Standard) ( most widely used worldwide)
    American Carbon Registry (ACR)
    Climate Action Reserve (CAR)
    What types of CO₂ certificates are there?
    Certificate type Characteristics Example projects
    Emission Reduction Credits (ERCs) Compensation by avoiding emissions Renewable energies, methane gas control
    Removal credits CO₂ is actively removed from the atmosphere Reforestation, direct air capture (DAC)
    Avoided emissions credits Prevents future CO₂ emissions Forest protection (REDD+), sustainable agriculture
    Blue carbon credits CO₂ absorption in marine ecosystems Mangrove protection, seagrass meadows
    Are all CO₂ certificates equivalent?

    No! Not all certificates are of high quality. Removal credits are particularly valuable because they actually remove CO₂ (e.g. reforestation, carbon capture). Cheaper certificates that only prevent emissions (e.g. solar energy projects) often have less of an impact on the climate.

    How do I recognize high-quality CO₂ certificates?

    The following criteria should be observed:
    Certification by recognized standards (e.g. Verra, Gold Standard)
    Transparent reports & independent audits
    Additional climate benefits (e.g. biodiversity, social projects)
    Genuine CO₂ removal (not just emissions avoidance)