The UK government has announced the launch of a public consultation on a new set of “integrity principles” for carbon and nature credits, aiming to enhance trust and drive the growth of voluntary environmental markets. The initiative is part of the UK’s broader strategy to establish itself as a global leader in green finance and sustainable investment.

With demand for high-quality carbon and nature credits expected to surge, the UK projects market growth to reach $250 billion by 2050 for carbon markets and $69 billion for nature markets, provided the right conditions are in place. These credits are increasingly used by companies to offset hard-to-abate emissions or as interim solutions while working toward absolute emissions reductions.

However, the current voluntary market remains largely unregulated and fragmented, making it difficult for participants to distinguish between high- and low-integrity projects due to inconsistent data and transparency.

To address these concerns, the UK is proposing a framework of six integrity principles aimed at ensuring transparency, credibility, and accountability in credit use and trading. These include:

1. Suppliers must ensure that credits meet recognized high-integrity standards and deliver real environmental benefits.
   

2. Buyers should measure and disclose their intended use of credits within sustainability reporting.
   

3. Credit users should integrate credits into broader transition strategies aligned with the 1.5°C target of the Paris Agreement.
   

4. Claims related to credit use must be accurate and reflect the true environmental impact of an organization or product.
   

5. Market participants should collaborate to scale high-integrity markets.
   

6. Credits should supplement—not replace—ambitious climate actions within companies’ value chains.

UK Climate Minister Kerry McCarthy emphasized the significance of the initiative:

“These principles will cement the UK as the global hub for green finance and carbon markets. 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 is open until July 10, 2025, inviting input from businesses, civil society, and other stakeholders to help shape a robust and credible carbon and nature credit market framework.

Stay ahead in sustainability compliance with Global PCCS —where expert insights meet the latest regulations. Unlock a future where compliance fuels sustainability, helping your business thrive in a greener, well-regulated world. For more information, contact us at info@globalpccs.com