ECO is concerned to see that the L.6 adopted ADP text leaves open the option of continuing to generate and trade offset credits. To keep global average temperature increase to 1.5ºC or less—and ECO is excited to see support from new quarters on this imperative—we should phase out all fossil fuel emissions no later than 2050.
Using offsets is like ‘shuffling deck chairs on the Titanic’. Delaying action might be OK for ships sailing in iceberg-free waters. But iceberg-free waters are what we’re in Paris to avoid. And offsets effectively reduce the ambition of the cap they are applied to. The INDCs already place us on track for a world that’s 3°C warmer (hence icebergs unlikely). Weakening their already woeful ambition would put us at even greater risk of climate catastrophe.
If markets are to be used for mitigation purposes, ensuring environmental integrity and contributions to sustainable development are imperative. Trading should be under ambitious caps, expressed as multi-year national carbon budgets. Credits should be real, permanent, supplemental, verified and ensure no double counting. Shares of proceeds would help to create needed new and additional climate finance.
The Clean Development Mechanism created structures that could transform it from an offset mechanism to one that acts as a channel for climate finance. This would give wealthier countries an MRV-able channel to contribute to their climate finance obligations and help countries in need of support achieve mitigation outcomes. It would also reduce some risks of double counting. The private sector could still contribute in a spirit of corporate social responsibility, but, again, as climate finance instead of offsets.
We need real emissions reductions brought about through transformative change. There is just not enough room in the remaining global carbon budget to waste time shuffling offset credits.