Tonne-for-tonne offsetting has historically relied upon the cheapest possible carbon credits that do little to benefit the climate and represent no real pollution cost for companies. Polluters should move to money-for-tonne contributions instead, based on an internal carbon price (WWF recommends $50-250), which would encourage the purchase of higher quality carbon credits with co-benefits. The internal carbon price in turn could be proportional to companies’ revenues or profits. 

Climate Neutral Now

At COP27, governments agreed to create a “contribution unit” as part of the establishment of new carbon markets under the Paris Agreement - a clear sign of support for this evolution in claims

Yet as of last year renewable offsets remain widespread, despite deep doubts about their efficacy. In the broadest investigation yet of how companies have been relying on junk offsets, Bloomberg Green analyzed 190 million tons of carbon offsets purchased in more than 50,000 transactions in 2021. Close to 40% came from renewable-energy projects. According to Ecosystem Marketplace estimates, the total carbon offsets market was worth $2 billion in 2021.