The UK’s role in scaling global carbon markets

The UK's offer

Leading expertise built over two decades of practice in carbon markets
A growing sector with strong UK government backing and a supportive regulatory environment
A global financial centre with a large pool of investors and capital
World-class standard-setters and research institutions

Pioneering expertise in carbon markets

The UK has been a committed partner in the global development of high-integrity carbon markets over the last two decades. In 2002 the UK launched the first pilot of a national carbon trading scheme. Many of the technical design features pioneered for the scheme informed the development of the EU Emissions Trading Scheme (ETS) launched in 2005 and became part of a blueprint for compliance markets around the world.

The UK’s contribution to the innovation of carbon markets helped to launch an ecosystem of carbon project experts and associated investors, lawyers, regulators and academics, positioning the UK as a global hub for the topic.

£1.2bn GVA

The value of the UK carbon credit economy was £1.2 bn GVA in 2025

$5.8bn invested

total commitment by UK financial institutions and corporates to carbon projects globally (2023-25)

50-190x

Potential growth of global carbon credit markets by 2050

≈ $1.4tn

Carbon allowances and related derivatives were traded via UK-based market infrastructure provider, Intercontinental Exchange (ICE) in 2025.

How the City of London Corporation supports seizing the opportunity of carbon markets

The City of London Corporation (CoLC) is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally successful UK. We provide the secretariat to the Carbon Markets Forum, and we are also a founding sponsor of the Integrity Council for the Voluntary Carbon Market (IC VCM).

Beyond this policy work, we operate a Carbon Removals and Land Management Project as part of our Climate Action Strategy to protect the existing carbon stored by our open spaces and to increase their carbon sequestration capacity. Our open spaces currently remove over 16,000 tonnes of carbon from the atmosphere every year.

About the UK Carbon Markets Forum

The UK Carbon Markets Forum (CMF) was established in April 2021 as a private sector initiative to scale global carbon credit markets, supported by the City of London Corporation. The Forum is chaired by Mike Zehetmayr, Partner at EY, and focuses on strengthening market frameworks, infrastructure and demand to support trusted, efficient and globally competitive carbon markets. The City of London Corporation provides secretariat support.

For more information about the Forum, please contact vcm@cityoflondon.gov.uk.

Seizing the UK’s carbon credit opportunity

The role of the UK in carbon markets

Accelerating Carbon Dioxide Removal

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