Using cheap carbon offsets to meet net zero targets could curb companies’ efforts to cut emissions and slow the delivery of climate goals, Britain’s climate change advisers said on Thursday.
Many U.K. listed companies such as Shell have set net zero emission targets, saying they would buy or generate carbon credits to offset residual greenhouse gases.
Offset credits are measurable emission reductions from certified climate action projects such as planting trees or switching to less polluting fuels. This type of emission allowances currently trade in an unregulated, voluntary market with many different standards and approaches.