Carbon Offsets Endorsed by Key Oversight Body Questioned by NGO

Some carbon offsets that received a stamp of approval from a key industry body could be environmentally worthless, according to a new study from a watchdog group. The finding raises questions about the efficacy of a long-awaited system meant to improve the quality of credits and help companies avoid greenwashing.

Companies buy carbon offsets as a way of funding sustainability initiatives to try and make up for their own pollution. Demand slumped in the $1 billion market after a string of controversies and lawsuits made businesses wary of backlash for supporting projects that don’t deliver on their promised climate impacts. Some investors remain optimistic that standards-setting bodies can restore confidence and spur growth.