Understanding Carbon Credits: A New Currency for Climate Action LONDON, UK

As Europe intensifies its efforts to tackle climate change, carbon credits have emerged as one of the most powerful tools in the global transition to net zero. But what exactly are carbon credits, and why are they becoming central to corporate climate strategies across the UK and the European Union?

What Are Carbon Credits?

Carbon credits represent a verified reduction or removal of one metric tonne of carbon dioxide (CO₂) or its equivalent in other greenhouse gases. These reductions are achieved through certified projects such as reforestation, renewable energy, or carbon capture initiatives. Each credit is independently verified, often by standards like Verra or Gold Standard, and can be traded on voluntary or compliance markets.

In essence, carbon credits serve as a mechanism to “offset” unavoidable emissions. For businesses aiming to meet net zero targets, these credits provide a way to balance their carbon ledger when direct reductions are not yet feasible.

Why Carbon Credits Matter in the UK and Europe?

The UK Climate Change Act and the European Green Deal are legally binding frameworks pushing companies to reduce emissions rapidly. From Scope 3 emissions reporting to ESG compliance, businesses across all sectors are under pressure to demonstrate measurable environmental responsibility.

Carbon credits are now integrated into ESG reporting frameworks and serve as tangible proof of climate commitment. This is particularly relevant as sustainability disclosure requirements (SDRs) become mandatory in the UK and across the EU under frameworks like CSRD (Corporate Sustainability Reporting Directive).

Voluntary vs. Compliance Carbon Markets

Compliance markets are regulated by government bodies (e.g. the EU Emissions Trading System).

Voluntary carbon markets (VCMs), where Doowe UK operates, are driven by corporate climate strategies rather than legal obligations.

The voluntary market allows businesses, SMEs, and even individuals to invest in emission reduction projects, enabling a broader participation in climate action. These markets are growing fast—valued at over $2 billion in 2023—and are set to play a key role in Europe’s race to climate neutrality.

Doowe UK’s Role in the Carbon Ecosystem

At Doowe UK, we are building a robust carbon project development and brokerage infrastructure that allows verified carbon credits to be tracked, sold, and integrated directly into business operations.

Our carbon API platform offers real-time emissions estimation and carbon offsetting options for businesses and online retailers. Whether you’re a manufacturer in Manchester or an e-commerce brand in Berlin, our tools are designed to embed climate intelligence directly into your workflows.

Doowe is also working to connect UK-based and European businesses with certified carbon offset projects around the world, while also investing in local projects—ensuring not just climate benefits, but also social and economic co-benefits in the communities we serve.

What Businesses Should Do Next?

• For companies in the UK and Europe, the message is clear: carbon credits are not just about compliance—they are about leadership.
• Begin by measuring your emissions using tools like our API platform.
• Reduce emissions wherever possible—through energy efficiency, supply chain optimisation, and sustainable practices.
• Use verified carbon credits to offset the remainder, and report these actions transparently.

The carbon market is evolving, and with increasing scrutiny on greenwashing, transparency and traceability are more important than ever. That’s where Doowe UK steps in—with trusted partnerships, certified credits, and digital infrastructure built for the future of climate accountability.