Raising integrity in voluntary carbon and nature markets

The UK Government is consulting on its proposed policy and governance framework for voluntary nature and carbon markets. Given recent high-profile investigations into the integrity of carbon markets, and a subsequent reduction in the size of the carbon market, it’s vital that new claims guidance builds confidence, drives investment, and supports meaningful progress toward net zero and nature recovery.

ISEP has responded to the recent consultation with a set of clear and constructive recommendations that reflect the needs of practitioners, market participants and the wider environmental sector.

Chloë Fiddy sets out the key recommendations here.

Carbon market integrity with flexibility

The use of the VCMI Claims Code is supported as a benchmark, but only if it allows for interim carbon neutrality claims. Many organisations need to offset residual emissions during their transition to net zero, and credible, time-bound claims of carbon neutrality can encourage early action. UK voluntary guidance can bring clarity and leadership to the carbon market, if underpinned by the greenhouse gas hierarchy and aligned with the Oxford Principles.

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Being clear on the purpose of nature markets

Nature credits are fundamentally different from carbon credits. Their purpose is also to increase biodiversity and ecosystem function, not simply to offset emissions. The UK can lead globally by providing strong, consistent frameworks, for instance by setting clear definitions and expanding on the guidance in BSI Flex 701 to provide stakeholder-specific guidance. A new Strategic Nature Network or currently Local Nature Recovery Strategies and Local Plans offer opportunities to channel private investment into nature, if supported by clear spatial targeting and long-term policy certainty.

Governance, Capacity and Trust
High-integrity markets depend on robust regulation, trusted verification, and clear definitions, all matters which the UK Government is in a position to support. Addressing the skills gap—particularly in ecology and green finance—is urgent if the UK is to meet its ambitions.

Finally, practical support matters. Templates, case studies, and guidance for SMEs and larger companies alike can reduce complexity and help turn good intentions into action.

The UK has a genuine opportunity to shape the future of impactful high-integrity voluntary markets.

Download ISEP's full response here.


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Chloë Fiddy

Senior Policy and Engagement Lead

Chloë is the Senior Policy and Engagement Lead for Climate Change Mitigation and Adaptation at ISEP. Within this remit she works on policy advocacy and practice guidance projects relating to sustainability disclosures, particularly the aspects of emissions reporting, adaptive capacity, and risk and transition planning. Chloë is also a District Councillor and chairs the council’s Audit and Standards Committee. Previously she has worked at senior levels in the manufacturing and retail sectors, in climate and sustainable development planning roles in the public sector, and has served for a number of years as a charity trustee.