Most UK companies would rather buy carbon credits from projects based in their home country, according to research from Octopus Investments.
Octopus released a report on the need for quality in the carbon markets last week. To compile the research, Octopus surveyed 300 UK-based senior business leaders and interviewed industry experts and investors.
The report provides insight for those looking to understand the carbon markets, and contains data points for investors generating carbon credits as part of their investment strategies.
More than three-quarters (76 percent) of respondents expressed a preference for carbon credits produced by projects based in the UK.
Given that all the companies surveyed were British, it is hard to say whether this reflects a preference for UK offset schemes specifically, or a more general preference from companies for credits to be generated in their own country.
Octopus highlights a number of reasons why the UK may be a desirable market for offsetters. These include the development of the Woodland Carbon Code, the Woodland Carbon Guarantee in England providing a government-backed floor price for credits, and UK companies’ growing focus on environmental issues in their locality.
Other interesting data points from the report include:
- 73 percent of companies intend to use credits in order to meet net-zero goals.
- 28 percent of respondents cited transparency as a major barrier to purchasing credits.
- 41 percent of companies consider co-benefits as a major reason to select a particular project.
The findings will be welcome news to Octopus. The firm announced a natural capital strategy last year when it hired Alex Godfrey as an investment director from Savills. The firm’s strategy will initially be focused on the UK and is looking to “mobilise’ £150 million ($191 million; €182 million), Godfrey told New Privat Markets at the time.
