ENDS special report on voluntary carbon offset: our findings
Charles Henderson authored a special report on the voluntary carbon offset market, published by leading publication, ENDS in early October 2010.
You may want to read this report if you are voluntary buyer, or indeed want to see the market through the eyes of a buyer. ‘Voluntary buyer’ is defined as an organisation, which buys carbon credits not for the sake of compliance or market speculation but rather to support environmental, carbon reduction or marketing strategies.
The report covers:
- the impact of the financial crash and recession on voluntary offsetting and the highlights of emerging new practices
- the evolution of standards to ensure credits have environmental integrity
- key trends in designing and implementing offset programmes
- developments in the carbon offset supply industry, including projects, developers and retailers
- likely next steps in voluntary carbon offsets and offsetting.
The report reaches a number of conclusions. The first is that, despite the financial crash and sustained criticisms, voluntary offsetting has not died. Rather, both buyers and providers of voluntary offsets have grown smarter. Just as the quality of voluntary offsets has improved, so questions have intensified around compliance-grade credits, and especially UN Clean Development Mechanism certified emission reductions (CERs). Until the UN scheme makes significant further improvements, properly verified voluntary offsets now arguably offer a stronger quality proposition to non-compliance buyers.
Buyers now predominantly offset only under credible, broader carbon strategies. Many use offsetting in more discriminating ways, for example tied to product offerings. More offsetters are getting directly involved in designing carbon-cutting projects that are aligned with their business and customers. The most obvious development in offsetting has been the continued entry of major financial institutions into the voluntary market.
The huge potential of forestry offsets will be an exciting new chapter, but an uncertain policy framework, erratic carbon supply pipeline, further recessionary fears and competing carbon legislation mean that voluntary offset is not out of the woods yet.
Please contact ENDS to order your copy.
Email: subs@ends.co.uk Tel: +44 (0)20 8267 8123