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In recent years, we at AlliedOffsets have observed an increasing concentration of corporate demand in the voluntary carbon market (VCM) among a relatively small group of established participants. Looking at the top ten buyers by volume across both offtakes and on-registry retirements since 2022, seven appear more than once.
An analysis of the Herfindahl-Hirschman Index (HHI), which measures market concentration on a scale from 0 to 1, suggests that purchasing activity across the VCM remains relatively well distributed overall. The index peaked at 0.1 in 2025, still a low level of concentration, up from 0.043 in 2024 and 0.032 in 2023. This increase comes despite a growing number of distinct buyers over the same period. Together, these trends highlight a key dynamic: while participation is broadening, a small group of companies continues to account for a disproportionate share of total volume.
AlliedOffsets’ analysis of likely carbon credit buyers shows that many share several key characteristics. These help explain both the primary drivers of voluntary corporate activity and why certain organizations consistently account for a large share of retirements and offtakes.
Established buyers continue to drive market activity
Across leading buyers, one defining trait stands out: recent market activity. The majority of companies appearing among top buyers have participated in the VCM within the last two years.
This reflects a broader pattern observed across AlliedOffsets research. As the VCM matures, activity tends to remain concentrated among organizations that have already defined the role of offsetting within their broader decarbonization strategies, many of which use 2030 as a key milestone for emissions reductions and renewable energy adoption.
Recent participation is particularly important. Companies that have already engaged in carbon markets are more likely to be working toward the same climate goals and to retain the internal capacity required to source and retire credits. They typically have established procurement processes, internal expertise, and clearer climate strategies, all of which support continued participation.
How company purpose shapes VCM engagement
Many organizations currently active in the market and expected to remain so, also position carbon market engagement as part of their broader corporate purpose. Several are actively investing in and scaling carbon dioxide removal (CDR) technologies. Companies such as JP Morgan Chase, Google, and Amazon have made their ambition to use the VCM to catalyze engineered climate solutions a visible part of their public identity.
At a smaller scale, mission-driven organizations such as EthicDrinks, which produces environmentally friendly “beyond organic” wines, are emerging among likely new entrants. Similarly, a number of B-Corp companies show a medium likelihood of entering the market. A key counterpoint, however, is that smaller organizations may face greater resource constraints when accessing the VCM.
While the relationship between company purpose and VCM participation is not explicitly quantified, it remains a valuable lens for understanding how organizations position themselves and their climate strategies.
Ease of abatement as a shared characteristic
Another common factor among leading buyers is the relative ease of abatement.
For many organizations, operational emissions reductions are more achievable compared to sectors facing complex decarbonization challenges. This enables them to pursue internal reductions while also using carbon credits to address residual emissions as part of a broader climate strategy.
Early results from AlliedOffsets modeling suggest a strong presence of companies from Technology and Telecommunications, Professional Services, and Financial Services among both returning buyers and potential new entrants. In addition to being easier to decarbonize, these sectors tend to generate higher profits relative to their emissions, making carbon credit procurement a more practical option compared to more carbon-intensive, lower-margin industries.
Why energy companies remain significant buyers
Energy companies represent a notable exception to these trends.
Despite operating in sectors that are both highly polluting and difficult to abate, energy companies consistently rank among the top market participants by retirement volume. This is partly driven by exposure to compliance schemes in countries such as Chile and Colombia, which helps explain the frequent and significant activity of buyers like Terpel and Primax Colombia.
Additionally, many energy companies act as intermediaries, meeting demand for lower-carbon fuels from their customers. For example, NW Natural offers offsetting services to retail gas customers as part of its Low Carbon Pathway plan, while companies such as Good Energy integrate carbon solutions into their offerings.
These factors create strong and relatively predictable incentives for participation in carbon markets, even where operational decarbonization remains challenging.
What this reveals about demand in the voluntary carbon market
The characteristics shared by leading buyers highlight an important feature of the VCM.
A significant proportion of market activity by both value and volume is driven by large organizations with established carbon procurement strategies and deliberate positioning as early movers, rather than by entirely new entrants each year. However, understanding the broader drivers of participation is essential for identifying where future corporate demand may emerge and how the structure of the market itself may evolve.
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