UK Government sets out new voluntary principles on carbon and nature markets
The UK government has introduced a set of principles aimed at ensuring the integrity of voluntary carbon and nature markets as part of its commitment to achieving net zero emissions and promoting nature-positive transitions.
Recognising the need to double annual investments in low-carbon sectors from £60 billion in 2023 to £130 billion by the 2030s, the Government seeks to unlock high-integrity markets through these principles. These include using carbon credits in addition to ambitious value chain actions, ensuring the credits are independently validated, and incorporating their use into sustainability reporting. The principles further emphasise planning ahead, making accurate environmental claims, and fostering collaboration to support the growth of credible markets.
The six principles are:
- Use credits in addition to ambitious actions within value chains
- Use high integrity credits
- Measure and disclose the planned use of credits as part of sustainability reporting
- Plan ahead
- Make accurate green claims using appropriate terminology
- Co-operate with others to support the growth of high integrity markets
A consultation on applying these principles via guidance, standards, and oversight is scheduled for early 2025.
A government policy paper accompanying the principles underscores the importance of integrity in carbon markets for accelerating climate action and biodiversity conservation, aligning with the global 1.5°C climate target. The paper highlights that credible and well-managed markets are vital to achieving these goals.
This initiative is welcome and should drive some action, but regulating the markets may ultimately be required to ensure action across all sectors.