ESG & Investing

Carbon Offsets Undercut California’s Climate Progress, Researchers Find

A new study indicates that forest projects in the state’s cap-and-trade system provide little additional benefit for the climate. 

A giant sequoia tree in the Sequoia National Monument north of Kernville, California.

Photographer: David McNew/Getty Images
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Since the passage of its landmark climate regulations 17 years ago, California has been a leader in the fight against global warming. The state reached its 2020 emissions target four years early. It has set a timeline to phase out the sale of gasoline-powered cars, and utilities in the state must get 60% of their electricity from renewable sources by the end of the decade.

But for all of California’s progress, some of it is being undercut by a problem with one of the state’s key climate policies, according to a research paper published Thursday.