10 February, 2023

Why offsets are not a viable alternative to cutting emissions

Authors

Ryan Wilson, Bill Hare, Neil Grant, Thomas Houlie

The steady increase in corporate and national net zero targets in recent years raises critically important questions as to what role, if any, offsets should play in achieving them, and indeed 2030 targets, and to what extent they are legitimate substitutes for direct emission reductions at source.

As we move further into the critical decade for climate action, and ever closer to 2050, the year that many countries and companies have set as their net zero emissions target, policymakers need to confront the fundamental shortcomings of offsets in achieving real emission reductions – notably from fossil fuel sources.

In this report we set out an assessment of the state of the global science around offsets, and, in light of that, examine the impact of the Australian Government’s proposed changes for the country’s industrial emitters.

Publications

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Climate Action Tracker: 2024 warming projection update

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Decarbonising light-duty vehicle road transport

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Emissions Gap Report 2024: No more hot air … please!

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The role of northern forests in limiting warming to 1.5°C

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Methodology underpinning the State of Climate Action series: 2024 update

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Calculating the loss and damage finance gap: a scoping and feasibility exercise

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Setting 1.5°C compatible wind and solar targets

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Technical guide for the development of long-term low emission development strategies in Africa

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With climate extremes hitting nations across the globe, disproportionately burdening vulnerable developing countries, funding for loss and damage is an acute need. Attribution science can provide useful information for decision makers.

Evaluating the near and long-term role of carbon dioxide removal in meeting global climate objectives

For 1.5°C pathways with limited overshoot, most of the mitigation between now and 2030 should come from emissions reductions (70%), with reductions from cutting non-CO2 emissions (20%) and land-based carbon dioxide removals such as afforestation and preventing deforestation (10%) making up the remainder.

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