The UK carbon credit market has the potential to significantly boost the economy, generating up to $1.334 billion (£1 billion) in tax revenue and 135,000 skilled jobs by 2035, according to new research from BeZero Carbon.
This is almost 1.5 times the amount raised by the digital services tax, and the resulting new jobs are expected to position the UK as a global leader in carbon markets.
The report, titled “From Risk to Reward” and published on Wednesday, highlights how the carbon credit industry could create employment across various sectors.
Of the 135,000 jobs, 80,000 could be in nature-based carbon projects, such as roles for ecologists, farmers, and foresters.
Another 30,000 jobs could be in engineered carbon removal projects, like Direct Air Capture (DAC) facilities, employing engineers and construction workers.
An additional 25,000 roles could emerge in market infrastructure, including jobs in analysis, law, and insurance.
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The growth of the carbon credit market could channel $13.3 billion (£10 billion) per year into high-impact carbon projects, nearly matching the UK Government’s 2024 international aid budget of $14.6 billion (£11 billion).
This influx of investment would not only help the UK meet its climate goals but also support environmental restoration globally, according to BeZero Carbon.
By 2035, the UK could exceed its target for domestic carbon removals, reaching close to 20 million tonnes, five years ahead of schedule.
For the UK to realize this potential, BeZero Carbon recommends integrating carbon removals into the UK Emissions Trading Scheme (ETS), incentivizing businesses to adopt carbon credit frameworks, and introducing targeted regulations.
“The UK is a long-standing hub for carbon markets given its science, finance, and policy base. With careful regulations and decisive government guidance, it can be the global capital,” the company’s CEO, Tommy Ricketts, said in a comment.
“BeZero Carbon’s research shows that carbon markets can also support jobs and economic growth for the UK, while channelling the private finance needed to tackle the climate crisis and speed up the global clean energy transition through our Plan for Change,” UK Climate Minister Kerry McCarthy added.
