This White Paper identifies the causes of the sickness afflicting world offsetting markets – vast over-supply in relation to demand and, consequently, depressed prices – and asks whether there are any reasons to hope for a recovery.

The world of carbon markets has been defined by the offset – the ability to use emission reductions from outside the capped regime. It is the offset that distinguishes emissions trading from a carbon tax. Without offsets, the economics of both would be similar. The question remains, with challenging prospects for the world’s offsetting markets, can the patient be cured?