Limited data, scarce financing and the lack of a universal code are all issues found within the UK’s carbon offsetting market, according to a report by the London School of Economics’ Brendan Curran.
With the UK expected to emit 3,340mln tonnes of CO2 between now and 2035, estimates place the country’s offsetting capacity at 57mln tonnes a year.
2022 saw projects in the UK offset less than one million tonnes, however.
Within the report, a survey found 97% of a group of FTSE 350 board directors agreed that carbon credits should be brought from UK-based projects, but many outlined there was a lack of provision to do so.
“More needs to be done to support the development of more UK natural carbon offsetting projects, and to make it easier to invest in them,” wrote Curran in the report.
Respondents added that their companies invest in carbon offsetting projects overseas, including in Asia, North America and continental Europe.
The report did find that UK landowners were ready to offer more carbon credits though, citing there are currently over 1,600 woodland and 135 peatland schemes, totalling 82,508 hectares.
An October report by the Climate Change Committee found companies were “over-relying” on carbon credits as a means to achieve net-zero emissions targets.
“If voluntary carbon markets are genuinely to complement the transition to Net Zero, businesses must be supported to directly decarbonise their operations and supply chains,” it found.