1. AFOLU Carbon Credits Market: Sustainability Trends And Investment Opportunities

(MENAFN- Market Press Release) October 16, 2026 2:37 am - The carbon credits market for agriculture, forestry, and land use (AFOLU) is projected to reach $67,075.2 Million by 2035 from $7,536.8 Million in 2024, growing at a CAGR of 22.51% during the 2025-2035.

The carbon credits market for agriculture, forestry, and land use (AFOLU) is gaining momentum as businesses seek credible pathways to address greenhouse gas emissions. By rewarding verified emission reductions and carbon removals, this market creates financial incentives for sustainable farming, forest conservation, and land restoration.

According to BIS Research, the market is projected to reach $67,075.2 Million by 2035 from $7,536.8 Million in 2024, growing at a CAGR of 22.51% during the 2025-2035.

What are the Key Drivers of Market Growth?

. Corporate net-zero commitments: Companies are increasingly exploring high-quality carbon credits to complement direct emissions-reduction efforts and support climate strategies.
. Growing adoption of sustainable agriculture: Practices such as cover cropping, reduced tillage, and improved nutrient management can help improve soil health and reduce agricultural emissions.
. Investment in forestry and land restoration: Afforestation, reforestation, and improved forest management create opportunities to generate credits through carbon sequestration and forest conservation.
. Advances in carbon measurement and verification: Digital monitoring, satellite imagery, and data analytics are helping project developers measure environmental outcomes and improve project transparency.

How are Carbon Credits Used in Agriculture, Forestry, and Land Use?

Carbon credits support projects that remove greenhouse gases from the atmosphere or prevent emissions from land-based activities. Agricultural applications include regenerative farming, soil carbon enhancement, and improved rice cultivation. Forestry initiatives cover reforestation, forest conservation, and sustainable forest management, while land restoration projects protect carbon-rich ecosystems. Verified credits can provide additional income to landowners and encourage investment in sustainable practices.

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What Key Trends are Shaping the Market?

. Digital monitoring and verification: Satellite imagery, artificial intelligence, and remote sensing are improving carbon measurement, reporting, and verification (MRV), helping project developers assess environmental outcomes more efficiently.
. Long-term corporate purchase agreements: Businesses are increasingly exploring multiyear offtake agreements to secure credit supplies and support the financing of eligible land-based projects.
. Growing focus on carbon removal: Projects that capture and store carbon in soil and vegetation are attracting attention as buyers seek measurable climate benefits and stronger evidence of carbon storage.
. Emerging financing models: Partnerships, blended finance, and digital carbon registries are creating new ways to fund projects, improve traceability, and expand participation among landowners and project developers.

Which Regions are Driving Market Development?

Asia-Pacific held a leading position in the carbon credits market for agriculture, forestry, and land use in 2024, according to BIS Research. Agricultural activity, sustainability initiatives, and corporate climate commitments support regional development. North America benefits from established project developers and corporate buyers, while Europe emphasizes certification and environmental standards. Latin America and Africa also offer opportunities through forest conservation, reforestation, and land restoration initiatives.

What Challenges and Opportunities Could Influence Future Growth?

Market development depends on credit quality, transparent verification, and reliable demand. Uncertainty over land ownership, high project registration costs, inconsistent measurement methodologies, and the risk of carbon being released back into the atmosphere can delay project development and reduce investor confidence.

At the same time, advances in digital MRV, improved certification frameworks, and partnerships between agribusinesses, financial institutions, and project developers offer opportunities to improve project scalability. Supporting smallholder farmers through accessible financing and transparent revenue-sharing models could broaden participation. Strong safeguards for additionality, permanence, and accurate emissions accounting will remain essential to building market credibility.

Conclusion

The carbon credits market for agriculture, forestry, and land use is expected to expand as climate commitments drive demand for credible emission reductions and carbon removal. Sustainable farming, forest conservation, and land restoration offer opportunities for project developers, investors, and landowners. However, long-term growth will depend on transparent verification, reliable carbon accounting, and effective environmental safeguards. Strengthening market integrity will be essential to building buyer confidence and delivering measurable climate benefits.

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