Open letter regarding the use of offsets in the EU ETS

The letter expresses concern that carbon offsets are undermining EU climate goals by stifling domestic emission reductions and supporting projects that lack environmental integrity. It specifically highlights the negative impacts of coal-fired power plants and large hydro projects in the Clean Development Mechanism (CDM), as well as the lack of transparency in Track 1 Joint Implementation (JI).

• Between 2008 and 2011, 555 million carbon offset credits were surrendered into the EU Emissions Trading Scheme (ETS), with an estimated cost of €5.9bn.
• The use of international offsets in the EU ETS is contributing to a low carbon price and diverting investment away from Europe, which may hinder domestic emission reductions.
• The EU provides financial support via the CDM to coal-fired power plants in China and India; these projects are described as 'business-as-usual' that lock in CO2 emissions and cause ecosystem and health damage.
• Large hydro projects in the CDM are identified as problematic because they often represent business-as-usual developments that would have occurred without CDM support, potentially replacing real emission reductions in the EU.
• Track 1 Joint Implementation (JI) is criticised for lacking transparency and accountability, with 107 million ERUs issued compared to 13 million under Track 2, creating risks of 'hot-air laundering' via AAUs.

APA

Trio, W., Filzmoser, E., Perry, C., & Stoczkiewicz, M. (2012). Open letter regarding the use of offsets in the EU ETS. Carbon Market Watch. https://carbonmarketwatch.org/publications/open-letter-regarding-the-use-of-offsets-in-the-eu-ets/

Chicago

Trio, Wendel, Eva Filzmoser, Clare Perry, and Magda Stoczkiewicz. Open letter regarding the use of offsets in the EU ETS. Carbon Market Watch, 2012. https://carbonmarketwatch.org/publications/open-letter-regarding-the-use-of-offsets-in-the-eu-ets/.

Wikipedia

{{cite press release |last1=Trio |first1=Wendel |last2=Filzmoser |first2=Eva |last3=Perry |first3=Clare |last4=Stoczkiewicz |first4=Magda |title=Open letter regarding the use of offsets in the EU ETS |publisher=Carbon Market Watch |date=15 May 2012 |url=https://carbonmarketwatch.org/publications/open-letter-regarding-the-use-of-offsets-in-the-eu-ets/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{trio2012open, author = {Trio, Wendel and Filzmoser, Eva and Perry, Clare and Stoczkiewicz, Magda}, title = {{Open letter regarding the use of offsets in the EU ETS}}, publisher = {Carbon Market Watch}, year = {2012}, month = may, url = {https://carbonmarketwatch.org/publications/open-letter-regarding-the-use-of-offsets-in-the-eu-ets/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }