‘UK businesses rely on carbon credits to hit green targets’

By Finance News On Aug 16, 2024

Almost two-thirds of sustainability goals set by large UK businesses are expected to be met through the purchase of carbon credits.

On average, these companies plan to spend £20 million each on these credits.

Carbon credits allow businesses to emit a certain amount of greenhouse gases.

The study by insurance broker Gallagher found that 88% of large UK businesses have already bought carbon credits, with each company spending an average of £2 million.

Most of these businesses intend to purchase more, with one firm planning to invest £1.2 billion in carbon credits.

The study shows that 27% of large businesses do not have a backup plan if their credits fail, and only 51% have insurance for their carbon credit investments.

James Bosley, Head of Climate Strategy, Carbon Insurance & Parametric Solutions, at Gallagher, said: “We’re seeing increasing uptake of new innovative carbon removal technologies, as well as wider offset credits and businesses are committing significant amounts of investment as they work toward their sustainability goals.

“The consensus around the use of carbon credits suggests that they will play a significant role in the transition to net zero in the coming years, especially where decarbonisation options are limited.”