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.

What are carbon markets?
Carbon markets enable organisations to buy and sell verified carbon credits, helping direct investment towards projects that reduce or remove greenhouse gas emissions.

When supported by strong standards and market infrastructure, they can help mobilise finance for climate action and support the transition to a net-zero economy.

£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.

Building trust in carbon markets 2.0

More recently, the UK has enabled high-integrity global governance initiatives which bolster confidence in carbon credits. The IC-VCM’s Core Carbon Principles, VCMI’s Claims Code of Practice, and the Oxford Offsetting Principles were largely developed in the UK. These standards demonstrate the commitment from UK actors to support carbon markets which are high-quality, verifiable, and contribute to real-world emission reductions and removals.

The UK has also established itself as a leader in climate diplomacy, supporting developing, emerging and transition countries establish domestic carbon markets. UK expertise has been shared with nearly 30 countries over the last decade, via the World Bank’s Partnership for Market Readiness and the Partnership for Market Implementation and through domestic international climate cooperation programmes.

The UK private sector is leading on developing key components of market infrastructure to support global high-integrity carbon markets. By leveraging our highly regulated and standardised compliance frameworks of banks and our trading and clearing infrastructure, we are making it easier for buyers to access the market and building a more liquid and transparent market.

Find out more

UK Carbon Markets Forum

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.

Seizing the UK’s carbon credit opportunity

The role of the UK in carbon markets

Accelerating Carbon Dioxide Removal

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