The trade in voluntary carbon credits exceeded $1 billion in 2021, a 3x increase year-on-year and a significant milestone in demonstrating that it’s a functional market. With increasing recognition of the role of nature-based solutions in reaching ‘net zero,’ the voluntary carbon market has established itself as an important part of climate change mitigation and is expected to continue to expand rapidly in the next five to 10 years. McKinsey estimates that the market could be worth as much as $50 billion by 2030.

However, so far, agriculture’s contribution has not grown as fast as the wider market and remains a small fraction of the total despite its vast potential as a carbon sink.

Harnessing the promise of agri-carbon markets and the scale of agriculture has its own particular challenges; the early history of agri-carbon markets has been characterized by unmet promises and false dawns. But these obstacles are surmountable with smart program design and innovative tech solutions, offering the industry a clear path to success and scale.