UK Carbon Credit Surge: Unlocking £1bn in Tax Revenue and 135,000 Green Jobs by 2035
The burgeoning carbon credit industry in the UK is set to play a transformative role in the nation’s economy, as highlighted in a recent report. This industry could potentially create 135,000 skilled jobs and generate an impressive £1 billion in tax revenue by 2035. According to BeZero Carbon, a leading global carbon ratings agency, the emerging market offers an exciting opportunity for the UK to become a global hub for carbon credits.
Carbon Credit Industry: A Game Changer for the UK Economy
The report titled From Risk to Reward: Making the UK the Carbon Markets Capital of the World outlines the immense potential of the carbon credit market. It suggests that this sector could attract approximately £10 billion in private investments each year, rivaling the UK’s current international aid budget.
Job Creation and Economic Impact
BeZero Carbon’s analysis indicates that the carbon credit market could generate more than double the number of jobs currently found in the UK’s mining and quarrying sector. The projected job distribution across various green economy fields is as follows:
- 80,000 jobs in nature-based solutions, including reforestation and land use.
- 30,000 jobs in engineered carbon removal technologies, such as Direct Air Capture.
- 25,000 jobs in support infrastructure, covering analytics, insurance, legal services, and brokering.
This growth is expected to generate about £1 billion in income tax and national insurance payments, which is nearly 1.5 times the revenue collected from the digital services tax. Furthermore, the increasing demand for high-quality carbon credits could unlock billions in private investment, significantly benefiting biodiversity, ecosystem restoration, and global public health.
Exceeding Carbon Removal Targets
The report also forecasts that the UK may exceed its domestic carbon removal goals. With the anticipated growth in the carbon credit market, the country could surpass the Climate Change Committee’s 2035 target of 13 million tonnes and potentially reach nearly 20 million tonnes of carbon removals by 2035, five years ahead of the 2040 objective.
Key Recommendations for Market Growth
To capitalize on this opportunity, BeZero Carbon has proposed several strategic recommendations:
- Integrate carbon removals into the UK Emissions Trading Scheme (ETS).
- Encourage large businesses to adopt a carbon credit claims framework.
- Embed carbon ratings into market design.
- Establish clear regulations to support the credibility of ratings providers.
Expert Opinions on the Carbon Market
According to Tommy Ricketts, CEO and co-founder of BeZero Carbon, “The UK has a long-standing reputation as a hub for carbon markets due to its robust science, finance, and policy foundation. With effective regulations and strong government backing, the UK can emerge as the global capital for carbon markets.”
Ricketts emphasizes that unlocking this potential requires coordinated efforts between the public and private sectors, akin to the proactive approach seen in Singapore. He expresses optimism regarding the current UK Government’s initiatives, stressing the urgency of action to benefit both the climate and the economy.
UK Climate Minister Kerry McCarthy echoed these sentiments, stating, “Carbon markets can facilitate meaningful climate action and foster lasting environmental change. We are committed to ensuring these benefits are realized through global efforts to enhance market integrity.”
For more insights on the UK’s carbon credit industry and how it can support economic growth and climate action, visit UK Government Policies or explore detailed reports from BeZero Carbon.
