1076. In the interim of expanding the compliance carbon market across most of the economy, voluntary carbon markets (VCMs) can provide an avenue for businesses to offset their carbon emissions by investing in greenhouse gas removals or energy efficiency measures (offsets), enabling businesses to reach net zero emissions ahead of the economy as a whole. This can further help pave the way for the compliance market.770
1077. VCMs can mobilise much-needed investment in nature-based solutions and engineered GGRs and there is a potential to expand this to energy efficiency measures in local communities across the UK.
1078. The Government included questions about VCMs in the Call for Evidence for the updated Green Finance Strategy which has yet to be published. This highlights an increasing focus from government on the opportunities and risks brought about by a growing global carbon market, but this should be accelerated to ensure confidence in the market.