UK Government unveils six key principles for corporate carbon credit use

New guidance aims to promote the use of carbon credits as part of credible net zero strategies

The UK Government has published six key principles for businesses to use when considering the purchase of carbon credits to offset their emissions.

The guidance, which was developed in consultation with businesses, investors, and environmental groups, aims to promote the use of carbon credits as part of credible net zero strategies.

The six principles are:

• Additionality: Carbon credits should represent genuine emissions reductions or removals that would not have happened without the credit being purchased.


• Permanence: Emissions reductions or removals should be permanent or at least long-term, and the risk of reversal should be considered and accounted for.


• Transparency: The use of carbon credits should be transparent, with clear reporting on the source and quality of the credits purchased.


• Integrity: Carbon credits should be from reputable and credible sources, with robust accounting and verification systems in place.


• Impact: Priority should be given to carbon credits that support projects that make a meaningful contribution to reducing emissions, enhancing carbon sinks, or increasing climate resilience.


• Alignment: The purchase of carbon credits should be aligned with the wider goals and objectives of the business's net zero strategy.

The guidance also includes a number of recommendations for businesses to consider when purchasing carbon credits, such as:

• Undertaking due diligence on the carbon credit scheme and provider


• Prioritizing the purchase of high-quality carbon credits from projects that align with the business's values


• Using carbon credits as part of a comprehensive net zero strategy that includes emissions reductions and removals

The publication of the six principles is a welcome step forward in the development of a robust carbon credit market in the UK. The principles will help businesses to identify and purchase high-quality carbon credits, and to use them as part of credible net zero strategies.

The UK Government's commitment to net zero is clear, and the publication of the six principles is a positive step in the right direction.