A recent analysis by Corporate Accountability highlights flaws in carbon offset projects used by major corporations like Delta, Gucci, ExxonMobil, and Disney, questioning the effectiveness of these initiatives in reducing emissions. Issues such as exaggerated emissions reductions and non-permanence were identified, with a significant portion of corporate offsets portfolios potentially deemed worthless in achieving emission reduction goals.
A recent analysis has raised concerns about the effectiveness of carbon offset projects used by major corporations such as Delta, Gucci, ExxonMobil, and Disney. Conducted by Corporate Accountability, the study argues that many of these offsets are fundamentally flawed and likely ineffective, labeling them as “probably junk.”
The top 50 carbon offset projects, which have sold the most credits globally, were found to frequently exaggerate emissions reductions or shift emissions elsewhere. Issues identified include non-permanence, inflated baseline figures, and projects that would have occurred regardless of the carbon markets. The analysis indicates that for 33 of the top 50 corporate buyers, over a third of their entire offsets portfolio may be worthless in achieving emission reduction goals.
The fossil fuel industry, airlines, automotive industry, and other sectors heavily invest in these offset schemes as part of broader carbon-neutral claims. For example, nearly half of ExxonMobil’s 3.7 million carbon credits are from projects deemed likely to be ineffective. Delta Air Lines has acquired over 41 million offsets, with over 35% potentially worthless according to the study. Similarly, easyJet, Volkswagen, and Nestlé have significant investments in projects classified as likely junk.
The voluntary carbon market (VCM), valued between $2 and $3 billion, continues to be criticized for its inability to guarantee real-world emission reductions, potentially delaying the necessary transition away from fossil fuels. Despite new guidelines from the Biden administration on responsible participation in VCMs, experts argue that the system is inherently flawed and cannot replace direct efforts to cut carbon emissions.