The UK government has launched a consultation seeking feedback on a set of six principles designed to strengthen integrity in the voluntary carbon markets (VCM).
First unveiled at COP29 in November 2024, the principles aim to establish clear guidelines for the use of carbon and nature credits.
The Department for Energy Security and Net Zero said the framework is intended to guide and support businesses in using carbon credits that deliver genuine environmental benefits and help build trust and confidence across credit markets. The consultation is open until July 10.
The government reiterated its commitment to “market-based measures” as a tool for emissions reductions and nature conservation but warned that unclear standards for what constitutes a “high-integrity” credit are currently hindering market growth.
The six principles proposed for consultation are:
- Companies must use credits as a complement to — not a replacement for — ambitious emissions reductions and nature protection efforts within their own operations and supply chains.
- Credit suppliers must ensure that credits meet established high-integrity criteria and deliver the environmental outcomes promised.
- Companies must disclose how they intend to use carbon credits, particularly in relation to any emissions offsetting reported in their sustainability disclosures.
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- Organisations should integrate credit use into their transition planning and net zero strategies, rather than relying on ad hoc purchases.
- Any green claims involving credits must accurately represent the organisation’s or product’s total environmental impact.
- Buyers should promote market improvements by supporting standardisation, transparency, equitable access, lower transaction costs, and interoperability.
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The consultation also highlights independent best-practice standards, such as those developed by the Voluntary Carbon Market Integrity Initiative (VCMI) and the Integrity Council for the Voluntary Carbon Market (ICVCM).
The government is also seeking views on the role of voluntary carbon markets (VCMs) in helping companies address Scope 3 emissions—those generated outside of direct operations, typically across value chains.
In particular, feedback is invited on the VCMI’s draft Scope 3 Claim and its upcoming Scope 3 Action Code of Practice, set to be published on April 30.
The guidance is expected to offer companies a framework to both directly reduce emissions and responsibly use carbon credits to tackle any remaining Scope 3 emissions, according to the VCMI.
