US renewable energy company Econergy International yesterday published a code of best practice for carbon offset programs across the Americas - the latest in a string of similar blueprints to flood the burgeoning carbon offset market.
The company said the code would help to improve the transparency, strength and reliability of carbon offsetting programs, which allow people to mitigate their greenhouse gas emissions by paying for initiatives such as tree planting.
However, the new code threatens to heap further confusion on consumers and businesses that have already been bombarded with similar guidelines out of the UK and Europe.
The British government admitted in January, when it released a draft version of its own gold standard for carbon offset programs, that there was a huge amount of confusion amongst the public and even ministers.
UK environment minister Ben Bradshaw said at the time: "There is some confusion out there, not just among consumers - even at times among government ministers. That's why this government will become the first in the world to publish a standard for carbon offsetting."
But critics have argued that the glut of various offsetting standards, while well intentioned, could serve to further confuse customers unsure of the merits of different labelling and standards schemes.
There have also been questions raised over the regulation of offset schemes, with the UK's Environmental Audit Committee acknowledging in July this year that some were not living up to their promises.
However, despite these concerns carbon offsetting is set to become a lucrative industry, with eco-conscious consumers now commonly prepared to pay a premium for products and services, such as air flights, that offer a CO2 offset.
The Econergy code sets out stringent regulations for companies offering Verified Emission Reductions, including third-party monitoring and testing, background checks for offset providers and projects, and clear guidelines on the social and environmental benefits they aim to achieve.
Mike Ashford, Econergy's Senior Vice President of Carbon Markets said that the new guidelines were essential for establishing consumer confidence in offsets. "Scepticism about offsets is a useful and expected part of the learning process in the US," he said. "But given the severity of the problem, we can't afford to dismiss this incredibly powerful tool for changing the global economy. "
