Companies can do better than offsetting

The author contends that voluntary carbon offsetting is risky and unsustainable, often leading to double counting where both a company and a host country claim the same emission reductions. The document proposes a 'contribution claim' model, combined with internal carbon pricing, where companies fund climate action in other countries to support Paris Agreement goals without claiming carbon neutrality. If offsetting continues, the author insists on 'corresponding adjustments' to ensure reductions are not counted toward national targets, while warning that financing projects in countries with low ambition rewards 'climate laggards'.

• Carbon offsetting can undermine global climate action because host governments may forgo planned national measures if voluntary action has already achieved those goals, meaning companies pay for reductions that would have occurred anyway.
• There is a risk of double counting when companies claim emission reductions in developing countries, which may force those host countries to seek reductions elsewhere to meet their own targets.
• The proposed 'contribution claim' model suggests companies finance climate projects to support a host country's Paris Agreement goals and sustainable development, rather than claiming carbon neutrality for themselves.
• A 'levy and fund' approach is suggested as a complement to the contribution model, where companies use revenues from internal carbon pricing to fund climate action that benefits local communities.
• To prevent double counting within the existing offsetting model, 'corresponding adjustments' are necessary so that reductions count only toward the company's pledge and not the host country's national pledge.

APA

Dufrasne, G. (2021). Companies can do better than offsetting. Carbon Market Watch. https://carbonmarketwatch.org/2021/01/28/companies-can-do-better-than-offsetting/

Chicago

Dufrasne, Gilles. Companies can do better than offsetting. Carbon Market Watch, 2021. https://carbonmarketwatch.org/2021/01/28/companies-can-do-better-than-offsetting/.

Wikipedia

{{cite press release |last1=Dufrasne |first1=Gilles |title=Companies can do better than offsetting |publisher=Carbon Market Watch |date=28 January 2021 |url=https://carbonmarketwatch.org/2021/01/28/companies-can-do-better-than-offsetting/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{dufrasne2021companies, author = {Dufrasne, Gilles}, title = {{Companies can do better than offsetting}}, publisher = {Carbon Market Watch}, year = {2021}, month = jan, url = {https://carbonmarketwatch.org/2021/01/28/companies-can-do-better-than-offsetting/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }