December, 2008
The Stockholm Environment Institute announces the release of a comprehensive
new report on offset programs.
A Review of Offset Programs: Trading Systems,
Funds, Protocols, Standards and Retailers
Download the report
If you wish to receive a printed version of the report, please contact anja.kollmuss[at]sei-us.org
Carbon or greenhouse gas (GHG) offsets have long been promoted as an important element of a comprehensive climate policy approach. Offset programs can reduce the overall cost of achieving a given emission goal by enabling emission reductions to occur where costs are lower. Furthermore, offsets have the potential to deliver sustainability co-benefits, spurred through technology development and transfer, and to develop human and institutional capacity for reducing emissions in sectors and locations not included in a cap and trade or a mandatory government policy. However, offsets can pose a risk to the environmental integrity of climate actions, especially if issues surrounding additionality, permanence, leakage, quantification and verification are not adequately addressed. The challenge for policymakers is clear: to design offset programs and policies that can maximize their potential benefits while minimizing their potential risks. This report is a systematic and comprehensive review of existing offset programs.
The goal of this review is to provide an up to-date analysis and synthesis of the most influential offset programs and activities, to reflect on lessons learned, and thus to inform participants and designers of current and future offset programs. Our intention is to periodically update this review to stay abreast of ongoing developments, and to develop a website portal to make this information more accessible.
Comments and suggestions are welcome: offsets[at]sei-us.org
Content of the Report
General features of offset programs
Market size and scope
Offset project eligibility
Additionality and quantification procedures
Program administration and authority
International offset mechanisms
Clean Development Mechanism (CDM)
Joint Implementation (JI)
Mandatory cap and trade systems (offset features)
Australian Carbon Pollution Abatement Scheme
Canada’s Offset System for Greenhouse Gases
New South Wales Greenhouse Gas Reduction Scheme
Regional Greenhouse Gas Initiative
Western Climate Initiative
Other mandatory systems (offset features)
Alberta-Based Offset Credit System
State Power Plant Rules of Oregon, Washington and Massachusetts
Carbon offset funds
World Bank Carbon Finance Funds
Voluntary cap and trade systems (offset features)
Chicago Climate Exchange
Voluntary GHG reduction programs
Climate Leaders
California Climate Action Registry
Voluntary GHG accounting protocols (entity-wide and offset
project specific)
WBCSD/WRI GHG protocol for project accounting
ISO 14064
Voluntary standards for offset projects
Gold Standard
Voluntary Offset Standard
Voluntary Carbon Standard 2007
Green-e Climate Protocol For Renewable Energy
Green-e Climate program
Offset retailers
The Climate Trust
TerraPass
NativeEnergy
Myclimate