Voluntary credit
Issued by a programme registry; bought to support a claim or a target.
Not named as a specified investment when traded spot (RAO Part III).Software · carbon credits, cited
Carbon credit software: what a credit register must record
Carbon credit software keeps the record of every credit an organisation buys, holds and retires, and turns that record into the claims and disclosures made about it.
In the UK the rules touching credits are a disclosure paragraph, general consumer law and government guidance, so the register has to hold the facts each of them asks about.
What the software does
What is carbon credit software for? A register from purchase to claim
Carbon credit software is a register: it records what was bought, from which programme and methodology, and what happened to each tonne.
Most platforms in this space are built by people who know the market well, and the good ones make each credit traceable from contract to registry retirement.
The reason a register matters is that each rule asks a different question of the same credits.
UK SRS S2 asks what you plan to use, consumer law asks whether a claim is true, and a buyer’s procurement team asks what you retired and when.
The neutrality claim itself is covered on carbon neutral software, and targets on net zero software.
- 1
Buy
Programme, methodology and version, vintage, project, price, contract terms.
- 2
Hold
Serial numbers on the registry, delivery status, pending units kept apart.
- 3
Check
CCP status of the methodology version, dated; any rating, as an opinion.
- 4
Retire
Retirement on the registry, for a stated purpose and year.
- 5
Disclose
Planned use under UK SRS S2 ¶36(e); claims tested against consumer law.
What UK SRS S2 asks
What must a listed company disclose about credits? Planned use, in four limbs
UK SRS S2 asks about carbon credits in one place, ¶36(e), and only where a net greenhouse gas target relies on them.
The paragraph covers “the entity’s planned use of carbon credits to offset greenhouse gas emissions to achieve any net greenhouse gas emissions target”, in the words of the standard.
For listed companies in UKLR 6, 14, 15, 16 and 22 this is comply or explain for periods beginning on or after 1 January 2027, under FCA PS26/19.
So the register has to hold planned purchases as well as retirements, because ¶B71 makes planned use the disclosure and retired credits optional context.
Read the detail behind ¶36(e)
An entity with no net target owes nothing under ¶36(e), even if it buys and retires credits; the trigger is the target, not the purchase.
Gross emissions stay gross: the Scope 1, 2 and 3 figures under ¶29(a) are reported without deducting credits.
How UK SRS S2 handles targets more widely is on UK SRS S2.
UK SRS S2 ¶36(e)Explore
Law, guidance or proposal
Which carbon credit rules bind you? Fewer than the market suggests
No UK instrument is written for voluntary carbon credits, so most of what binds is general law applied to claims.
The DMCC Act 2024 makes misleading commercial practices unlawful, and its Schedule 20 blacklist names nothing about carbon, climate or offsetting.
The government’s six integrity principles of 15 November 2024 are guidance, and the formal response to its 2025 consultation was promised for summer 2026.
On 2 June 2026 the minister told the Commons it “will be published later this year” (Hansard); this site had not found it as at 23 October 2026.
The checker beside this sorts each instrument by what it is today, so a proposal never reads as law.
Carbon credit rules · pick who you are
2 binding now · 0 made but applying later · 1 proposed only · 3 voluntary
| Instrument | Status | Source |
|---|---|---|
| UK SRS S2 ¶36(e) Binding now | Comply or explain for UKLR 6, 14, 15, 16 and 22 for periods from 1 January 2027: disclose planned use of credits toward any net GHG target. | FCA PS26/19; UK SRS S2 ¶36(e) |
| DMCC Act 2024, Part 4 Binding now | General misleading-practices law applies to any credit-based claim to consumers; Schedule 20 names nothing about carbon. | DMCC Act 2024 Part 4 |
| UK VCNM policy, formal response Proposed only | Consulted 2025; summary of responses 26 March 2026; formal response not found as at 23 October 2026. | DESNZ consultation page |
| UK VCNM integrity principles Voluntary | Six principles of 15 November 2024; “should”, not “must”. | DESNZ principles |
| ICVCM CCP label Voluntary | A market label on programmes and methodologies. | ICVCM |
| VCMI Claims Code Voluntary | A claims standard: Silver, Gold, Platinum. | VCMI v3.1 |
Each status is dated to the instrument linked beside it; a proposal is never shown as law.
