Offsetting in Other Systems
Mandatory Programs
In addition to cap and trade systems, there are other mandatory systems that establish greenhouse gas (GHG) emission reductions targets for regulated entities. Unlike the cap and trade systems, these do not provide for emission allowances to be traded among regulated sources, but they do allow offsets to serve as a compliance mechanism to meet emission reduction requirements.
Below are links to more detailed descriptions of the offset features of two mandatory systems:
Alberta-based Offset Credit System
State Power Plant Rules in Oregon, Washington and Massachusetts
Voluntary Programs
Voluntary greenhouse gas (GHG) reduction programs enlist entities to voluntarily reduce emissions through internal actions or through the purchase of offsets or allowances. While neither strictly an offset program nor a cap and trade system, they do provide a framework for the development of offset markets and methodologies.
Below are links to more detailed descriptions of the offset features of two voluntary GHG reduction programs:
US Environmental Protection Agency’s (EPA) Climate Leaders Program