Tuesday, December 5, 2006

Finance: CO2 offset funds increase in popularity

Voluntary carbon market "set to explode"

The global market for voluntary carbon offsets could grow by as much as forty-fold between 2005 and 2010 to reach 400m tonnes per year, according to an assessment by climate consulting firm ICF.

Against a backdrop of escalating political attention to climate change, some organisations are looking to enhance their green reputation. Others are motivated primarily by a desire to gain experience in anticipation of future extension of official cap-and-trade schemes. Some see the issue as a matter of principle. There is also growing interest in offsets as a hedge against possible criticism for inaction over global warming.

Companies are increasingly looking to offset emissions up and down the supply chain, including those of consumers.

A lack of agreed generic standards continues to be the sector’s main weakness, ICF says.

Emerging standards for offset project development and verification such as the Voluntary Carbon Standard are a positive sign, it concludes.

ICF: press release

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