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What are offsets?

Environmental offsetting enables a company, country or individual to be legally or morally allowed to pollute or otherwise damage the environment as long as they pay someone else somewhere else to attempt to compensate for some or all of the negative consequences. The most common offsets are carbon offsets and biodiversity offsets, but there have been discussions about introducing ecosystem and even cultural offsets.

This section focuses on carbon offsets. To read more about biodiversity or other offsetting visit www.fern.org/biodiversityoffsetting.

What are carbon offset projects?

Carbon offsets create carbon credits which businesses, countries and individuals can buy to compensate for emissions reductions they would otherwise have to make. Carbon offsets are a key part of most existing and planned carbon trading schemes, though they have now been ruled out of the EU Emissions Trading System from 2020 onwards. Carbon offset credits can be bought voluntarily by those wishing to assuage guilt or show their green credentials, but the majority are bought by businesses and governments legally bound to reduce their emissions, or by governments seeking to strengthen the carbon trading market.

Carbon offsetting in general has a number of systemic flaws, most of which are dealt with in Fern’s report Trading Carbon. How it works and why it is controversial and briefing Designed to Fail. Carbon Trade Watch also outlines a number of offsetting projects that have intended and unintended negative consequences.

Forest carbon offsets are particularly problematic as forest carbon sinks can easily become carbon sources. Carbon dioxide through deliberate human activities such as intensified forest harvests and changes in land use, as well as natural events such as pest infestations, diseases and forest fires. Other concerns unique to forest carbon offsets are the impossibility of measuring the amounts of carbon being stored and sequestered by forests. For more information about the problems with forest carbon offsets see Carbon Discredited: Why the EU should steer clear of forest carbon offsets and Counting the cost: forest credits and their effect on carbon markets.

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Most recent publications

Will carbon markets ever deliver for southern government, forests and people?

This statement, endorsed by 57 prominent human rights and environmental organisations from Europe, Africa, Asia,and North America, argues that carbon markets will never deliver for southern governments, forests or people.

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Comment on the COP21 - a forest perspective

Forests barely feature in the draft text, but runaway climate change could devastate the forests which more than a billion people directly rely on for their survival. Forests also play a crucial role in regulating the climate. Whichever way you look at it, the outcome of the Paris agreement is also an outcome for forests.
 
Kate Dooley  is in Paris, tracking the developments in the UN climate summit. She has written this overview of the talks from a forests perspective for Fern. Check back later in the  week for  further perspectives from Kate and other contributors.

New research shows risk of including land use and forests in EU’s emissions target

Two days before the European Union closes its consultation on the role that land use, land use change and forestry (LULUCF) should play in EU climate effort, new research reveals that including this sector in emissions reductions plans would cause havo

Impacts on the EU 2030 climate target of including LULUCF in the climate and energy policy framework

The European Union (EU) has a target to reduce emissions by at least 40 per cent by 2030. This is an economy-wide target and therefore includes the Land Use, Land Use Change and Forestry (LULUCF) sector. This study looks at how to integrate LULUCF into the EU’s 2030 Climate and Energy Framework.

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Fern’s response to EU LULUCF Consultation

Fern's response to this consultation concludes that the challenge of limiting global warming to two degrees is so great that effort should be made in all sectors. By maintaining Land Use, Land Use Change and Forestry (LULUCF) separately, the EU avoids reducing its ambition and gives itself the opportunity to create real ambition to maintain carbon stocks and reduce emissions in LULUCF.

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PDF iconLULUCF consultation_Fern.pdf243.17 KB

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