Auditors can't save carbon offsets

Abstract

The theory behind carbon offset projects is appealing: Instead of an organization cutting its own emissions, it can fund lower-cost carbon-reducing projects elsewhere to "offset" its emissions. The reality has been less encouraging. Most carbon offset projects that have been closely scrutinized-including projects for forest protection, renewable energy, and methane-reducing methods of rice cultivation-have greatly exaggerated their climate benefits. More than 80% of issued credits might not reflect real emission reductions. This has alarmed potential offset purchasers and stalled carbon offset markets. Efforts to resuscitate the beleaguered offset market tout third-party auditing as "essential" to ensuring credit integrity. That reliance is misplaced.