NGOs call for the exclusion of carbon offsets from corporate transition plans
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In a new critique of the voluntary carbon market, over 80 non-governmental organizations have urged corporations to exclude carbon offsets from their transition plans, arguing that they are misleading and delay real climate action.
In a letter published on July 2, the NGOs said that allowing companies and countries to meet climate commitments with carbon credits is “likely to slow down global emission reductions” as it simply moves emission reductions from one place to another.
The groups said they are concerned by the renewed efforts to promote carbon offsetting. They identified several reasons-
- Offsetting could delay climate action.
- Carbon offsetting inherently lacks credibility
- There are only so many “quality” credits that could be used as offsets
- The climate funding gap will not be solved by offsetting
Additionally, the letter said, “We call for scientific, ambitious, equitable, robust, credible and transparent rules around carbon accounting and corporate climate target setting. Voluntary and regulatory frameworks on climate transition planning must exclude offsetting.”
This condemnation comes at an important moment for the voluntary carbon market, which has been subject to intense scrutiny in recent years.
Concerns about the quality of certain carbon projects have significantly impacted offset prices, deterring some companies from participating in the market.
The letter’s signatories included NGOs like Oxfam, Amnesty International, Greenpeace, ClientEarth, Carbon Market Watch, Friends of the Earth, and Global Witness.
Supporters of carbon markets argue that offsets are crucial for ensuring companies continue to reduce emissions.
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