International Offsets and U.S. Climate Legislation

There are strong drivers supporting the integration of international offsets into U.S. climate legislation, including the dramatic cost savings they promise, and their role in promoting action by other countries.  What remains uncertain (beyond the timing of U.S. legislation) are the conditions under which international offsets will be utilized, and any quantitative limits on use.  An international offsets program constrained by impossible-to-meet criteria or with mechanics that generate high levels of market uncertainty may not differ significantly from a domestic-only offsets program.  For these reasons, there is work left to be done to further educate policy makers about the benefits of international offsets and the necessary elements of a functional international offsets program. 

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Reprinted with the permission of the International Emissions Trading Association as published in the IETA 2010 Greenhouse Gas Market Report.