ESG & Investing

Carbon Offset Gatekeepers Are Failing to Stop Junk Credits

New research finds the leading standard-setters are systematically over-crediting projects, generating junk carbon offsets that some companies use to make green claims. 

Pigeon River Country State Forest in Vanderbilt, Michigan.

Photographer: Erin Kirkland/Bloomberg
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A study covering almost 300 carbon offset projects found that the industry’s top registries have consistently allowed developers to claim far more climate-saving benefits than justified.

Researchers led by Barbara Haya from the University of Berkeley’s Goldman School of Public Policy assessed the methods underpinning forestry projects responsible for 11% of all carbon offsets ever issued. They found shortcomings in each that resulted in bogus credits.