The strategy is part of the government’s broader Plan for Change, which recognizes the role of voluntary markets in reaching net-zero targets. These markets enable businesses to purchase carbon credits—representing the removal or reduction of greenhouse gas emissions—generated by projects such as reforestation, renewable energy deployment, or methane capture. While offering a pathway to finance emissions reductions beyond a company’s immediate operations, current market structures have been criticized for lacking transparency and consistency.
To address these challenges, the UK is introducing six integrity principles to guide the use of credits, including clearer definitions of credit quality, disclosure standards in sustainability reporting, and alignment with the Paris Agreement’s 1.5°C goal. The government is also consulting on integrating best-practice codes such as the Voluntary Carbon Markets Integrity Initiative (VCMI) Claims Code and Scope 3 Action Code of Practice.
“Building trust in carbon and nature markets is crucial to accelerating climate action,” said Climate Minister Kerry McCarthy. “These principles will cement the UK’s position as the global hub for green finance and ensure voluntary markets deliver real environmental and economic value.”
Nature Minister Mary Creagh emphasized the value of the markets for rural stakeholders: “Increasing trust in these systems will help direct capital to protect peatlands, habitats, and biodiversity, while supporting new revenue streams for farmers and landowners.”
The initiative is also aligned with recommendations from the Corry Review, which called for the creation of a Nature Market Accelerator to bring greater coherence and scale to the UK’s nature-based solutions economy.
Currently valued at approximately $2 billion, global voluntary carbon markets could reach $250 billion by 2050 under the right conditions. The UK’s net-zero economy is already outpacing the broader economy, growing three times faster last year and drawing more than £43 billion in clean energy investments since July.
The 12-week consultation—Voluntary carbon and nature markets: raising integrity—seeks feedback from the public, industry, and environmental organizations. Responses will shape future regulatory and market frameworks designed to support climate integrity, economic growth, and global leadership in sustainable finance.
