Forestry and Land Use Carbon Credit Market is Expected to grow at a robust CAGR of 8.43% through 2030F
The increasing global forestry and land
use carbon credit market is driven by surge in voluntary market participation
by private corporations, and integration of digital technologies for monitoring
and verification during the forecast period 2026-2030F.
According to TechSci Research report, “Forestry and Land Use Carbon Credit
Market – Global Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2020-2030F”, The Global Forestry and Land
Use Carbon Credit Market was valued at USD 25.84 Billion in 2024 and is
expected to reach USD 43.37 Billion by 2030 with a CAGR of 8.43% during the
forecast period. An accelerating trend in the global Forestry and Land Use
Carbon Credit Market is the rapid growth in voluntary market participation by
private corporations. Driven by rising stakeholder expectations and ESG
investment frameworks, companies across sectors—especially technology, energy,
aviation, and consumer goods—are actively purchasing land-use carbon credits to
fulfill carbon-neutrality goals. Firms such as Microsoft, Amazon, Unilever, and
Shell have made multi-year commitments to procure high-quality forestry
offsets. These credits are being used not just for compliance, but as part of
broader sustainability narratives. Companies are increasingly selecting
projects with co-benefits such as biodiversity preservation, water management,
and community development to align with corporate social responsibility
targets. Many are also publishing their carbon offset portfolios in
sustainability disclosures to improve transparency. This trend has contributed
to a shift in market dynamics, where buyers now prioritize not just carbon
removal, but impact storytelling and reputational value. The preference for
credits with verifiable social and environmental co-benefits has encouraged the
development of more holistic project frameworks and enhanced market competition
among developers. As more companies adopt net-zero goals—many of which have
2030 deadlines—the voluntary market is expected to grow faster than compliance
markets, making it a major catalyst for forestry-based credit demand.
Digital innovation is transforming how
forestry and land-use carbon credits are monitored, verified, and issued.
Project developers are increasingly adopting satellite imagery, remote sensing,
drones, and LiDAR technology to map forest cover, monitor biomass changes, and
detect deforestation in near real-time. These tools significantly reduce the
cost and time associated with traditional field verification while increasing
the accuracy of data collection. Artificial Intelligence (AI) and machine
learning models are now capable of estimating carbon stocks with minimal human
input, enabling faster and more scalable project validation. Blockchain is
another emerging technology being integrated into carbon credit registries to
enhance traceability and prevent double-counting. Smart contracts are being
explored to automate credit issuance and transfer between parties. The adoption
of these technologies is improving transparency and trust across the carbon
market value chain. Investors and buyers now demand granular data that
demonstrates measurable climate impact. As a result, technology providers
specializing in geospatial analytics and digital MRV platforms are becoming
essential stakeholders in the carbon ecosystem. With rising regulatory scrutiny
and corporate accountability standards, this digital shift is expected to
become a cornerstone of market credibility and scalability in the years ahead.
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Forestry and Land Use Carbon Credit Market"
Based on project type, soil carbon
sequestration is the fastest growing segment in the global Forestry and Land
Use Carbon Credit market during the forecast period, driven by its
vast potential, agricultural scalability, and emerging technological
advancements. Unlike afforestation or reforestation, soil carbon projects can
be implemented across a broad range of land types, especially degraded
agricultural and pasture lands. With over 5 billion hectares of global
agricultural land, the scalability of soil-based projects far surpasses other
project types, offering a massive opportunity for carbon removal and climate
mitigation. Soil carbon sequestration involves enhancing carbon storage in the
soil through regenerative practices like no-till farming, cover cropping,
rotational grazing, compost application, and agroforestry. These methods not
only increase carbon retention but also improve soil health, water retention,
and crop yields—making them economically attractive for farmers. As a result,
the dual benefit of environmental impact and productivity gain is fueling
adoption among both smallholders and large agribusinesses.
Furthermore, advancements in soil carbon measurement
techniques, including satellite remote sensing, AI-driven models, and in-field
sensors, have significantly reduced the cost and complexity of verifying soil
carbon improvements. This has improved project credibility and increased
investor interest. Additionally, voluntary market platforms and standards, such
as Verra’s VM0042 methodology and Regen Network’s blockchain-based systems, are
increasingly recognizing and certifying soil carbon credits, boosting their
market value. Governments and corporations are also incentivizing soil carbon
initiatives as part of broader sustainability programs. For example, food and
consumer goods companies are integrating regenerative agriculture into their
supply chains to meet Scope 3 emissions targets. This growing alignment between
carbon finance and sustainable agriculture is expected to significantly
accelerate the growth of soil carbon projects.
Based on region, Asia Pacific is the
fastest growing region in the Global Forestry and Land Use Carbon Credit Market
during the forecast period driven by a combination of vast forest resources,
increasing climate policy commitments, growing corporate demand, and active
international cooperation. Countries such as Indonesia, India, Vietnam, and
Malaysia offer expansive landscapes suitable for afforestation, reforestation,
REDD+ (Reducing Emissions from Deforestation and Forest Degradation), and soil
carbon projects, providing high potential for scalable carbon credit
generation. Governments across the region are strengthening their climate
commitments under the Paris Agreement and integrating nature-based solutions
into their Nationally Determined Contributions (NDCs). For example, Indonesia
and Vietnam have launched jurisdictional REDD+ programs with international
support, while India has committed to enhancing carbon sinks through extensive
afforestation and land restoration efforts. These government-led initiatives
have created an enabling policy environment that encourages the development and
certification of forestry carbon projects.
Furthermore, Asia Pacific is witnessing rapid growth
in private sector engagement, particularly from export-driven industries and
multinational corporations based in the region. Companies are seeking
high-integrity, local carbon credits to fulfill voluntary commitments and
reduce Scope 3 emissions. Markets like Singapore are also establishing
themselves as regional carbon trading hubs, offering regulatory support and
financial infrastructure to facilitate carbon offset trading. Technological
advancements and support from international organizations, such as the World
Bank’s FCPF (Forest Carbon Partnership Facility) and UN-REDD Programme, are
enhancing monitoring, reporting, and verification (MRV) systems, making it
easier to validate and issue high-quality credits. Additionally, the region’s
biodiversity, coupled with strong community involvement, enables projects to
earn premium value through co-benefit certifications.
Key market players in the Global Forestry
and Land Use Carbon Credit market are: -
- South Pole
- The Nature Conservancy
- Wildlife Works
- BioCarbon Partners
- InfiniteEARTH
- Verra
- Climate Focus
- Terra Global Capital
- Finite Carbon
- GreenCollar
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“The Global Forestry and Land Use Carbon Credit Market
presents significant opportunities driven by rising global demand for
nature-based climate solutions. Expanding corporate net-zero pledges and ESG
mandates are fueling investment in afforestation, reforestation, and soil
carbon projects. Technological innovations in satellite monitoring and digital
MRV systems are enhancing credit verification, while co-benefits like
biodiversity conservation and community development attract premium pricing.
Emerging carbon trading platforms and supportive government policies,
particularly in Asia Pacific and Latin America, offer scalable project
deployment. The market also opens pathways for public-private partnerships,
sustainable land management, and rural economic development through carbon
revenue-sharing models.Top of Form” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based Global management consulting firm.
“Forestry
and Land Use Carbon Credit Market - Global Industry Size, Share, Trends,
Opportunity, and Forecast, Segmented By Project Type (Afforestation, Avoided
Deforestation, Agroforestry, Soil Carbon Sequestration, Others), By Credit Type
(Verified Carbon Units, Certified Emission Reductions, Gold Standard Credits,
Others), By End-User (Energy & Utilities, Manufacturing, Transport &
Logistics, Agriculture, Others), By Region & Competition, 2020-2030F,” has evaluated the future
growth potential of Global Forestry and Land Use Carbon Credit Market and
provides statistics & information on market size, structure, and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Forestry and Land Use Carbon Credit
Market.
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