Government backs UK businesses to trade carbon credits and unlock finance for the clean energy transition

UK govt strengthens carbon markets to establish the UK as the global hub for green finance - Reconomy comment

The government has announced plans to strengthen the voluntary carbon and nature markets through establishing a global framework to unlock the finance needed for the clean energy transition whilst diversifying revenue streams for British businesses.

Carbon credits allow businesses to reduce their emissions by investing in environmentally friendly projects and the government believes that these markets are not realising their full potential. 

These markets are estimated to be worth up to $250 billion by 2050 for carbon markets, and $69 billion for nature markets, under the right conditions.

Diane Crowe, Group Sustainability Director at Reconomy, the leading international circular economy specialist, said:

“It is encouraging to see the government announce measures that will build trust and confidence in voluntary carbon and nature markets. Strengthening these markets will not only drive green investment and growth, but will also help cement the UK’s position as a global leader in sustainable finance.

“This announcement follows a recent speech from Steve Reed, the Environment Secretary, in which he doubled down on the government’s commitment to accelerating the transition to a circular economy.

“At Reconomy, we know that greater clarity and regulatory certainty can materially help businesses lower their carbon footprint and cut costs by closing circularity gaps, reducing waste and keeping resources in circulation. Following the General Election last year, we launched a 10-point regulatory framework calling for a more consistent and joined-up approach to circular economy policy. Together, these announcements create momentum and build confidence among businesses which is essential to helping the UK transition to a low-carbon, circular economy that drives long-term economic growth.”