Carbon Solutions for Compliance and Voluntary Markets

  Carbon credits represent one metric tonne of CO₂ equivalent (tCO₂e) emissions reduced or removed from the atmosphere. Businesses purchase these credits to offset unavoidable emissions, supporting global climate projects and meeting net-zero commitments.  

• Compliance markets (e.g., EU ETS, UK ETS, CORSIA) are regulated schemes where entities must surrender allowances or credits to meet legal obligations.
• Voluntary markets allow businesses to offset emissions beyond compliance, using credits from standards like Verified Carbon Standard (VCS) or Gold Standard to enhance ESG performance.  

CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) is a global program by ICAO to cap net CO₂ emissions from international flights. Airlines must monitor, report, and offset emissions growth using eligible carbon credits from approved programs.
•    Voluntary phase: 2024–2026
•    Mandatory phase: Starts 2027 for ICAO member states

SmartestEnergy provides credits verified under leading international standards:
•    Verified Carbon Standard (VCS)
•    Gold Standard
•    UK Woodland Carbon Code
These ensure traceability, integrity, and compliance with global sustainability frameworks.

Carbon offsets compensate for emissions by funding projects that reduce or remove greenhouse gases, such as renewable energy installations, reforestation, or methane capture. Each credit equals one tonne of CO₂e avoided or removed, helping businesses achieve carbon neutrality.

UK companies face increasing pressure from net-zero targets, SECR reporting, and customer ESG expectations. Carbon credits provide a cost-effective way to address hard-to-abate emissions, complementing energy efficiency and renewable procurement strategies.

The EU ETS sets a declining cap on total emissions and issues tradable allowances, with one allowance equal to one tonne of CO₂ equivalent. Power, industry and aviation are covered, now extended to maritime transport, and companies must monitor, report and surrender allowances annually. Non compliance leads to fines.

The UK ETS launched in 2021 to replace the UK’s participation in the EU ETS. It currently covers heavy industry, power and aviation, about a quarter of UK territorial emissions. The UK ETS Authority has been updating guidance, expanding sectors such as maritime and waste, and confirming a Phase II from 2031 to 2040 to maintain a credible long term carbon price signal.