This report investigates the potential significance of the UK voluntary carbon market, how it is structured and explores the current state of supply. We believe understanding the maturity of this market is important in informing buyers about the potential risks and opportunities for the UK based carbon credits.
We have analysed and aggregated data from the UK Woodland Carbon Code (WCC) and the UK Peatland Code (PC) which is made publicly available through the IHS Markit Environmental Registry. The report also includes proprietary data from Abatable based on conversations with a network of project developers and key stakeholders.
Why focus on the UK voluntary carbon market?
The UK government has one of the world's most ambitious legally binding targets of reducing its 1990 emissions level by 78% by 2035, this is equivalent to a 34% reduction relative to the UK’s 2019 emissions level. As of April 2022 the UK became the first G20 nation to enshrine climate-related financial reporting into law.
Such legislation is increasing the pressure on UK companies to create net-zero strategies. 60% of the FTSE 100 are already committed to reaching net-zero by 2050 under the UN’s Race to Zero pledge. Many UK companies are looking to offset their hard-to-abate emissions with UK projects that are tangible to stakeholders.
The development of the UK Voluntary Market is integral to both the UK’s legal requirement to reach its climate targets as well as UK companies to meet their own targets.