Forests play a massive role in fighting climate change. They capture atmospheric carbon, helping offset greenhouse gas (GHG) emissions. However, with nearly 50% of global GHG emissions released in just the past 40 years, forest-based climate solutions need rapid scaling. Let’s understand the current scenario of the forest carbon credit market here. 

The Need for Credible Forest Carbon Credits

Tropical forests store over half of the world’s above-ground carbon in their trees and vegetation. Forbes evaluated that even a small decline, like a 1.5% yearly loss, can wipe out 15% of forest biomass in just a decade. That’s why credible, science-backed carbon credits are vital.

However, many forest-based carbon credits have faced scrutiny. Industry experts have questioned the value of these credits, saying they’re unreliable or even useless. However, there’s one company that wants to change that perception by providing transparent, science-backed insights.

Space Intelligence, the UK-based climate tech company, is tackling this problem by using cutting-edge satellite technology to protect forests and boost the credibility of carbon credits. The firm combines high-quality nature data with digital monitoring tools to reduce risks and increase trust in environmental finance systems. Their goal is to help scale up funding for forest conservation and reforestation efforts.

Space Intelligence: Turning Forests into Climate Action

In 2009, Dr. Murray Collins and Professor Ed Mitchard manually measured over 25,000 trees in Africa to study forest carbon. It was slow and costly. Mitchard turned to satellite data, earning a Ph.D. and later becoming a professor.

They launched Space Intelligence in 2017, using tools like LiDAR and SAR to monitor forests remotely. Their expert knowledge and custom software helped transform public satellite data into trusted carbon insights.

This data will help verify billions of dollars’ worth of nature-based carbon credits, giving the market more confidence in these projects.

Clear Data for Credible Carbon Credits

Their clients include carbon credit buyers, developers, and certification bodies. It helps these players by remotely mapping project areas, establishing baseline references, and measuring actual carbon impact over time.

More importantly the company has also been hired by carbon credit registries to provide national-level baseline data. These baselines help verify how much carbon has been stored or lost over time. The company has created such datasets for countries like Kenya, Tanzania, Argentina, and Indonesia which are the key players in the global carbon market.

Key Role in Europe’s New Anti-Deforestation Laws

Space Intelligence has partnered with Intercontinental Exchange (ICE), a major US-based financial firm that helps bring more transparency to global energy and commodity markets. ICE trades goods like coffee and cocoa. These are now under the spotlight due to the EU’s new deforestation law.

The EU’s Regulation on Deforestation-Free Products (EUDR) started on June 29, 2023. It targets products linked to deforestation. This includes cocoa, coffee, palm oil, soy, rubber, wood, cattle, and items made from them like chocolate, furniture, leather, and tyres.

The goal is simple. The EU wants to stop buying and selling goods that harm forests. Companies must now prove that their products didn’t come from land that underwent deforestation and degradation.

In December 2024, the EU gave companies more time to adjust. Big and medium companies will have to follow the law by December 30, 2025. Small ones have time until June 30, 2026.

The EUDR aims to:

• Keep deforestation out of EU supply chains
• Cut carbon emissions by 32 million tonnes every year
• Stop forest loss caused by farming

To help ICE follow the law, Space Intelligence won a significant contract. They will provide land cover data that shows comprehensive forest history.

Thus, by winning this deal, Space Intelligence is now a vital part of Europe’s forest protection efforts.

Space Intelligence Brings Forest Data to Your Fingertips

Recently, the company teamed up with California-based Upstream Tech to make its data easier to access. Their insights are now available on the Lens platform, which allows users to view landscape changes, monitor trends, and create reports very easily.

Notably, the company’s land cover and land change data, available in over 45 countries at 10m to 20m resolution, is now integrated into Lens. Users can:

• Easily assess project sites
• Get automated change alerts (e.g., deforestation or fire damage)
• Access audit-grade datasets
• Generate detailed reports with one click

This partnership makes high-quality geospatial data easier to access and helps speed up and improve the accuracy of monitoring, reporting, and verification (MRV).

The Future of the Forest Carbon Credit Market

The global carbon credit market is growing fast. Precendence Research data showed that it was valued at $669.37 billion in 2024 and is expected to jump to $933.23 billion in 2025. By 2034, it may reach nearly $16.4 trillion, growing at a CAGR of 37.68%.

This sharp rise is pushed by stronger climate rules and more companies trying to cut greenhouse gas (GHG) emissions. In 2024, Europe led the market in revenue.

Additionally rise in reforestation and agroforestry projects, along with stronger government carbon regulations is also boosting the carbon credit market.

Global Market Insights revealed that this January, scientists found high levels of methane leaking from the Antarctic seabed. This discovery raised alarms about climate risks and boosted interest in carbon offset projects like forestry credits. As nature-based solutions gain more importance, the demand for reliable carbon credits continues to rise.

• The forest carbon credit market was worth $25.8 billion in 2024. It could grow to $105.2 billion by 2034, expanding at 15.7% CAGR.

Furthermore, this sector has embraced AI, ML, and blockchain to verify and improve the transparency of carbon data. As mentioned before, companies like Space Intelligence are using drones and satellites to track land use and tree cover.

Forests absorb a huge amount of carbon dioxide, and they are our saviors against climate change. That’s why Space Intelligence uses satellite tech and ecological data to highlight their true value. This clear evidence builds trust in carbon markets and forest carbon credits.  Additionally, it encourages smart investments in forest protection. In the end, the path to climate action becomes more effective.