Airline pollution deal hinges on complex world of carbon offsets

Friday, 07 October 2016 17:50

This article, on a new emission reduction deal approved by the International Aviation Organization (ICAO), cites recent SEI research that found serious problems with the environmental integrity of credits traded under the Joint Implementation mechanism:

Yet what types of credits, or carbon offsets, will be eligible and how the UN will verify their ecological integrity remains unresolved. The quality of these offsets varies. Last year, the research group Stockholm Environment Institute said about 75 percent of offsets offered through the UN’s second-biggest program had dubious environmental value, including claims that some Russian factories were boosting emissions solely to sell offsets generated by later cutting them. Ultimately, the Montreal accord’s success depends on ensuring offsets bought by airlines are authentic.

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Read SEI work on the potential supply of offsets for the aviation sector »

Source: Bloomberg Markets, US
Language: English