- $319B Opportunity: UK forecasts carbon and nature credit markets to grow to $250B and $69B respectively by 2050.
- Market Confidence Boost: New “integrity principles” aim to tackle quality and transparency concerns, supporting business use of credits in net zero strategies.
- Global Green Finance Leadership: UK positions itself as the global hub for green finance and high-integrity carbon trading.
The UK government has launched a consultation on a set of six “integrity principles” for carbon and nature credit markets, aiming to build trust, enhance transparency, and accelerate private sector investment in climate action.
“Currently these markets are not realising their full potential, with a lack of clarity among businesses and organisations on how they can be used, and some poor practice impacting their effectiveness in delivering meaningful climate action and economic growth,” the government stated.
“There have been widespread calls from businesses and organisations for greater clarity in how to use these markets as part of their plans to reach net zero.”
The voluntary carbon and nature credit markets are expected to see significant growth as corporates use credits to balance hard-to-abate emissions while working toward absolute emissions reduction. Under the right conditions, the UK estimates these markets could reach $319 billion in value by 2050.
To address credibility gaps, the six proposed integrity principles cover expectations for credit suppliers, corporate buyers, and market participants. These include:
- Ensuring credits meet recognized high-integrity environmental criteria
- Disclosing credit usage in sustainability reporting
- Aligning credit use with 1.5°C transition plans
- Using accurate terminology in environmental claims
- Promoting cross-sector cooperation for high-integrity market growth
- Using credits only as a supplement to in-value-chain emissions reductions
RELATED ARTICLE: UK Launches World-First Nature Finance Standard to Guide Green Investment
“These principles will cement the UK as the global hub for green finance and carbon markets,” said UK Climate Minister Kerry McCarthy.
“This is an opportunity to deliver on the climate crisis and drive investment and growth in the UK as part of our Plan for Change.”
The consultation remains open until July 10, 2025.
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