OPEN LETTER regarding the use of offsets in the EU ETS

The letter expresses concern that 555 million carbon offset credits were surrendered into the EU ETS between 2008 and 2011, costing an estimated €5.9bn. The signatories argue that offsets stifle domestic reductions, support business-as-usual coal and large hydro projects in the CDM, and allow for 'hot-air laundering' through Track 1 Joint Implementation.

• Between 2008 and 2011, 555 million carbon offset credits were surrendered into the EU Emissions Trading Scheme (ETS), with an estimated expenditure of €5.9bn.
• The use of offsets in the EU ETS is contributing to a low carbon price and diverting necessary investment away from Europe, which may hinder domestic emission reductions.
• Clean Development Mechanism (CDM) projects involving coal-fired power plants in India and China are described as 'business-as-usual' that lock in CO2 emissions and cause ecosystem and health damage.
• Large hydro projects in the CDM are criticized for failing to reduce emissions because they would likely have been built without CDM support, and they are noted for potential negative social and environmental impacts.
• Track 1 Joint Implementation (JI) is criticized for lacking transparency and accountability, with 107 million ERUs issued compared to 13 million under Track 2, potentially enabling 'hot-air laundering' by countries with large AAU surpluses.

APA

Carbon Market Watch (2012). OPEN LETTER regarding the use of offsets in the EU ETS. https://carbonmarketwatch.org/wp-content/uploads/2012/09/Open_Letter_quality_criteria_CDM-JI_SE_Anna-Karin_HATT.pdf

Chicago

Carbon Market Watch. OPEN LETTER regarding the use of offsets in the EU ETS. 2012. https://carbonmarketwatch.org/wp-content/uploads/2012/09/Open_Letter_quality_criteria_CDM-JI_SE_Anna-Karin_HATT.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=OPEN LETTER regarding the use of offsets in the EU ETS |date=15 May 2012 |url=https://carbonmarketwatch.org/wp-content/uploads/2012/09/Open_Letter_quality_criteria_CDM-JI_SE_Anna-Karin_HATT.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2012open, author = {{Carbon Market Watch}}, title = {{OPEN LETTER regarding the use of offsets in the EU ETS}}, publisher = {Carbon Market Watch}, year = {2012}, month = may, url = {https://carbonmarketwatch.org/wp-content/uploads/2012/09/Open_Letter_quality_criteria_CDM-JI_SE_Anna-Karin_HATT.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }