Carbon Credit Market Trends: Price Gaps and the Shift Toward High-Integrity Removals

The carbon credit market is splitting into two distinct tiers. Low-quality avoidance credits are losing value, while high-integrity removals, such as direct air capture and biochar, are commanding premium prices due to their durability and verifiable impact on the atmosphere. Compliance markets like the EU ETS continue to provide a price floor, while the voluntary market is shifting toward long-term offtake agreements. This transition reflects a growing corporate demand for carbon removals that actually deliver permanent sequestration rather than vague avoidance claims.