This report is the second in our Operationalising a Carbon Regulator series where we consider the feasibility of setting up an independent regulator to plug some of the gaps in carbon accounting regulation and move to a more robust, data driven Net Zero economy.

Key insights

The report highlights seven major gaps in carbon accounting regulation:

• Lack of coordination between regulators and government
• Absence of detailed methodologies and calculations guidance within existing regulations and standards
• Lack of third-party verification requirements on disclosures and claims, and inconsistent verification processes
• Limited action on misleading claims. Lack of mediation for competing claims on the carbon intensity of products and/or services
• Lack of standardised emissions factor datasets and significant gaps in availability of Scope 3 emissions factors
• No standardised qualifications/accreditations for carbon accountants
• No digital oversight to encourage interoperability and data sharing

The report sets a series of proposed regulatory functions that a carbon regulator could support:

• Improve alignment between existing regulators
• Oversee third-party verification requirements and accreditation of verifiers
• Support the Competition and Markets Authority and the Advertising Standards Authority in investigating green claims
• Issue guidance on accurate emissions factor use and set requirements on dataset owners to keep them updated and aligned.
• Support bodies such as the Carbon Accounting Alliance in developing qualifications for carbon accountants
• Data best practice guidance and open data licensing conditions could be developed or coordinated by a proposed regulator to improve exchange of emissions data.

Keep an eye out for future reports in this series, where we dive into international considerations for a Carbon Regulator.