Are Carbon Offsets Credible?

Carbon credits are coming under increasing scrutiny. The Guardian ran an article last week that alleged that 90% of rainforest carbon credits issued by Verra, manager of the world’s leading voluntary carbon markets program, the Verified Carbon Standard (VCS) Program, did not represent genuine offsets.  And, comedian John Oliver made the entertaining case that carbon offsets do not deliver the emissions benefit that they claim.  

This week, our guest Dirk Forrister, President and CEO of the International Emissions Trading Association (IETA) helps us understand the current state of the carbon markets. 

Here are some of the questions that Peter and Jackie asked Dirk: What is your response to the critics of carbon markets – including John Oliver and The Guardian? To improve credibility, some groups are advocating that avoidance credits should be banished, and only removal credits should be supported – do you agree with that perspective? When do you expect that countries can trade credits across borders? Does the Article 6 agreement ,made during COP 26, facilitate international trade? Do you think Canada could use Article 6 to offset the emissions for operating LNG export terminals?  Are you concerned by the price volatility in carbon credit markets? 

Content referenced in this podcast: 

• Our weekly publication, the ARC Energy Charts has our 2023 outlook for the Canadian oil and gas industry revenue, cash flow, and capital spending – see the last page 
• The Guardian, January 18, 2023 “Revealed: More than 90% of rainforest carbon offset credits by biggest provider are worthless, analysis shows” 
• John Oliver show on carbon offsets  
• International Emissions Trading Association (IETA) website: https://www.ieta.org/ 

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