The UK’s carbon credit industry has the potential to become a key pillar of the country’s economy, with a new report suggesting it could support 135,000 skilled jobs and generate £1bn in tax revenue by 2035.
According to BeZero Carbon, a global carbon ratings agency, the emerging market could also attract £10bn in private capital annually, rivaling the UK Government’s current international aid spending.
The findings were published in BeZero Carbon’s latest paper, From risk to reward: Making the UK the carbon markets capital of the world. Released as the UK Government continues its consultation on the future of carbon and nature markets, the report highlights the scale of opportunity in establishing Britain as a global hub for carbon credits.
BeZero Carbon estimates that the market could create more than double the number of jobs currently found in the UK’s mining and quarrying sector. These roles would be distributed across a range of green economy sectors — including around 80,000 jobs in nature-based solutions such as reforestation and land use, 30,000 in engineered carbon removal technologies like Direct Air Capture, and 25,000 in support infrastructure including analytics, insurance, legal services and brokering.
From a fiscal standpoint, the paper projects that this growth could deliver roughly £1bn in income tax and national insurance payments — nearly 1.5 times the revenue collected from the digital services tax. It also predicts that the growing demand for high-quality carbon credits will unlock billions in private investment, driving significant impact for biodiversity, ecosystem restoration and public health globally.
The report also forecasts that the UK could exceed its domestic carbon removal targets. Based on projected market growth, the country may surpass the Climate Change Committee’s 2035 target of 13 million tonnes and reach nearly 20 million tonnes of removals — five years ahead of the 2040 goal.
To realise this opportunity, BeZero Carbon has outlined four key recommendations: integrating removals into the UK Emissions Trading Scheme (ETS), encouraging large businesses to adopt a carbon credit claims framework, embedding carbon ratings into market design, and introducing regulation to clarify legal frameworks and support the credibility of ratings providers.
BeZero Carbon CEO and co-founder Tommy Ricketts said: “The UK is a long-standing hub for carbon markets given its science, finance, and policy base. With careful regulations and decisive government guidance, it can be the global capital. Our report shows that a thriving carbon market in the UK could deliver 135,000 skilled jobs, £1 billion in tax revenue, and £10 billion a year into high-quality carbon projects, much of which for the global south.
“The prize of unlocking a long-term growth engine for the UK’s net zero economy requires political will and private-public coordination, similar to the vigour and cogency of Singapore. The good news is we are seeing this from the current UK Government, but for the sake of the climate and the UK economy, there’s no time for delays
UK Climate Minister Kerry McCarthy added: “Carbon markets can deliver meaningful climate action and real, lasting change for the environment. We’re making sure these benefits are realised by leading global efforts to raise integrity in these markets.
“BeZero Carbon’s research shows that carbon markets can also support jobs and economic growth for the UK, while channelling the private finance needed to tackle the climate crisis and speed up the global clean energy transition through our Plan for Change.”
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