Financing UK Carbon Reduction Projects

This publication explores the funding of project-based carbon reduction projects in the UK by:

• surveying potential sources of supply and demand for such emission reductions
• examining the regulatory hurdles that need to be overcome to put a funding mechanism in place.

It recommends the creation of a comprehensive reporting framework for carbon reduction projects in the UK that can accommodate the variety of projects and carbon accounting and financial methodologies already in place for funding such projects. The ultimate goal of such a reporting framework will be to create a new asset class, namely project-based carbon reductions in the UK, so that the investment capital required to fund such emission reductions and help the UK to meet its climate change targets can be deployed most effectively across the entire range of voluntary and regulated projects in the UK.