Sustainable Markets: Insights into Europe's Environmental Trends

As two leading players in the voluntary carbon market, AlliedOffsets and ACX (AirCarbon Exchange) are partnering to provide you with insights into the latest developments, project activities, pricing trends, project locations, and project statuses within the voluntary carbon market.

Our third edition zooms in on the EU and offers a comprehensive overview of the country’s carbon offset projects, top buyers and overall issuances and retirements.

Regional Project Overview

EU

The voluntary carbon market (VCM) in the EU has experienced growth with yearly retirements increasing since 2021. As of now, there are almost 2,000 active projects and another 2,284 pending projects in the EU, yet only 3 projects in Greece.

Forestry and Land Use projects are leading the way in the EU so far, with a majority of projects dedicated to this sector, followed by renewable energy related projects.

Several prominent companies are actively participating in the EU's voluntary carbon market, with some of the top buyers including Toucan Token, ESWE Versorgungs, Bulb Energy and Rabobank.

Projects by status

Project by registry

Projects by sector

Issuances & retirements in Europe

Retirements over time

Comments from the ACX Team

The EU Emissions Trading System (EU ETS), underpinning the EU's carbon market, employs a cap-and-trade mechanism to reduce emissions across various sectors, highlighting the EU's commitment to achieving climate neutrality by 2050. This goal is further supported by the European Green Deal, an ambitious strategy aimed at reducing carbon emissions through targeted policies and investments.

While the VCM market is still immature in Greece, it is likely to evolve into a forward market over the next few years, currently reflecting EU market prices. Interestingly, the Greek shipping industry/owners, excluding those in Greece, are the largest VCM participants currently. The collaboration between ACX and Athens Exchange Group (ATHEX) represents a significant step forward for Greece's transition toward a low-carbon economy. This partnership aims to develop a transparent market for Voluntary Carbon Credits by leveraging ATHEX's extensive network and expertise, thereby enhancing price transparency and fostering the growth of Voluntary Carbon Markets in Europe. This initiative aligns with the EU's climate goals, supporting local carbon reduction efforts, and paving the way for integrating Compliance and Voluntary Carbon Markets within the EU's regulatory framework. Moreover, it plays a crucial role in ACX's global expansion strategy.

Additionally, the European Climate Law reinforces the EU's path to climate neutrality by legally establishing emissions reduction targets. This law serves as a framework to encourage investment in green technologies, complementing efforts like the ACX-ATHEX collaboration to establish a transparent and effective carbon credit market.