Georgia Spyrou, Solicitor in the Energy team at law firm Shakespeare Martineau.
Voluntary carbon credits are fast emerging as one of the most dynamic tools in the race to net zero. Once seen as a niche sustainability gesture, they’re now moving firmly into mainstream ESG activities for corporates. As momentum builds, such schemes are drawing serious attention from policymakers, investors and businesses alike, with an increasing focus on ensuring their integrity and credibility. Now more than ever, a streamlined, global standard is needed.
A recent survey by the Morgan Stanley Institute for Sustainable Investing found that over 90% of companies currently purchasing voluntary carbon credits plan to continue doing so and expect volumes to grow over time. With corporate net zero strategies becoming more of a priority and the UK’s commitment to net zero greenhouse gas emissions by 2050 drawing ever closer, the market has potential for rapid growth.
Anticipating this growth, the UK government consulted on proposals to raise integrity in voluntary carbon and nature markets, including how its 6 Principles for Voluntary Carbon and Nature Market Integrity could be implemented through guidance, policy and, where appropriate, regulation. The government has now published a summary of the feedback received, revealing broad support for improving integrity, confidence and usability in these markets.
Respondents emphasised several key priorities: internationally aligned expectations on the appropriate use of credits; robust approaches to credit quality; transparent reporting; proportionate approaches to assurance and enforcement; and avoiding unnecessary fragmentation. These themes provide a clear roadmap for policymakers and signal what businesses expect from any future regulatory framework.
In particular, many respondents supported the government endorsing the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles (CCPs) and accompanying Assessment Framework as a minimum quality requirement. The CCPs were widely viewed as a credible, science-based benchmark that could improve trust, comparability and reduce the risk of perceived greenwashing. However, several respondents qualified their support, noting that whilst they endorsed the CCPs in principle, clear guidance for practical application would be essential. The government’s policy response is expected in summer 2026.
Voluntary carbon and nature markets channel private capital towards environmental initiatives, for example funding restoration and conservation projects that may otherwise not be supported, which, as a result, offer a simple way for businesses to offset their emissions while also providing significant commercial and reputational benefits. For example, such credits could help bolster a business’ financial resilience. This is because they may be viewed favourably in the context of sustainability-linked finance and preferential terms may be offered by lenders to businesses that demonstrate strong ESG credentials, including diversified approaches to decarbonisation.
Despite these benefits, the main challenge to wider adoption remains inconsistency in the regulatory landscape. With many different carbon crediting methodologies and standards in the market, there are concerns from businesses and their stakeholders about the credibility of their offsetting activities. Allegations of misleading environmental claims have become relatively common within the business community, and the consequential reputational damage can be vast. When it comes to a holistic ESG approach, relying solely on a voluntary carbon credit scheme is risky. While these credits are a valid route to decarbonising supply chains and incentivising third party suppliers, to properly engage with prudent ESG compliance, businesses must review their own operations and actively work on reducing Scope 1, 2 and 3 emissions where possible.
Whilst a great way to get an ‘industry view’, the consultation process does not lend itself to agility. It can take time to form these responses into a plan with actionable steps, and then begin to execute that plan. To capitalise on the current popularity of voluntary carbon credits, the government must address the concerns with the framework swiftly. This also means ensuring the policies are then acted upon. Government consultations have been known to struggle with delivering change after they have concluded, and it’s vital that the outcomes from this one don’t get pushed aside for other items on the political agenda.
It is also important that the government does not just stop at implementing a national integrity framework, but works with other countries to establish a coherent global standard. If all countries had the same integrity standards for voluntary carbon credits, this would allow for better benchmarking and adherence across the board. On a global scale, such standardisation can help to encourage businesses around the world to participate in offsetting initiatives.
Voluntary carbon credits are on the precipice of becoming a standard part of businesses’ ESG initiatives, with interest at a national and international scale. The government urgently needs to implement a standardised framework for the voluntary carbon credit market, and the consultation responses provide a clear indication of what stakeholders expect from such a framework.
This article appeared in the May 2026 issue of Energy Manager magazine. Subscribe here.
