A new report by Octopus Investments reveals that 76% of UK businesses prefer purchasing carbon credits from domestic projects to meet their net-zero targets. The study, which surveyed 300 senior business leaders, highlights the growing reliance on high-quality, verifiable carbon credits to offset emissions. With 73% of firms planning to use carbon credits for hard-to-abate emissions, confidence in the voluntary carbon market is increasing, driven by the ability to directly assess UK-based projects. 

UK carbon credits, particularly removal credits under the government-backed Woodland Carbon Code, are seen as more reliable than those from other jurisdictions, reducing greenwashing risks. Octopus Investments, a key player in the market, is actively investing in carbon credit projects, partnering with firms like Treeconomy to integrate satellite-based monitoring technology for improved verification. 

The report also highlights a significant knowledge gap in the carbon credit market. While 92% of business leaders are confident in meeting their net-zero goals, only 42% could accurately define carbon credits, and even fewer understood the distinction between removal and avoidance credits. This lack of awareness has left businesses vulnerable to low-quality credits that fail to deliver meaningful climate impact. 

The financial sector’s involvement in carbon credits remains limited, with pension funds and insurance companies lagging behind tech giants like Microsoft, Google, and Amazon, which are among the biggest buyers. However, some institutional investors, such as Canada’s CPP Investments and Singapore’s Temasek, are taking steps to engage in carbon credit initiatives. 

As businesses seek credible solutions to achieve carbon neutrality, improving market transparency and education will be critical to ensuring that carbon credits deliver real and measurable environmental benefits. 

Fuentes: 

https://www.netzeroinvestor.net/news-and-views/briefs/uk-firms-prioritise-domestic-carbon-credits-amid-net-zero-push