How carbon markets work

Carbon markets are expanding at pace as governments move towards net zero. It is important to understand how they work before entering this space.

There is an imbalance in available information on carbon markets – both in how they work and the value of carbon. Carbon credit buyers know more about the markets and value of credits to their business than the sellers (farmers and land owners). There is a real need to provide clear and unbiased information to allow our farmers and land owners to make informed business decisions on whether to enter into carbon markets.

The section aims to help levy payers navigate the plethora of emerging schemes whether to sell carbon credits. The latest information and guidance will be made available as it develops in order to support informed, evidence-based decision making.

Carbon insetting vs carbon offsetting

Understanding the two types of carbon market

Price disparities between carbon markets

Understanding regulated carbon markets

UK Emissions Trading Scheme

Carbon trading vs offsetting

Have a question? Contact the team

Related links

Our Trade and Policy page explores changes in policy and how this will impact your business

See our Environment page for more info on carbon emissions

Background to the Sustainable Farming Incentive

AHDB's long-term outlook explores carbon and related policy developments

Background information on greenhouse gas emissions from agriculture

Glossary of carbon-related terms

Back to carbon markets home

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