As the world races to meet urgent climate targets, voluntary carbon markets (VCMs) are gaining momentum as a vital tool to accelerate decarbonisation and unlock private climate finance
With its current consultation on the Voluntary Carbon Market, the UK Government has an opportunity to shape a high-integrity market that delivers real impact for the climate, communities, and businesses. By stepping up as both a regulator and an enabler, the UK can lead the way in building a trusted, scalable carbon market that supports global net-zero goals.
Why government leadership matters
The UK Government has a unique opportunity to lead the world in shaping a high-integrity carbon market that delivers outcomes for climate, communities, and biodiversity.
By setting a clear policy framework, supporting robust standards, and incentivising corporate leadership, the Government can unlock private finance at scale. This leadership gives businesses the confidence to act, knowing that the incorporation of carbon credits into net-zero pathways is recognised, credible, and aligned with national and international climate goals.
At the same time, this trust translates into steady, predictable demand, which ensures critical revenue streams for project developers on the ground. Whether it’s forest conservation, clean cookstoves, or emerging technologies like direct air capture, these projects depend on a reliable flow of finance. Government action can ensure that this finance is channelled efficiently and at the scale needed to enable the solutions necessary if we are to meet the goals of the Paris Agreement.
Raising demand: Three strategic asks of the UK government
To truly scale the VCM, we must focus on raising demand. This means making it easier, lower risk, and more rewarding for businesses to participate. We believe the UK Government can do this in three key ways:
- Unlock business value to scale demand and climate finance: For carbon markets to thrive, they must deliver measurable business value. The Government should work with industry to co-develop tools, guidance, and incentives that help companies build robust business cases for voluntary climate action. This includes recognising the role of carbon credits in both near-term and long-term climate strategies.
- Incentivise corporate climate leadership through policy and recognition: Businesses need clear signals and real rewards for doing the right thing. A government-backed kitemark or endorsement scheme for companies using high-integrity credits, aligned with frameworks such as the ICVCM (Integrity Council for the Voluntary Carbon Market) and VCMI (Voluntary Carbon Markets Integrity Initiative), would send a strong message. Recognition, especially when tied to reporting frameworks, can drive scaled demand and reward early movers.
- Move from endorsement to enablement: The UK has endorsed the ICVCM (supply-side) and VCMI (demand-side) integrity frameworks. But endorsement alone is not enough. The Government must now actively create pathways to bring ICVCM-approved credits to market and encourage more VCMI-aligned claims. This requires an ecosystem approach, one that supports both the supply and demand sides of the market.
We’ve seen this kind of enablement work in other areas. For example, the UK Government has successfully driven solar adoption through a mix of tax breaks and grants. A similar approach combining policy, incentives, and infrastructure could help scale the voluntary carbon market and unlock climate finance where it’s needed most.
A balanced approach to claims and standards
The Government has the opportunity to provide meaningful and pragmatic guidance on what ‘good’ looks like, giving businesses confidence to act without defining requirements too rigidly, which may dissuade action.
We support the recognition of the VCMI’s Claims Code of Practice as a step toward greater alignment and integrity. However, we also urge flexibility and acknowledgement that other high-quality frameworks exist and represent valid routes for businesses to take climate action. The Government should ensure that other credible claims, such as carbon neutrality, remain viable options, provided they have implemented strong minimum requirements.
The current requirement for CCP-labelled credits (ICVCM) presents a challenge, as these credits are not yet broadly available. The Government should work with the ICVCM to accelerate the availability of CCP-labelled credits and consider providing a clear, time-bound pathway that allows the use of high-quality, non-CCP-labelled credits. Guardrails outlining how to ensure credits demonstrably meet the integrity and quality standards consistent with CCP expectations would support this.
Building a market for the future
The UK Government has a critical role to play in scaling carbon markets with integrity. By unlocking business value, incentivising leadership, and enabling the use of high-quality credits, it can help channel finance efficiently to the projects that need it most. This is not just about policy, it’s about building a market that works for business, for people, and the planet.
