Taking Stock of the Role of Offsets in Corporate Carbon Strategies
The newest report of Forest Trends’ Ecosystem Marketplace, Buying In: Taking Stock of the Role of Offsets in Corporate Carbon Strategies has been launched. It takes a deep dive into the how and why of offsetting and sends some strong and important signals for climate and forests.
of July 2016
The report is available for download here
, and you can sign up
for a free webinar
about its findings on Wednesday,
August 2 at 11 a.m. EDT here
Ecosystem Marketplace has been tracking the carbon markets for over a
decade, and this new report
complements this research with a deep-dive into the demand side of carbon
offsetting. Using companies’ public disclosures to CDP, we are able to look
into the "who’s who” of offsetting and understand how purchasing or originating
carbon offsets fits into companies’ larger emissions reductions strategies.
are some of the report’s key findings:
Offsetting is buying your way into the problem –
not out of it. Companies
engaged in offset-inclusive carbon management implemented emissions
reductions measures at a higher rate compared to companies that did not
include offsetting in their strategy. Collectively, the 314 CDP disclosers
engaged in offsetting spent $42
billion on direct emissions reductions in 2014 – more than the $41
billion spent by the much greater number of companies (1,522) that did not
purchase or originate offsets.
- Of the companies reporting to CDP, 435 companies have
now implemented an internal
price on carbon, and 583 said they plan to implement one
within the next two years. Compared to the median internal carbon price
reported by companies – $18/tonne
– current offset prices may be considered a deal
(voluntary offsets averaged $3.3/tonne last year). Offset buyers were nearly five times as likely
to internally price carbon compared to other companies, reflecting their
more acute perception of climate change risks.
- Most of the offset buyers come from the finance sector, where one in five firms voluntarily purchased offsets;
top buyers in this category included JPMorgan Chase & Co, Deutsche
Bank, and Credit Suisse.
Tags: Ecosystem valuation | Pollution
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