The top 8 sectors that can produce the most carbon credits today are forestry and renewable energy.
According to Ecosystem Marketplace (USA), there are around 170 types of projects that can create and sell carbon credits. These are grouped into 8 main categories, based on the methods used to reduce or remove emissions. Ecosystem Marketplace is a platform for information and research on environmental markets, including carbon credits, ecosystem services, and sustainable finance.

Agriculture: focuses on sustainable management of farmland and grassland, including capturing carbon in soil through sustainable practices, and managing methane emissions from livestock and crops. For example, Vietnam has potential to sell carbon credits by reducing methane emissions in rice farming.
Chemical/Industrial Processes: focuses on removing or reducing greenhouse gases generated or used in industrial processes.

Energy Efficiency/Fuel Switching: reduces fossil fuel use by improving the efficiency of industrial processes and heating and lighting systems. These projects also switch power and heat production from fossil fuels to biomass or lower-carbon fuels like natural gas.
Forestry and Land Use: includes all nature-based solutions except those on farmland and grassland. Forestry projects generate carbon credits by reducing emissions through deforestation prevention, better forest management, or removing CO2 from the air through new vegetation.
Household/Community Devices: these projects reduce carbon emissions at the household or community level. Common examples include distributing energy-saving cookstoves and water purifiers, which reduce greenhouse gas emissions by decreasing deforestation for fuel in rural areas. Other projects include improving community energy efficiency and building biogas infrastructure to provide heat and cooking fuel without fossil fuels in rural areas.
Renewable Energy: these projects reduce carbon emissions by using renewable energy instead of fossil fuels. Common types include generating power and heat from wind, solar, hydro, geothermal, biogas from organic waste, and renewable biomass.
Transportation: these projects cut emissions by improving transportation system efficiency, such as developing public transit and electric vehicles.

Waste Management: focuses on reducing greenhouse gas emissions by capturing and disposing of methane from decomposing organic materials, recycling to avoid emissions from new production, and composting to prevent methane formation.
Forestry and renewable energy have been the top sectors for carbon credit transactions over the past four years, with renewable energy leading in 2020. However, since 2021, forestry has consistently been the top sector, accounting for over 30-45% of the global carbon credit market each year.
Other sectors like industrial processes, energy efficiency, and household/community devices have smaller credit volumes. However, agriculture is a “rising star,” with carbon credits steadily increasing over the past four years.
Carbon credits from forestry are among the most valuable, averaging $9.72 per credit in 2023. Previously, agriculture had the highest prices from 2020-2022, but its price dropped to $6.51 per credit in 2023.
The value difference between sectors is due to varying impacts and costs. For example, a large-scale wind project in Turkey has national benefits like job creation and energy independence, while a cookstove project in Rwanda has direct benefits for local communities, such as improved health and reduced deforestation. This higher impact often correlates with higher carbon credit prices.
Forestry projects command high prices because they offer long-term benefits and can store CO2 for decades. They also have additional value, like biodiversity conservation and improving local livelihoods, making them appealing for companies aiming to support both environmental conservation and community development.
State of Vietnam Market