Tech Firms Push ARR Carbon Credit Prices to New Highs

Afforestation, reforestation, and revegetation (ARR) carbon credits are gaining serious traction, with major tech companies helping push prices to record levels. In some recent transactions, credits have reportedly sold for as much as $70 per tonne of CO₂ equivalent (tCO₂e), particularly in deals involving giants like Microsoft and Google.

In the foreground, young tree seedlings thrive near Google office buildings, while two individuals in the background sit on the grass working on their laptops. AI generated picture.

These top-tier prices reflect a growing emphasis on biodiversity, transparency, and long-term project viability. Projects like those run by Brazil’s Mombak are moving beyond monocultures, planting up to 50 native species in remote areas—an approach that significantly increases costs but aligns with buyers' rising expectations for environmental integrity.

Microsoft’s recent deal for credits from a Panamanian ARR project developed by Ponterra is one example of this shift, with the price said to be close to the $70/tCO₂e mark. Tech firms are taking a proactive stance, often requesting detailed cost breakdowns and future pricing forecasts as part of their due diligence.

While some ARR credits are now developed under newer methodologies like Verra’s VM0047, the market remains fragmented and lacks standard pricing. However, demand for high-quality removal credits is strong. Through the Symbiosis coalition—formed by Google, Meta, Salesforce, Microsoft, and McKinsey—buyers have committed to securing up to 20 million nature-based credits by 2030, at average prices between $50 and $55 each. Twelve projects are currently in line for final selection, with announcements expected by early 2026.

Outside of the tech space, ARR credit prices vary widely. Buyers from the energy sector often target prices below $20, and voluntary carbon market trades still range from $3 to $30/tCO₂e. Regional factors also matter—US-based projects, for instance, tend to land higher price tags due to costlier land and labour, often reaching $50/tCO₂e.

Methodological updates could further reshape the market. Verra’s recent revision of VM0047 clarified when developers can use census-based or land-based measurement approaches, depending on tree density per hectare. These changes may enable broader adoption of remote sensing for smaller-scale projects.

James Tansey, CEO of Carbon Done Right, welcomed the updates despite the added cost: ‘The changes in the protocol to VM0047 definitely had a big impact on the production forecasts’, he said, ‘but it appears there is still strong demand.’

As high-integrity removals take centre stage, ARR projects are evolving—and so are the expectations of those buying them.