Study: UK Could Be 'Global Capital' for Carbon Credit Industry
New research from carbon ratings agency BeZero Carbon suggests that the UK has the potential to become the world leader in voluntary carbon markets, creating over 100,000 high-skilled jobs and generating £1bn in tax revenue by 2035.
In its latest report, **"From Risk to Reward: Making the UK the Carbon Markets Capital of the World,"** BeZero Carbon outlines how the UK’s strengths in science, finance, and policy uniquely position it to lead the growing global carbon credit economy.
“The UK is a long-standing hub for carbon markets,” said Tommy Ricketts, CEO and co-founder of BeZero Carbon. “With careful regulations and decisive government guidance, it can be the global capital.”
Economic and Job Creation Potential
According to BeZero’s modelling:
- The carbon credit industry could support 135,000 jobs by 2035 — nearly triple the size of the UK’s mining and quarrying sector.
- 80,000 jobs could be created in nature-based carbon removal (e.g., ecologists, foresters, rangers, and farmers).
- 30,000 roles could emerge in engineered carbon removal, such as direct air capture (DAC) facilities.
- 25,000 jobs could arise in market services, including analysts, brokers, scientists, consultants, lawyers, and insurers.
This employment surge could contribute £1bn in income tax and national insurance revenue — nearly 1.5 times what the UK currently earns from the digital services tax.
Environmental and Investment Impacts
The report also estimates that:
- The UK carbon credit market could unlock £10bn in private investment annually for high-impact international carbon projects.
- These projects would deliver co-benefits such as biodiversity restoration and public health improvements.
- Engineered carbon removal could surpass Climate Change Committee (CCC) targets, reaching 20 million tonnes annually by 2035 — five years ahead of schedule.
Recommendations for UK Government
With a public consultation on domestic carbon and nature markets currently open until July, BeZero Carbon calls on the government to:
- Integrate carbon removals into the UK Emissions Trading Scheme (UK ETS).
- Encourage large UK businesses to adopt robust carbon credit claims frameworks.
- Mandate carbon credit ratings in market design to mitigate underperformance risks.
- Provide legal and regulatory clarity for carbon credits and ratings agencies.
“Unlocking this long-term growth engine requires political will and public-private coordination,” said Ricketts. “The good news is we are seeing that from the current government — but there’s no time for delays.”
