Carbon credit retirements declined in the third quarter of 2026 even as the value of the market increased due to rising prices, according to a new report by carbon market data and ratings provider Sylvera.

Retirements totaled 30.6 million credits, down from 33.7 million a year earlier. Yet the value of those retirements climbed to $211.8 million from $190.6 million, as the average price paid per credit rose to $6.92 from $5.66.

Investment-grade credits rated BBB or higher accounted for 18% of rated retirement volume but 42% of rated market value, highlighting the premium attached to higher-rated credits.

Renewable energy projects, including wind, hydro and solar, represented 41% of all retirements, their largest share in more than three years. Sylvera’s methodology rates such projects C or below because of concerns over additionality.

Renewables consequently represented 76% of B/C/D-rated retirement volume in the quarter. REDD+ credits accounted for 18% of retirements, while agriculture-related credits more than tripled their share from the previous quarter.

The forward carbon removal offtake market also remained weaker than a year earlier. Announced year-to-date volume fell 53% to 32.7 million tonnes, largely reflecting an 85% reduction in purchases by Microsoft.

Excluding Microsoft, however, offtake volume nearly tripled to 23 million tonnes from 8 million tonnes. Woodside became the second-largest offtaker, while Alphabet moved into third following agreements involving Terradot and Mitti Labs.

“The early signs of diversification – new buyers, new project types and particularly off the back of recent Google announcements – are very encouraging,” Sylvera CEO Allister Furey said.

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