Nothing is stored or sent.
Credit quality
What does a quality label actually certify? A methodology version, not a tonne
| Signal | What it is | What it is not |
|---|---|---|
| ICVCM CCP-Eligible | A programme passed ICVCM’s governance assessment | A label on every credit that programme issues |
| ICVCM CCP-Approved | A methodology version passed | A judgement on a project’s delivery |
| VCMI claim (Silver, Gold, Platinum) | A claims standard for companies | “Carbon neutral” |
| Credit rating (AAA to D) | A provider’s opinion | A regulated rating with legal effect |
The ICVCM labels programmes and methodologies, not individual credits, and approval is version by version.
Its assessment status page listed 44 CCP-Approved methodologies as at 12 August 2026, against ten Core Carbon Principles.
VCMI’s Claims Code says credits underpinning a claim “are not counted as internal emission reductions”, which is the line a register must keep.
So a register should hold the methodology version and the date its status was checked, because a label can change after purchase.
Four quality signalsExplore
Four quality signals
CCP-Eligible
A programme passed ICVCM’s assessment; not a label on every credit it issues.
Four quality signals
CCP-Approved
A methodology version passed; not a judgement on a project’s delivery.
Four quality signals
Credit rating
A provider’s opinion, AAA to D; no UK or EU instrument gives it legal effect.
Compliance and voluntary markets
Is a UK ETS allowance a carbon credit? No, and the ledger should say so
A UK ETS allowance is a compliance instrument an installation or operator surrenders against its verified emissions.
The cycle is a verified report by 31 March and surrender by 30 April, in DESNZ’s guidance, with an excess emissions penalty under article 52 of the scheme Order.
The Regulated Activities Order names UK ETS allowances as investments and does not name spot voluntary credits, though a future or contract for difference over one may be caught.
Software that holds both should keep two ledgers; scheme compliance is covered on UK ETS software.
Read the UK ETS detail
The auction reserve price was set at £28 from 8 April 2026 by SI 2026/214.
The FCA’s perimeter guidance on allowances is at PERG 2.6.19D.
Carbon
instruments
instruments
UK ETS allowance
Created under the scheme Order; surrendered against verified emissions.
A specified investment; surrender by 30 April or pay the penalty.Removals and UK codes
What should a register hold for removals? Durability and a monitoring period
Removal credits raise questions avoidance credits do not: how long the carbon stays stored, who monitors it, and what happens on reversal.
The UK has two government-backed domestic codes, the Woodland Carbon Code and the Peatland Code.
A Woodland Carbon Code Pending Issuance Unit is a promise of a future verified unit, so a register should never count it as a tonne already removed.
The EU’s Regulation (EU) 2024/3012 sets a voluntary certification for activities in the Union, so it cannot certify a UK project.
Removal creditsExplore
Removal credits
Woodland Carbon Code
UK government-backed since 2011; Pending Issuance Units are promises of future units.
Removal credits
EU CRCF
Voluntary EU certification for activities in the Union.
Removal credits
Temporary units
Carbon farming and storage-in-products units expire at the end of the monitoring period.
Claims to customers
When does a claim built on credits become a problem? When it reaches a consumer
From 27 September 2026, Directive (EU) 2024/825 bans claims to EU consumers that a product has a neutral, reduced or positive impact based on offsetting.
The separate EU Green Claims Directive has not been adopted and was not withdrawn, according to its procedure file.
In the UK, any credit-based claim is judged by general misleading-practices law, which is why the register’s retirement records matter to marketing as much as to reporting.
