Carbon Market on the Rise: Stronger Standards, Greater Impact

The global carbon offsets market is entering a new era—one defined by stronger quality controls, greater transparency, and deeper integration into corporate net-zero strategies. After a slowdown post-2021, driven by concerns over project credibility, the focus on measurable results and robust verification is now fueling renewed momentum among companies committed to meaningful climate action.

Looking through the leafy crowns of young deciduous trees toward older trees. AI generated picture.

A new Strategic Intelligence report from GlobalData reveals that 47 of the world’s top 100 publicly listed companies are currently active in purchasing carbon offsets. While overall demand has remained steady in recent years, improving standards and more rigorous project verification are expected to spark fresh growth, restoring corporate confidence in offsetting as a credible sustainability tool.

‘As a result, companies that remain in the market are focusing on obtaining high-quality offsets, often using carbon ratings agencies or shifting from avoidance to removal offsets,’ explains Pinky Hiranandani, Strategic Intelligence Analyst at GlobalData. ‘This is especially evident in the tech sector, where giants like Microsoft and Google are investing heavily in offsets to meet ambitious 2030 net-zero targets.’

The report identifies six key forces shaping the future of the market: the staying power of corporate climate commitments, the scalability of carbon removal technologies, enhanced oversight from carbon ratings agencies, innovations in monitoring and verification, integration with emissions trading systems, and international alignment on cross-border offset trade.

The energy and technology sectors continue to dominate offset purchases, with companies such as Shell and Microsoft leading the charge. Interest is surging in removal-based solutions—including biochar production and agroforestry—that deliver permanent, verifiable carbon reductions. While these approaches currently face high costs, ongoing innovation and scaling are expected to make them increasingly viable for a wider range of businesses.

Hiranandani adds: ‘As the market evolves, there will be an increasing shift towards carbon removal technologies, which offer clear evidence of permanent climate benefits. Companies must navigate the complexities of offset quality while balancing their climate commitments.’

For businesses, this shift signals a strategic opportunity: to reinforce environmental goals, build trust with stakeholders, and secure tangible, long-term results. As standards rise and technology advances, the future of carbon offsets looks more robust—and more impactful—than ever.