Title
Voluntary Offsets
Summary
Contents
Introduction 5
Offsets: An Overview 6
Offset Types and Examples 8
Biological Sequestration. 9
Renewable Energy Projects. 9
Energy Efficiency. 10
Non-CO2 Emissions Reduction. 10
Potential Supply of Offsets 13
Potential Benefits of Offsets 16
Cost-Effectiveness 16
Potential Co-Benefits 18
Potential Benefits to Developing Nations 19
Other Potential Domestic Benefits 21
Potential Concerns 22
Integrity Concerns 22
Additionality. 22
Measurement. 23
Double-Counting. 24
Permanence. 24
Leakage. 25
Delay of Technology Development 26
Transaction Costs 26
Concerns in Developing Nations 27
Considerations for Congress 27
Boxes
Policy Alternatives to Offsets 12
Figure 1. Estimated Annual Supply of Offsets from U.S. Agriculture and Forestry Sectors at Different Carbon Prices (in 2015) 14
Figure 2. Estimated Annual Supply of Offsets from U.S. Methane and Nitrous Oxide Reduction Projects at Different Carbon Prices (in 2015) 15
Figure 3. Effect of Three Offset Scenarios on Carbon Price Under Framework of S. 280 17
Figure 4. Estimated Contribution from Offsets by Type Under S. 280 19
Figure 5. CERs Issued by Offset Type (as of February 2008) 20
Figure 6. Projected CERs Issued by 2012 21
Table 1. Comparison of Offset Treatment in Cap-and-Trade Proposals in the 110th Congress 30
Table 2. Comparison of Offset Treatment in GHG Emissions Reduction Initiatives in the U.S. States 35
Table 3. Comparison of Offset Treatment in International Emissions Trading Programs 37