As we are getting closer to London Climate Action Week (LCAW) and what feels like the event of the year, (or perhaps it just feels like it because we are hosting three events and are in the middle of central London!), I wanted to do a short write up of the state of the UK carbon market and how it has changed over time.
This is by no means a deep dive into the UK carbon market, I will leave that to our expert carbon market analysts, but more so a snapshot of where the market is now.
LCAW growth over the last few years
Three years ago, I was exhibiting with AlliedOffsets at Reset Connect and although London had a climate scene, the carbon market conversations still felt like they were at a very early stage. Since then, LCAW has grown massively. According to LCAW’s official website, 2024 saw over 300 events and 50,000 attendees, and by 2025 that had doubled. This year there’s at least 750+ events and 75,000 people.
For us in the carbon market, it’s not just the number of people that have changed, but more importantly the conversations we are having have also significantly matured, and that is very exciting to be part of.
So what does the UK carbon market look like in 2026?
UK Carbon market snapshot
The UK market is still removal-heavy, but the type of removal is shifting
The UK carbon market is growing and now has over 3,000 carbon projects, with 85.9% removals. This reflects the UK's early policy emphasis on carbon removals.
Yet, the trend is shifting slightly, and whilst removals dominate overall supply we have seen less supply from technical removals and more supply from nature-based removals in the last four years.
So who is buying UK credits?
For UK-based projects, there are 690 buyers in total, with tech companies leading in both retirements and offtakes. Microsoft sits at the top, followed by Respira International, Allstar, and Premier Paper Group.
And what are UK based companies buying?
The picture looks quite different when you look at UK-headquartered buyers. Here, the number jumps to 2,859 buyers with a strong focus on energy and aviation companies purchasing forestry and renewable energy credits.
Investment is still highly concentrated in technical removals in the UK
The investment picture also tells an interesting story. In 2022–2024, UK carbon investment was heavily concentrated in Carbon Capture. Now in 2026 this has shifted and DAC, biochar, and BECCS are now attracting the most investment. Interestingly, 2026 has also already surpassed total 2025 investment levels.
So whilst nature based issuances are scaling in the UK, investment is still highly concentrated in technical removals.
Who are the investors of UK carbon projects?
On the investor side, corporate capital leads, followed by institutional investors and government/ public funding. And when it comes to investors backing more than one UK project, it's the UK government that stands out.
Looking ahead
The UK carbon market is maturing, and the conversations happening around LCAW reflect that. Three years ago we were explaining what a carbon credit was and this year we are hosting events on topics such as the future of the carbon removal market together with companies from the carbon market, LSE and even the UK government
If you want to go deeper on any of this, we have two publications coming shortly. Our H1 Market Trends report launches next week which will cover a deep dive into the carbon market developments in 2026 and a section about the UK specifically. On 1st July we're also releasing a report on carbon removals and forecasting in the UK, so keep an eye out on our website and social media for more updates.