Study Reveals Carbon and Environmental Markets Key to Decarbonisation

• 90% of respondents are expecting an increase in their demand for carbon allowances due to new ETS carbon regulations.

• British, French and German Data Centre Operators are significantly behind on net zero targets -

• 67% of respondents identify technology availability as a key barrier, followed by funding (64%) and knowledge (63.3%)

• With both private sector financing solutions and carbon markets being the focus of this year’s COP, the survey offers valuable insights into the priorities of Europe and the UK’s largest carbon emitters.

A survey covering 500+ organisations in the UK, Germany, and France, many governed by the EU and UK Emissions Trading Schemes, highlights varying approaches to decarbonisation and strategic planning from the industries responsible for the highest levels of carbon emissions on the continent.

The report, titled "Decarbonising the Future: Navigating ETS Reforms and Net Zero Solutions," includes results gathered from CFOs and senior risk management professionals operating across the aviation, shipping and construction, data centre and manufacturing sectors.

The results show marked disparities between British, French and German businesses when it comes to their decarbonisation strategies and readiness for changes in carbon regulations.

The findings represent a clear indication of how Europe’s private sectors, within its three largest economies, are approaching carbon markets and decarbonisation.

Tim Atkinson, Director for CFP Energy, remarked on the survey findings:

“It’s encouraging to see many of the survey participants are planning for rises in future ETS carbon prices and taking advantage of the flexibility carbon markets offer to manage rising compliance costs, whilst technology challenges are addressed. It has never been more important for businesses to ensure they are prepared for the paradigm shift of tougher targets and higher carbon prices that are set to impact both the UK and EU Emissions Trading Schemes over the next 5-10 years.”

The survey findings reveal technological gaps and decarbonisation challenges:

• 68% of respondents said that the lack of available technology is hindering their decarbonisation efforts.

• 80% of UK respondents highlight a lack of technology as a barrier to decarbonisation.

• UK businesses see carbon capture as the least effective way to decarbonise compared to other technologies and products.

The findings provide media attendees, industry stakeholders and policymakers with clear indications of where the priorities of the largest carbon emitters in Europe and the UK lie when it comes to carbon markets, decarbonisation and Net Zero.

Access the full results here.