Asia Pacific Overtakes Europe as World’s Largest Source of New Carbon Credit Buyers
Asia-Pacific corporate demand for carbon credits shifted the region’s market dynamics in 2025. AlliedOffsets reported that businesses headquartered in APAC overtook European companies to become the largest source of new carbon credit buyers globally. While the region previously functioned primarily as a net-supplier of credits, APAC-based firms accounted for about one-third of new buyers in 2025, rising from approximately one-fifth in 2020. Carbon Pulse corroborated this shift, noting that the region’s longstanding market dynamics made an about-face as total buyers surpassed Europe’s for the first time.
Shrinking Global Supply Contrasts With Surging Corporate Demand
Data from AlliedOffsets indicates that the proportion of worldwide carbon credit generation originating from the Asia-Pacific dropped from roughly half in 2021 down to approximately 30% by 2025.
Over the same period, the region’s share of global credit retirements dropped from 42% to 33%. These declines occurred while issuance and retirements expanded in other parts of the world. Despite the shrinking supply share, regional activity in offtake agreements accelerated.
Project Concentration and Varied Credit Pricing Across Regional Markets
Nature-based carbon removal supply in the region remains heavily concentrated among a small group of developers. Projects issued roughly 13.2 million nature-based removal credits in 2025, with Nepal’s Ministry of Forests and Environment supplying 20%, Terra Carbon providing 14%, Permian Global contributing 12%, and Woodside Burrup accounting for 7%. Pricing data from the report indicate that APAC credits do not universally trade at a discount.
Article 6 Frameworks and Aviation Sector Compliance Drive New Trading Routes
International cooperation under Article 6 of the Paris Agreement is opening fresh compliance pathways across APAC. AlliedOffsets projects that nations across the region have the potential to deliver 38.7 million internationally transferred mitigation outcomes by the year 2030 based on their revised nationally determined contributions, with Papua New Guinea alone responsible for 12.9 million tonnes. Papua New Guinea leads this potential supply with 12.9 million tonnes, followed by Cambodia at 10.5 million and Jordan at 7.9 million. Aviation compliance under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is generating steady demand.
Indonesia Reopens Trading While Regional Retirements Lag Behind New Issuance
Indonesia’s carbon credit supply rebounded following the reopening of international trading under Presidential Regulation 110/2025.
Frequently Asked Questions About the APAC Carbon Market Shift
What caused Asia Pacific to overtake Europe in carbon credit buyers?
APAC-based businesses accounted for about one-third of new buyers in 2025, up from one-fifth in 2020.
How many ITMOs could APAC supply by 2030?
AlliedOffsets estimates that APAC countries could supply 38.7 million ITMOs in 2030 under their updated nationally determined contributions, with Papua New Guinea accounting for 12.9 million tonnes.
Which airlines led APAC compliance under CORSIA?
The aviation sector is influencing APAC’s carbon market through the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
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