Carbon Offsets Growing Pains in a Growing Market

There's a new market growing in the United States, but unlike others trading in tangible commodities, this one trades in the absence of something that no one wants: greenhouse gases in the atmosphere. According to industry figures, the global markets for both voluntary offsets and those sold to meet compliance requirements are growing rapidly, and U.S. offset-sales will likely accelerate further under the Obama administration. However, mounting evidence shows that offsets often don't deliver a measurable, genuine reduction in net emissions. Afthough a number of independent market-based standards have emerged to impose a measure of honesty and integrity on the business of offsets, many energy and Earth science experts urge policy makers not to bank too heavily on offsets as a carbon mitigation strategy.