Demand for voluntary carbon offsets unraveling

Demand is the catalyst for the rapid development of the voluntary carbon offsetting market. Just under 2,100 unique entities self-reported their offset purchases in 2021, with some spending tens of millions of dollars in hopes of achieving sustainability goals or gaining a competitive advantage with customers. Their purchases reveal the decarbonisation strategies of large companies. They also signal a troubling direction in which markets are heading, highlighting the need for more regulation, better market infrastructure and greater investor scrutiny.