Carbon Offsets: Growing Pains in a Growing Market
2009

Carbon Offsets: Growing Pains in a Growing Market

publication Evidence: moderate

Author Information

Author(s): Charles W. Schmidt

Primary Institution: National Institute of Environmental Health Sciences

Hypothesis

Are offset buyers really getting what they paid for?

Conclusion

Many carbon offset projects do not meet the necessary requirements for additionality, leading to concerns about their effectiveness.

Supporting Evidence

  • The global market for voluntary offsets tripled from 2006 to 2007, reaching $331 million.
  • Many offset projects, such as methane capture from landfills, were already in place before they began selling offsets.
  • The Government Accountability Office reported that offsets under the Kyoto Protocol had uncertain effects on greenhouse emissions.

Takeaway

People can pay to offset their carbon emissions, but sometimes the projects they support may not actually reduce emissions as promised.

Potential Biases

There is a risk of double-counting offsets and misleading claims about additionality.

Limitations

The offset market lacks a centralized regulatory framework, leading to potential fraud and misrepresentation.

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