In the UK you can buy carbon credits two ways. Anyone can buy voluntary credits, from international projects or from UK woodland and peatland projects. Big emitters in covered sectors also take part in a compliance market, the UK Emissions Trading Scheme. This guide covers both, plus the tax and advertising rules that apply when you buy. For other countries, see our countries hub.

The UK’s compliance market (UK ETS)

The UK ETS came into effect on 1 January 2021Source 11. It is a cap-and-trade scheme: a cap limits total emissions, and operators must surrender an allowance for each tonne they emit. It was set up by the UK, Scottish and Welsh governments and Northern Ireland’s Department of Agriculture, Environment and Rural Affairs, which together form the UK ETS AuthoritySource 11.

It applies to:

  • energy-intensive industries and power generation
  • the aviation industry
  • maritime activity: domestic maritime came into scope on 1 July 2026, and offshore vessels follow on 1 January 2027Source 11

Allowances are held in the UK Emissions Trading RegistrySource 14. From 1 January 2027 the UK will also introduce a carbon border adjustment mechanism (CBAM) on imports of aluminium, cement, fertiliser, hydrogen, and iron and steelSource 12.

Allowances are not offsets

UK ETS allowances are permits that covered operators need to comply. If you want to compensate for your own or your company’s emissions, you buy voluntary credits, not allowances. Our guide to voluntary vs compliance markets explains the difference.

Buying voluntary credits in the UK

Individuals and businesses can buy from online retailers, marketplaces and brokers, which sell credits from projects around the world. Before you pay, ask which registry holds the credits and check that they are retired in your name. Our guide to how to verify carbon credits shows the steps, and where to buy compares providers.

The UK also has two domestic, nature-based codes:

  • Woodland Carbon Code Woodland Carbon Code. The UK’s government-backed standard for creating new woodlands that generate carbon credits Source 4.
  • Peatland Code. A voluntary certification standard for UK peatland restoration projects, developed and managed by the IUCN UK Peatland ProgrammeSource 6.

Logos identify the organisations named; no endorsement is implied.

Projects under both codes are recorded on the UK Land Carbon Registry, which shows the ownership and use of their carbon unitsSource 13.

What you can buy from UK woodland projects

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Woodland Carbon Code units, as of October 2026
UnitWhat it isWho can buy
Woodland Carbon Unit (WCU)A verified tonne of CO₂e removed from the atmosphereCompanies and individuals; individuals only for UK emissions
Pending Issuance Unit (PIU)A promise to deliver a WCU in the futureNot individuals

As of Oct 2026

A Woodland Carbon Unit is a tonne of CO₂e that has been removed and independently verified, while a Pending Issuance Unit is a promise of one in the futureSource 5. Individuals can buy WCUs from a project developer, trader or retail aggregator to compensate for their unavoidable UK emissionsSource 15.

Reduce first, then offset

Cut what you can before you buy. Credits work best for the emissions that are left, and the UK government’s own principles say companies should use credits in addition to action in their value chainsSource 8.

UK government principles for the voluntary market

In November 2024 the government published six principles for voluntary carbon and nature market integritySource 8. They include using credits in addition to ambitious action in value chains, and making accurate green claims using appropriate terminologySource 8.

A consultation on raising integrity in these markets ran from 17 April to 10 July 2025, and a summary of responses followed in March 2026Source 9. Check the consultation page for the government’s final response.

Claims and tax notes

What you can say about offsets

The CMA’s Green Claims Code says environmental claims must be truthful, accurate and substantiated, and businesses making net zero or carbon neutral claims should give information about any scheme they useSource 18. Since April 2025 the CMA can decide itself whether consumer law has been broken and fine a company up to 10% of its global turnoverSource 19.

For advertising, the ASA advises firms to avoid unqualified “carbon neutral” or “net zero” claims, to make clear whether a claim relies on offsetting or on cutting emissions, and to give details of the offsetting schemeSource 20.

On tax, HMRC says that from 1 September 2024 VAT must be accounted for at the standard rate on certain trades of voluntary carbon creditsSource 16. Sales of credits from self-assessed or low-integrity projects with no independent or third-party validation stay outside the scope of VATSource 7.

For a trading business, HMRC says the cost of carbon credits bought for the purposes of the trade will ordinarily be an allowable deduction in computing profitsSource 17. We found no HMRC guidance giving individuals tax relief for private purchases. Ask an adviser about your own case.

How to check quality before you buy

Each Verra credit represents one tonne of CO₂e reduced or removedSource 1, and registries such as Gold Standard’s track every credit from issuance to retirementSource 2. That makes three checks possible before you pay:

  • Is it in a public registry? Ask for the registry and serial numbers, and check the credits are retired in your name.
  • Is the method credible? The ICVCM’s Core Carbon Principles set a quality threshold, and credits that meet it can carry the CCP labelSource 3.
  • Is the seller clear? A good seller says what you are buying, what it charges and how and in whose name it retires credits.

Our quality section explains each check, and carbon credit scams lists the warning signs.

Article 6 deals

We found no official UK bilateral agreement under Article 6 of the Paris Agreement. The UK’s NDC says it intends to meet its target through domestic cuts, while reserving the right to use voluntary cooperation under Article 6Source 10.

For countries that have signed Article 6 agreements, see Switzerland, Singapore and Japan. For EU member states, see Germany and France.

How to buy, step by step

  1. Step 1: Work out what to cover

    Estimate your footprint and cut what you can first.

  2. Step 2: Choose a project type

    International credits, or UK woodland and peatland units if you only need to cover UK emissions.

  3. Step 3: Pick a provider

    Compare retailers, marketplaces and brokers on registry serials and certificates.

  4. Step 4: Check the registry record

    Confirm the credits are retired in your name on the registry.

New to buying? Our guide for individuals walks through each step.