This scheme for voluntary carbon offsets misses the mark

February 09 2009
By Jonathan Shopley

The UK government’s Department of Energy and Climate Change (DECC) Quality Assurance Scheme for Carbon Offsetting (the DECC scheme) was launched several weeks ago, without much fanfare. This government initiative aims to provide reassurance, to individuals and organisations choosing to compensate or ‘offset’ their unavoidable greenhouse gas emissions, that their efforts to do so will make a real difference. While a welcome stimulus to the emerging ‘voluntary carbon market’ to get its house in order, there are flaws in the DECC scheme which could be counter-productive.

Initially, the DECC scheme recognises only those offsets approved under formal UN standards, such as Certified Emission Reductions (CERs). The DECC scheme does not recognise Verified Emissions Reductions (VERs), at least not yet. VER projects are developed according to rigorous voluntary certification standards which ensure the highest-quality emissions reductions. Like CERs, VERs are verifiable, additional and permanent. Because the DECC scheme does not recognise VERs yet, this government programme could set back the expansion of the voluntary market for carbon reductions, the exact opposite of what its policy should be.

ICROA is the leading membership organisation for carbon reduction and offset providers in the voluntary carbon market. Our members have developed an industry-leading code of best practice, which requires members to use only the highest standards and certifications for their carbon foot printing, greenhouse-gas reduction advice and offset products. ICROA members are highly respected carbon reduction and offset providers, and member companies are based in the USA, Europe and Australia.

The DECC scheme has been in development for several years, during which the market for VERs has changed dramatically. Between 2006 and 2007 the voluntary carbon market tripled and the Voluntary Carbon Standard, which is emerging as one of the leading voluntary certification programmes, was launched. The second stage of the DECC scheme would allow for voluntary offset standards to be reviewed for inclusion in a subsequent version of the DECC Scheme — but why wait? This delay is unnecessary and ill-advised. ICROA members are concerned that the UK government’s failure to recognise high-quality VERs today could damage the voluntary carbon market.

The benefits of the voluntary carbon market

The voluntary carbon market allows consumers and businesses, which are not covered by UN reduction targets, to take significant action to reduce their greenhouse gas emissions. Their purchases result in carbon reductions above and beyond those required by treaty and law. ICROA members sell VERs and CERS to their customers, but the majority of offset credits sold by our members are VERs.

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