The wider rules on environmental claims are on green claims software.
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The tests before you sign
Eight questions for any credit platform, each tied to its source
Each question names the source it comes from and what a passing answer looks like.
Run them on one real credit you hold, because a demonstration portfolio is always clean.
There is no IFRS Accounting Standard specifically for carbon credits, according to the IFRS Foundation, so the finance team will want cost and status history as well.
This site has tested no products
Nothing on this page is a rating, ranking or recommendation of any product.
Carbon credit demo questions · tick the ones you need
The pass tests are our reading of the cited provisions.
Nothing you tick is stored or sent.
For the board
A carbon credit is only as good as the record that proves what it bought and where it went.
That record is what UK SRS S2, consumer law and a customer’s questionnaire all read.
Takeaways
Carbon credit software, in five facts
| Fact | What it means for the register |
|---|---|
| UK SRS S2 asks for planned use only | Hold planned purchases, not just retirements (¶36(e), B71). |
| No UK law is written for credits | Claims are tested under the DMCC Act 2024. |
| ICVCM labels are version-level | Store the methodology version and the date checked. |
| UK ETS allowances are a different instrument | Keep a separate ledger. |
| EU offset-based product claims are banned from 27 September 2026 | Flag consumer claims for EU markets. |
Next: the questions that decide a neutrality claim are on carbon neutral software.
Frequently asked
Carbon credit software, answered
What is carbon credit software?
Software that keeps a register of the carbon credits an organisation buys, holds and retires, with each credit’s programme, methodology, vintage and serial number, and turns that register into the disclosures and claims the organisation makes.
Some products also source credits; this page is about the record.
Is carbon offset software different from carbon credit software?
The terms are used for the same products.
“Offset” describes a use of a credit; the credit is the instrument.
UK SRS S2 itself speaks of “the entity’s planned use of carbon credits to offset greenhouse gas emissions”.
Does UK law regulate carbon credits?
No UK instrument targets voluntary credits or offsetting claims.
General consumer law under the DMCC Act 2024 applies to any misleading claim, the government’s six integrity principles of November 2024 are guidance, and its formal response to the 2025 consultation had not been found as at 23 October 2026.
What does UK SRS S2 require about carbon credits?
Paragraph 36(e) asks for the planned use of carbon credits to offset emissions to achieve any net greenhouse gas target: how far the target relies on credits, which scheme verifies them, their type, whether reduction or removal, and other factors such as permanence.
B71 says only planned use must be disclosed.
For listed companies in UKLR 6, 14, 15, 16 and 22 it is comply or explain for periods from 1 January 2027.
Can carbon credits be deducted from reported emissions?
Not from the gross Scope 1, 2 and 3 figures UK SRS S2 asks for.
VCMI’s Claims Code also says credits underpinning a claim are not counted as internal emission reductions.
What is an ICVCM CCP label?
A label the Integrity Council for the Voluntary Carbon Market attaches to programmes (CCP-Eligible) and to methodologies (CCP-Approved), version by version.
As at 12 August 2026 its status page listed 44 CCP-Approved methodologies.
A credit from an eligible programme is not CCP-labelled unless its methodology version is approved.
Are carbon credit ratings regulated?
Credit ratings from agencies such as BeZero, Sylvera and Calyx are private opinions: no UK or EU instrument gives their grades legal effect, and an AAA from two providers can mean two different things.
A register should store a rating as the provider’s dated opinion.
Is carbon removal software different?
Removal credits carry questions avoidance credits do not: durability, monitoring and reversal.
The EU’s carbon removals framework, Regulation (EU) 2024/3012, is a voluntary certification for activities in the Union, and its carbon-farming and storage-in-products units are temporary and expire at the end of the monitoring period.
Are UK ETS allowances carbon credits?
No. A UK ETS allowance is an instrument created under the scheme Order that an installation or operator surrenders against verified emissions.
