BRIEF OF CARBON OFFSET EXPERTS AS AMICI CURIAE IN SUPPORT OF RESPONDENT

The document supports the SEC's climate-related disclosure rule, specifically the requirements for companies to report the use of carbon offsets when they are a material part of achieving climate goals. It argues that because the voluntary carbon market lacks standardization and is often flooded with low-quality credits, investors need project-level transparency to assess a company's actual risk exposure. The brief highlights that reliance on flawed offsets can lead to 'greenwashing' litigation and financial instability as demand shifts toward more expensive, high-integrity credits.

• The SEC Rule mandates that when carbon offsets are a material part of a company's plan to reach climate targets, the company must disclose the aggregate amount of offsets expensed, capitalized, and any losses incurred, as well as the nature, source, location, and cost of the offsets.
• Carbon offsets are primarily derived from carbon credits, which are split between regulated compliance markets and unregulated voluntary markets. Compliance credits in the United States are generally more expensive, with values between $15.38 and $29.84, compared to a 2023 voluntary market average of $6.53.
• The voluntary carbon market is characterized by a lack of regulation and standardization, leading to the prevalence of low-quality credits that often over-count emissions reductions. Forestry and land-use credits, which made up about 40% of total issuances from 2000 to 2023, are particularly prone to over-crediting.
• Companies relying on low-quality offsets face significant reputational and legal risks, including accusations of 'greenwashing' and class-action lawsuits. Examples include ongoing litigation against Delta Air Lines and Danone Waters of America, and a lost case for KLM in the Netherlands.
• There is a projected financial risk for companies as the market shifts toward high-integrity credits. BloombergNEF suggests that while low-standard credits might trade at $14 per metric ton in 2050, the adoption of rigorous standards and net-zero commitments could drive prices up to $238 per metric ton.

APA

Sasso, M. Y., & Jr., F. W. S. (2024). BRIEF OF CARBON OFFSET EXPERTS AS AMICI CURIAE IN SUPPORT OF RESPONDENT. Clean Air Task Force. https://cdn.catf.us/wp-content/uploads/2024/08/15173056/sec-amicus-brief.pdf

Chicago

Sasso, Mary Y., and Francis W. Sturges, Jr. BRIEF OF CARBON OFFSET EXPERTS AS AMICI CURIAE IN SUPPORT OF RESPONDENT. Clean Air Task Force, 2024. https://cdn.catf.us/wp-content/uploads/2024/08/15173056/sec-amicus-brief.pdf.

Wikipedia

{{cite report |last1=Sasso |first1=Mary Y. |last2=Jr. |first2=Francis W. Sturges, |title=BRIEF OF CARBON OFFSET EXPERTS AS AMICI CURIAE IN SUPPORT OF RESPONDENT |publisher=Clean Air Task Force |date=15 August 2024 |url=https://cdn.catf.us/wp-content/uploads/2024/08/15173056/sec-amicus-brief.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sasso2024brief, author = {Sasso, Mary Y. and Jr., Francis W. Sturges,}, title = {{BRIEF OF CARBON OFFSET EXPERTS AS AMICI CURIAE IN SUPPORT OF RESPONDENT}}, institution = {Clean Air Task Force}, year = {2024}, month = aug, url = {https://cdn.catf.us/wp-content/uploads/2024/08/15173056/sec-amicus-brief.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }