The voluntary carbon market (VCM) is undergoing a significant transformation, driven by an increasing demand for carbon removal offsets, particularly nature-based solutions. These solutions, including afforestation, reforestation, soil carbon sequestration, and biochar, offer scalable, low-cost options with substantial co-benefits like enhanced biodiversity and improved livelihoods. While the market shifts away from emission avoidance credits, nature-based removals are gaining prominence, supported by new methodologies that enhance transparency, accuracy, and verification standards. As these advancements progress, the market anticipates a greater supply of high-integrity removal credits, positioning low-cost solutions at the forefront of global carbon strategies.

This Analyst Note studies the key protocols in low-cost removals reviewing current demand and supply landscapes underlying these methodologies.  We also provide future expectations informed by extensive data and conversations with industry experts.