Quick Answer: Why Does a Tonne of CO2 Cost $2 or $600?
Annual cost = Tonnes to offset × Price per tonne, applied at three representative prices: $2 for a renewable energy credit, $22 for a reforestation credit and $600 for direct air capture. The same tonne costs 300 times more at the top tier than at the bottom, because the three products are not the same thing: one claims an emission was avoided, one stores carbon in trees for decades, and one pulls carbon out of the air and locks it underground.
Offsetting 10 tonnes: renewable energy credits $20, reforestation credits $220, direct air capture $6,000.
The tiers sit close to published data. Ecosystem Marketplace's *State of the Voluntary Carbon Market 2025* reports 2024 average transaction prices of $2.67 a tonne for renewable energy credits and $20.44 for afforestation, reforestation and revegetation credits. For direct air capture, the World Resources Institute, citing CDR.fyi, reports 2024 purchase prices from about $100 to $2,000 a tonne, with an average of around $490 over several years, so the tool's $600 is at the higher end of typical.
This is a cost comparison, not advice on which credits to buy or whether a given project is sound.