Standards for voluntary offsetting
The OCC led work to develop a code setting standards for carbon offsetting.
Individuals and businesses can choose to “offset” the carbon emissions they generate e.g. by flying. Offsetting involves paying for a ‘carbon credit’ generated from a project which reduces or avoids emissions elsewhere.
Carbon offsetting is not a cure for climate change but it can make an important contribution if based on carbon credits which come from robust emissions reduction projects that are credited, marketed and properly accounted for. The UK is a world market leader for investing in offsets. At present the sale of voluntary offsets is unregulated and there is a wide range of standards in use in the industry leading to widespread consumer confusion and lack of transparency. Some schemes have been exposed as being of poor quality and unlikely to lead to genuine emissions reductions, damaging consumer confidence and harming the interests of bona fide schemes.
The OCC team worked with major offsetting providers and stakeholder groups to develop a set of proposals that would support the development of the voluntary offsetting market and help it regain consumer confidence.
The project was completed in January 2007 with the publication of the draft Code for consultation. Defra is taking forward development of the Code and expects to launch it by the end of 2007. The Code will contain an accreditation system under which good quality offset products will be eligible to carry a quality mark indicating that they represent genuine carbon reductions and meet best practice on transparency and accounting procedures.
The consultation draft Code of Best Practice is available here. (in PDF
format)
Further information on offsetting is available at
http://www.defra.gov.uk/environment/climatechange/uk/carbonoffset/faqs.htm
Page last modified: 27-11-07
Page published: 27-11-07