UK joins forces with Kenya and Singapore to raise standards in voluntary carbon markets

Carbon markets have become an important topic in discussions about how businesses and governments meet climate goals. Companies, including UK companies, are increasingly expected to show how they plan to reduce emissions and contribute to global climate targets. However, the voluntary carbon market has faced criticism over whether the credits it generates truly represent real and lasting emission reductions. 

A new coalition takes shape 

One of the most notable developments is the UK’s role in a new coalition with Kenya and Singapore to build high-integrity voluntary carbon markets. The group, known as the Coalition to Grow Carbon Markets, was announced in June 2025 in London and includes support from countries such as France, Panama and Peru. It aims to set clear principles for what counts as a credible carbon credit, agreeing on shared rules by COP30 in Brazil in November 2025. 

What the Coalition plans to achieve 

The Coalition is significant because it’s one of the first times governments have directly stepped in to shape the voluntary carbon market. Until now, most of the rules and standards in this space have come from private bodies or non-profits. By working together, these governments hope to create a framework that can attract businesses back into buying carbon credits with confidence. 

One of the Coalition’s primary goals is to help channel private climate finance into emerging markets. It aims to mobilise up to $250 billion by 2050 USD, helping close the estimated $1.3 trillion annual funding gap to finance climate projects in developing countries. By establishing shared standards, the Coalition also aims to make it easier for companies to compare credits and avoid the risk of investing in low-quality projects that could expose them to accusations of greenwashing. 

Why this matters for UK businesses 

Even though challenges around trust and cost remain in the voluntary carbon market, the Coalition’s work could bring real benefits for UK businesses. More explicit rules and government involvement could help rebuild confidence, making it safer for companies to use high-quality credits to meet climate commitments. 

For chief sustainability officers, it could mean greater certainty about which credits to buy and how to integrate them into wider sustainability strategies without fear of reputational risks. 

Companies involved in global supply chains or working in emerging markets might also see new opportunities as finance begins to flow into projects that meet the Coalition’s standards. Businesses that engage early with these new rules could be better positioned to show leadership and secure stakeholder trust. 

Conclusion 

The UK’s decision to join Kenya and Singapore in the Coalition to Grow Carbon Markets signals a shift towards stronger government leadership in building trustworthy carbon markets. While there’s still work to be done, this step could help businesses approach the voluntary carbon market with more clarity and confidence. 

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