Carbon Credit Prices: Removals vs Avoidance
By Sustainability Awakening • Dr. Ahmad Mahmood
The market in 2024
Less trading, steady demand
Volume traded−25%
Average price−5.5%
Credits retired182 Mt
Source: Ecosystem Marketplace, 2025
Quality pays
Removals cost more
381%
average premium for removal credits over reduction credits in 2024.
Source: Ecosystem Marketplace
Know what you buy
Avoidance vs removal
Avoidance credits stop emissions, like saving forests or cleaner stoves. Removals pull CO₂ out of the air.
Nature-based removal
Tree planting is pricier
$24/t
for high-quality ARR credits in Sept 2025, up from $14 in January.
Source: Sylvera
Durable removals
Break-even prices
Biochar$143/t
Rock weathering$272/t
Direct air capture$670/t
Source: CDR.fyi survey 2025
A thin market
Few big buyers
32
buyers had paid over $500 a tonne for carbon removal by early 2025.
Source: CDR.fyi
Integrity label
Look for the CCP mark
The ICVCM CCP label marks approved methods, from REDD+ and ARR to biochar and engineered removals.
Article 6.4
First UN credits issued
Feb 2026: a Myanmar cookstove project. Credits came out 40% lower than under the old CDM rules.
Source: UNFCCC
Oxford Principles
Four steps to credible use
1Cut first, buy quality
2Shift to removals
3Make them durable
4Back innovation
Source: Univ. of Oxford, 2024