It is a specified investment in the Regulated Activities Order; spot voluntary credits are not named there.
Keep the two in separate ledgers.
What are UK carbon codes?
The Woodland Carbon Code and the Peatland Code are the UK’s two government-backed domestic codes.
A Woodland Carbon Code Pending Issuance Unit is a promise of a future verified unit, not a tonne that can be claimed now.
Can a company still call a product carbon neutral using offsets?
In the EU, from 27 September 2026, a claim to consumers that a product has a neutral, reduced or positive impact based on offsetting is banned by Directive 2024/825.
In the UK the test is general misleading-practices law under the DMCC Act 2024.
Has this site rated any carbon credit platform?
No. This page sets out what the rules ask a credit register to hold, each cited to its source, and ranks no product.
Sources
Primary sources
Every rule on this page traces to the instrument listed here.
Checked against 20 sources fromDepartment for Business and TradeFinancial Conduct AuthorityDepartment for Energy Security and Net ZeroUK Parliament, HansardICVCMVCMI
- Department for Business and TradeUK SRS S2 Climate-related Disclosures (PDF), ¶36(e), B70–B71
Planned use of carbon credits toward a net target; only planned use must be disclosed.
- Financial Conduct AuthorityPS26/19 — final rules on UK SRS reporting by listed companies
Comply or explain for UKLR 6, 14, 15, 16 and 22, periods from 1 January 2027.
- Department for Energy Security and Net ZeroPrinciples for voluntary carbon and nature market integrity (15 November 2024)
Six principles; guidance, not law.
- Department for Energy Security and Net ZeroVoluntary carbon and nature markets: raising integrity — consultation and summary of responses
Ran 17 April to 10 July 2025; 200 responses; formal response promised.
- UK Parliament, HansardVoluntary Carbon and Nature Markets, Commons, 2 June 2026
The minister: the response “will be published later this year”.
- ICVCMAssessment status (CCP-Approved methodologies and CCP-Eligible programmes)
Labels attach to programmes and methodologies, version by version.
- ICVCMThe Core Carbon Principles
Ten principles in governance, emissions impact and sustainable development.
- VCMIClaims Code of Practice v3.1 (15 August 2025)
Silver, Gold and Platinum; credits are not internal reductions.
- EUR-LexDirective (EU) 2024/825, Annex I point 4c
Offset-based neutrality claims to consumers banned, applying from 27 September 2026.
- European Parliament Legislative ObservatoryGreen Claims Directive, procedure 2023/0085(COD)
Not withdrawn; status on the procedure file.
- legislation.gov.ukDigital Markets, Competition and Consumers Act 2024, Part 4 and Schedule 20
General misleading-practices law; nothing on carbon in the blacklist.
- legislation.gov.ukRegulated Activities Order 2001 (SI 2001/544), Part III
Spot voluntary credits are not named; UK ETS allowances are.
- Financial Conduct AuthorityPERG 2.6.19D
The FCA’s guidance on emission allowances as investments.
- legislation.gov.ukGreenhouse Gas Emissions Trading Scheme Order 2020 (SI 2020/1265), article 52
The excess emissions penalty.
- Department for Energy Security and Net ZeroParticipating in the UK ETS
Verified report by 31 March; surrender by 30 April.
- legislation.gov.ukSI 2026/214, regulation 2
The UK ETS auction reserve price.
- Woodland Carbon CodeWoodland Carbon Code v3.0, with clarifications (January 2026)
Pending Issuance Units are a promise of future units.
- IUCN UK Peatland ProgrammePeatland Code
The UK’s peatland restoration code.
- EUR-LexRegulation (EU) 2024/3012 (carbon removals and carbon farming), Arts 1 and 3
Voluntary EU certification for activities in the Union.
- IFRS FoundationCarbon credit research (ASAF, July 2024)
No IFRS Accounting Standard specifically for carbon credits.