Key Carbon Market Trends and Challenges for Project Developers in Mexico

Background to the Mexican carbon market 

Mexico’s voluntary carbon market is growing. 2025 has already seen a record 550% surge in credit issuances compared to last year. As the AlliedOffsets team heads to the Mexico Carbon Forum in this September, here’s what you need to know about the trends, challenges, and opportunities shaping this market. 

Mexico carbon market trends 2025

There are 835 carbon market projects in the voluntary sector in Mexico as of August 2025. Over 50% of all projects are removal projects, primarily from the forestry and land use sector, and almost 50% of all projects are currently registered under the Climate Action Reserve registry. 

Projects by Registration Year, Mexico 

Projects by registry, Mexico 

Carbon Credit Issuances Surge 550% in 2025

In the last few years we’ve seen a big increase in the number of issuances from Mexican projects. In 2025 so far we’ve seen over 10 million credits issued, which represents a 550% increase compared to the same period last year. 

Common challenges for project developers in the carbon market in Mexico 

Project developers across Mexico and LATAM face challenges from price transparency to policy risk. Here are some of the key challenges our clients have expressed to us, and how AlliedOffsets helps: 

Price benchmarking and discovery

• Market uncertainty and lack of transparency around pricing trends. 
• Limited visibility into comparable projects or historical sales.
• The lack of data on other project developers and pressure from buyers can lead to undervaluation of credits.

How AlliedOffsets data has supported project developers with price benchmarking and discovery

Project developers in LATAM are using AlliedOffsets data to benchmark their portfolio against competitors in the same region, country and sector. This helps project developers to set fair and competitive prices for their credits.

Buyer lead generation

• Lack of transparency in the market makes it increasingly difficult getting in front of the right buyers, at the right time. 
• Difficulty securing long-term agreements for project financing due to reliance on personal networks for business development.

How AlliedOffsets data has supported project developers with buyer lead generation

Identify the right buyers for your credits based on location, sector, price, and co-benefits. Access contact information on buyers for your credits.

Assess policy developments & risk

• Stay updated on regulatory changes locally and globally to manage uncertainty.
• No standardized method to evaluate political and policy risks across countries, increasing exposure for developers
  
  

How AlliedOffsets data has supported project developers access policy development news and risk assessments 

Identify and manage country specific political risk factors and policy developments to support forward planning.
Stay informed on the latest policy developments and convergence between the voluntary and compliance market.

Forward planning and outlook 

• Uncertain future demand due to shifting ESG priorities and evolving legal frameworks at global and national levels makes long-term planning and investment challenging.
• Limited market visibility on forecasted trends complicates raising capital for project development and operational expansion.

How AlliedOffsets data has supported project developers with forward planning and outlooks 

Forecast demand and prices in the future to support financial planning. Identify where the forecasted demand is coming from and what companies are likely to buy your specific credits, and for what price.

Want to explore more of our country specific insights and policy developments? Set up a call with our expert team.