(The following press release from the Office of the Auditor General of 
British Columbia, Canada, was received by e-mail and was reformatted. The 
sender verified the statement.) 
For release: March 27, 2013 
Office of the Auditor General of British Columbia 
Auditor General finds lack of credibility in carbon offset purchases 
VICTORIA - According to Auditor General John Doyle's latest report,
entitled An Audit of Carbon Neutral Government, the majority of
offsets purchased to meet government's carbon neutral goal in 2010
were not credible. The audit examined two projects which accounted
for nearly 70 per cent of the offsets purchased by government to
achieve their claim of carbon neutrality: the Darkwoods Forest
Carbon project in southeastern B.C. and the Encana Underbalanced
Drilling project near Fort Nelson. 
"Offsets can only be credible in British Columbia if, among other
things, the revenue from their sale is the tipping point in moving
forward on a project. It must be an incentive, not a subsidy, for
the reduction of GHGs," said Doyle. "However, neither project was
able to demonstrate that the sale of offsets was needed for the
project to be implemented." 
Encana's project was projected to be more financially beneficial to
the company than its previous practices, regardless of offset
revenue, while the Darkwoods property was acquired without offsets
being a critical factor in the decision. 
"In industry terms, these projects would be known as 'free riders',"
said Doyle. "Together, they received $6 million in revenue for
something that would have happened anyway." 
Doyle also commented on the unprecedented level of interference by
an audited organization and industry in the audit. 
"Of all the reports I have issued, never has one been targeted in
such an overt manner by vested interests," he stated. "Nor has an
audited organization ever broken my confidence as did the senior
managers at the Pacific Carbon Trust by disclosing confidential
information to carbon market developers and brokers." 
"I was astonished to have to expend my office's limited resources
responding to an orchestrated campaign of delay and interference,
led by a public-sector entity on behalf of market interests." 
About the Office of the Auditor General of B.C.:
The Auditor General is a non-partisan, independent Officer of the
Legislature who reports directly to the Legislative Assembly. The
Auditor General Act empowers the Auditor General and his staff
(known as the Office of the Auditor General or the OAG) to conduct
audits, report findings and make recommendations. 
2012-13 Report 14 - An Audit of Carbon Neutral Government 
For more information, please contact:
Office of the Auditor General
250 419-6100 
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