Climate Advisers shares what companies planning to buy offsets need to know about the social, political, legal and market dynamics driving global carbon offset markets.
In the face of growing public and scientific pressure to raise global climate ambition, more and more major corporations in the United States and elsewhere are adopting ambitious climate goals. This proliferation of climate commitments has fueled extraordinary growth in the voluntary market for carbon offsets, defined here as carbon credits that are used to compensate for emissions. This trend will likely continue for at least the next several years and possibly longer as corporations strive to meet new voluntary pledges to become carbon neutral.
This report aims to clarify the role American companies can play in ensuring that the potential of offset purchases is realized. To do so, Climate Advisers explores some of the social, political, legal and market dynamics companies planning to buy offsets to achieve their climate goals will need to navigate, as well as the criticisms and reputational risks associated with the sector, and offers recommendations to those trying to navigate this complex landscape.