The voluntary market allowing companies to offset their contributions to climate change will grow ten-fold by 2012, though poor oversight could impair supply, according to a new report by consultancy ICF International Inc. |
Demand among companies looking to offset their greenhouse-gas emissions blamed for global warming will grow to 220 million tonnes of carbon dioxide by 2012, up from 20 million tonnes now, the report from Fairfax, Virginia-based ICF International said today in its 2008 outlook of the voluntary carbon market. |
As companies such as Dell Inc and Volkswagen AG advertise buying carbon credits to offset emissions that result from making their products, the market has come under more scrutiny. |
The US Federal Trade Commission said last month that the unregulated market makes it hard to verify the validity of the projects that result in the credits. |
"The soaring demand for them has resulted in highly fragmented product supply and pricing, with complex, unregulated, and non-transparent markets creating additional risks and uncertainties," ICF International said in a statement. |
As much as $300 million may be spent by companies this year to offset their greenhouse-gas emissions in the unregulated markets. |
Alexandra Marty, manager of ICF's climate change activities in London, said in a statement that voluntary markets will be successful with a set of standards overseen by independent groups "free from conflict of interest". |
The FTC is reviewing a set of marketing guidelines that would attempt to ensure the claims by companies about their environmental purchases are accurate. |
The International Emissions Trading Association, The Climate Group and The World Business Council for Sustainable Development released a new standard last year that creates methods to count carbon credits and sets up a tracking registry. |