RECCESSARY and EnergyOMNI co-hosted the “New Energy and Carbon Market Business Forum,” bringing together industry leaders and experts to explore global carbon market trends and industry challenges. (Photo: RECCESSARY)
Carbon market is regaining momentum as it enters the “carbon credit 2.0” era, driven by strengthened quality standards and the accelerated development of carbon removal technologies.
Speaking at the “New Energy and Carbon Market Business Form” co-held by RECCESSARY and EnergyOMNI on June 19, Sherry Hu, carbon market analyst at RECCESSARY, said that the motivation behind corporate carbon credit procurement is gradually shifting from policy and regulatory compliance to asset allocation and long-term net-zero strategies.
Voluntary carbon market rebounds: 5 roles for businesses
Corporate carbon credit procurement falls into two categories: regulatory compliance and supply chain requirements, or companies’ own decarbonization needs.
According to Nadine Lim, international policy analyst at the International Emissions Trading Association (IETA), the number of carbon pricing mechanisms has grown significantly over the past two decades, with carbon taxes and emissions trading system now covering nearly a quarter of the global emissions.
While carbon pricing was initially concentrated in Europe and the U.S., Asia is expected to become a key growth driver in the coming years, as more countries consider implementing carbon taxes or emissions trading schemes.
Although the voluntary carbon market saw a decline in both trading volume and value following the carbon credit quality controversies in 2021, it has begun to regain momentum since last year and is expected to recover further, said Hu, cited a report by the Ecosystem Marketplace. Moreover, global demand for carbon credits remains resilient, with usage reaching 182 million metric tons in 2024.
Hu pointed out that the carbon market is undergoing a transition toward the “2.0 era,” with stricter standards driving improvements in the quality of international carbon credits. Yet, it remains difficult to predict when the market will reach a clear inflection point for recovery, she added.
According to Lim, numerous initiatives have been launched in recent years to improve the quality of carbon credits. These include the Integrity Council for the Voluntary Carbon Market (ICVCM), which evaluates carbon credits methodologies and programs based on ten core carbon principles. Meanwhile, many companies have also collectively voiced their expectations for high-quality carbon credits.
For Taiwanese companies seeking to participate in the carbon credit market, Hu outlined five potential roles, including strategy management, operations management, project development, data-driven solutions, and matchmaking.
For example, Microsoft has strategically used its capital and has become the world’s largest investor in carbon removal, approaching the market from an investor perspective by funding startups.
Amazon has also identified growing demand in the carbon credit market and introduced carbon credit procurement services to help businesses purchase carbon credits through standardized processes. Hu noted that while there are currently no comparable examples in Taiwan, this could serve as a reference for future carbon credit supply management.
.png)
Although Taiwan’s carbon credit supply remains limited and domestic demand has yet to fully emerge, Taiwanese companies can still secure opportunities within the carbon credit supply chain. (Photo: RECCESSARY)
$16 trillion in carbon removal: Taiwan’s chance to join
In terms of carbon credit type, carbon removal credits are commanding increasingly higher premiums compared to reduction credits, such as those from renewables or forest preservation projects. Over the past two years, global carbon market trends show that the price of carbon removal credit has surged by 381%, reaching USD 19.5 per ton, reflecting strong market interest in carbon removal solutions.
According to Hu, the carbon removal market can be divided into technology-based and nature-based solutions. In the nature-based category, the price of biochar has reached USD 200 to 300 per ton. In technology-based solutions, such as direct air capture, prices range from USD 100 to 700 per ton, with some cases even exceeding USD 1,000. In contrast, nature-based reduction projects, such as forest preservation, are priced significantly lower at just USD 10 to 20 per ton. This highlights the wide price gap across different types of carbon credits in the market.
With significant business potential in the global carbon removal market, Tank Chen, co-founder of CDR.fyi, said that carbon removal solutions must demonstrate additionality and ensure the long-term storage of carbon dioxide. (Photo: RECCESSARY)
CDR.fyi, a carbon removal tracking platform, covers more than 90% of data in the global carbon removal market. According to Chen, the average price of carbon removal credits reached USD 320 per metric ton in 2024, with the total market value approaching USD 2.5 billion. As of May 2025, annual purchase volumes have exceeded 15 million metric tons.
There is significant business potential in the carbon removal market as large amounts of carbon dioxide have accumulated in the atmosphere since the Industrial Revolution. Over the past three years, private funding in the sector has reached a high as USD 3 billion, Chen said. The number of suppliers involved in actual transactions rose to 137 in 2024, while total deliveries rose by 120%. Procurement volumes in the carbon removal market also increased by 78% to 8 million tons.
According to estimates by McKinsey, achieving the carbon removal volumes required for net-zero will need investments of about USD 6 trillion to 16 trillion by 2050. With this USD 16 trillion opportunity, Taiwan could also play a key role in the global carbon removal market, including as a technology developer for components, project developers, value chain suppliers such as those in the oil and gas sector, as well as financiers and buyers.
While there are currently no carbon removal buyers in Taiwan, companies could start considering what roles they might play in the carbon removal supply chain, said Chen.
Verification and compliance are key to carbon removal credibility
Biochar is currently one of the most prominent carbon removal solutions. In Taiwan, TCHAR is the only company certified by the European Biochar Certificate (EBC) and is also the first in Asia to obtain certifications for agricultural and industrial applications under EBC, Carbon Sink Integrity (CSI), and Forest Stewardship Council (FSC) standards.
According to Peter Peng (彭俊明), founder and general manager of TCHAR, the key to biochar lies in maintaining high standards and verifiability.
EBC certification covers the entire process, including feedstock sourcing, manufacturing procedures, and material safety. Every batch is recorded and subject to rigorous digital monitoring, reporting, and verification (dMRV), with real-time data uploaded to European cloud platforms to ensure full traceability and trust across the supply chain.
Thanks to this level of transparency, TCHAR has verified that each gram of its biochar delivers a carbon reduction benefit equivalent to -2.625 kilograms of CO2. Peng emphasized that full legal and regulatory compliance is fundamental throughout the process.
High standards and verifiability are key to biochar, said Peter Peng, founder and general manager of TCHAR. (Photo: RECCESSARY)
“The key lies in strict regulatory compliance, where there is no room for ambiguity,” said Peng. Commenting on whether Donald Trump’s return to office might have an impact, Peng said that TCHAR has focused on the European market from the outset, where environmental and safety standards are generally higher than those in the U.S.
He pointed out that all industries have the potential to participate in carbon removal. Biochar, for instance, can be used in agriculture for soil improvement. If aligned with the United Nations Sustainable Development Goals (SDGs), its carbon sink value can reach as high as EUR 300 (USD 353) per ton.
Biochar can be also incorporated into materials such as plastics, laptops, sport equipment, and cosmetics to enhance brand image—something that traditional advertising cannot achieve. Peng noted that only Taiwan is capable of materializing biochar into carbon reduction products within one hour, due to its highly concentrated and well-integrated industrial supply chain.
According to Chen, carbon removal currently accounts for only 6% of the carbon market. However, as the supply and price of traditional energy-related carbon credits continue to decline, the market is expected to gradually shift toward higher-quality, technology-based or nature-based solutions. Chen predicts that the market’s turning point will come between 2030 and 2035, a trend that’s worth watching.
.jpg)
