How to unlock billions in carbon market demand

5 challenges the largest carbon credit buyers have solved

What’s it really going to take to scale carbon markets to the gigatonnes of annual capacity we’ll need to meet our climate goals? You may think the biggest obstacles to that kind of demand for carbon credits are on the policy side of the equation. Patch has talked to hundreds of buyers who identify a different set of challenges that are just as urgent — but potentially more within their control to solve.

The five phases of the buyer journey have unique challenges

If enough buyers can solve these friction points, we’re convinced they can rapidly accelerate the pace at which private capital can flow to climate solutions with integrity.

Test your knowledge of the challenges that carbon credit buyers face

01

The most sophisticated buyers of carbon credits have dedicated carbon teams building and executing their strategies.

Q: What percentage of the top carbon credit purchasers have a dedicated carbon team?

A: We spoke to 100 of the top buyers. Only 15% have a dedicated carbon team.

• More than 75%
• 50–75%
• 25–49%
• Less than 25%

02

The most sophisticated carbon credit buyers source and compare hundreds of projects before purchasing.

Q: How many registered projects are there in the voluntary carbon market in 2024?

A: In 2024, there are 2,085 registered projects that have issued 231 million credits

• More than 100,000 projects
• 10,000–99,000 projects
• 1,000–9,000 projects
• Less than 1,000 projects

03

Before purchasing any given project, the top buyers engage in deep and often lengthy due diligence processes.

Q: How long does it take the average team to complete diligence for a portfolio of 11 projects?

A: It takes the average buyer 53 hours to complete a comprehensive due diligence review.

• More than 40 hours
• 30–39 hours
• 20–29 hours
• Less than 20 hours

What you’ll learn

Patch has aggregated data from 400+ conversations with carbon credit buyers, plus information generated within the Patch platform. This report contains:

• The five obstacles to unlocking at-scale demand for voluntary carbon credits
• Anonymized, candid quotes from buyers on the challenges they face during their process
• Statistics from the Patch platform on the current state of carbon markets
• Expert analysis on how buyers can overcome the buy-side obstacles to scale a thriving voluntary carbon market