The role of the UK in carbon markets: a path to global leadership

There is a global consensus on the importance of climate finance to meet the 1.5°C threshold goal under the Paris Agreement. High-integrity carbon markets are essential for scaling finance and enabling a just transition globally. 

So the UK has a unique opportunity to become a global leader in scaling and supporting well-functioning global carbon markets. The role of the UK in carbon markets: a path to global leadership sets out where the UK can strengthen its offer.  

It provides clear insights for UK-based carbon market stakeholders (including the UK government, investors, and advisors) to enhance overall market development. 

The UK has longstanding experience of leadership in carbon markets. This includes influencing global regulatory development, and the design and operation of markets. Critical integrity standards, such as the Oxford Offsetting Principles and the Integrity Council for the Voluntary Carbon Market’s carbon credit integrity principles, have been shaped by the UK. 

Key Strengths of the UK: 

• Geological and natural capital: establishing cost-effective and high-integrity carbon removal solutions. 
• Sustainable finance expertise: leveraging depth of experience from both the private sector and government. 
• Comprehensive carbon markets ecosystem committed to good governance: facilitating world-leading governance initiatives, making the UK an attractive locale for investment and innovation. 

The report is published by the City of London Corporation in collaboration with the UK Carbon Markets Forum and based on joint research by the City of London and McKinsey & Company.