The importance of offsets
There is no doubt that demand for offsets is slipping as room within the EU Trading System for them is limited and uncertainly prevails over the future of cap-and-trade systems outside the EU. Falling prices means less project activity, bringing with it the risk that the global market goes into something of a death spiral. This is not good news for carbon markets, for developing countries and most importantly for the environment.
Offsets have a critical role to play in these early years of beginning to reduce emissions. Not only do they offer flexibility for those economies starting to get to grips with emissions trading systems, but they provide much needed opportunity and capital flow for developing countries to also begin to tackle the challenge of emissions management. In particular, a well designed system can trigger projects in areas such as avoided deforestation and reforestation which represent some of the easiest and most rapidly deliverable reductions on the planet today. As developed and rapidly developing economies will take some time to implement big emissions management projects such as CCS, nuclear and large scale renewables, forestry projects can begin to deliver today given a flow of capital.
Early significant reductions in areas such as forestry are essential for a long term approach to managing global emissions. Such projects will also bring a wealth of additional benefits in areas such as biodiversity and local eco-system management. Offsets are an important tool for accelerating delivery.
March 23, 2010; 8:19 AM ET
Save & Share:
Previous: Let's not 'off' offsets just yet | Next: We need to talk sensibly about CCS and climate change
Posted by: AGWsceptic99 | March 26, 2010 12:55 AM
Report Offensive Comment