Completed

The carbon exchange: Mapping the drivers and impact of the carbon market on rural enterprises in the UK

Overview

Voluntary carbon markets (VCMs) play a critical role in achieving net zero goals by enabling the trade of carbon credits. However, UK rural enterprises such as farms, small businesses, and local producer groups, face significant barriers to participation. These include limited access to reliable information, minimal meaningful community input in key decisions, and unequal distribution of economic benefits. This project investigated these challenges by examining the Woodland Carbon Code (WCC) and Peatland Code (PC), identifying areas where they fall short in supporting fair and sustainable carbon trading.

The findings point to the need for clearer ethical guidelines, stronger partnerships with rural communities, and better support for diverse land ownership models. To help address these issues, an animated guide offering 10 practical tips for entering the carbon market and an infographic explaining key principles for navigating these opportunities were produced

The research was funded through NICRE’s Research and Innovation Fund.

Key findings

Limited community engagement.

Gaps in knowledge and accessibility.

Imbalances in power.

Deficits in ethical standards and transparency.

Insufficient support for diverse land ownership.

 

Missed opportunities for broader benefits such as evaluating their impact on biodiversity net gains.

Conclusions and recommendations

This study provides valuable insights into how rural enterprises can better understand, navigate, and capitalise on opportunities within the UK’s voluntary carbon markets.

As the WCC and PC continue to evolve, it is crucial that they align with responsible investment principles.

Recommendations to enhance the engagement of rural enterprises in VCMs:

  1. Strengthen community engagement
  2. Expand education and knowledge sharing
  3. Embed ethical standards and increase transparency
  4. Address power imbalances and representation
  5. Promote diverse land ownership models
  6. Maximise broader outcomes.

Loading...