Carbon Offsets: The U.S. Voluntary Market Is Growing, but Quality Assurance Poses Challenges for Market Participants

The U.S. Government Accountability Office found that, by and large, a lack of information surrounding carbon offsets leads to problems determining additionality and the existence of quality assurance mechanisms. More federal oversight could add transparency and boost consumer protection but may also introduce trade-offs, such as a chilling effect on innovation, higher costs and less flexibility.

More than 600 organizations develop, market and sell offsets in the U.S. The supply has grown from 6.2 million tons in 2004 to 10.2 million tons in 2007. The supply is concentrated in Texas and Virginia, which accounted for about a third of offset projects. Nearly half of offsets were produced by methane gas related projects. Global prices per ton ranged from $1.83 to $306, with a volume-weighted average of $6 per ton.

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