Trade and natural resources
Going carbon neutral: how the retail carbon offsets market can further global warming mitigation goals
Is the retail carbon offset market living up to its potential?
Authors:
M.,C. Trexler; L., H. Kosloff; K. Silon
Publisher:
The Katoomba Group's Ecosystem Marketplace, 2008
Based on an initiative taken by two environmentally minded entrepreneurs, there is now a long line of efforts to encourage individuals and companies to go partially or entirely “carbon neutral” by developing products and services with carbon offsets built in.
The goal of this article is to illustrate what needs to happen in the market to assure consumers that they are receiving a quality product, and thus build a secure and larger market. The paper profiles the retail carbon offsets market and explores key technical challenges facing the market.
The authors pose several questions in order to examine the extent to which the retail carbon offsets market contribute to climate change mitigation objectives to further discuss what makes a “good” carbon offset for purposes of carbon neutral products and services.
The paper concludes that certain outcomes will need to be achieved in order for the market to live up to its potential, which includes:
- to demonstrate the existence of a successful business model that shows consumers’ willingness to pay for products and services that provide climate change mitigation benefits
- to use the retail offsets market to educate the public about climate change, and thus contribute to effective climate change policy development.
- to ensure that offsets have environmental integrity and that a quality commodity is being sold.
