CORE Publications
Discounting Offsets: Issues and Options
July 2010, SEI
Working Paper WP-US-1005
Anja Kollmuss, Michael Lazarus, Gordon Smith
This paper describes the different types of discounting, their objectives and their potential impacts on carbon markets. Discount factors can be used to strengthen the environmental integrity of offsets and to give preference to certain projects types or geographic regions. Applying a discount can also, in theory, enable the use of offsets to provide a net environmental benefit. At the same time, discounting could have potentially negative effects on the efficiency of carbon markets and might increase the fraction of non-additional credits. All discounting approaches face the difficulty of having to establish the right discount rate that is politically acceptable, maximizes benefits and minimizes negative effects. While discounting is no silver bullet – its potential pitfalls are significant – it should be considered by policy makers as a mechanism to address specific objectives, in particular to remedy perverse incentives and to maximize the environmental benefit of offset markets.
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Handbook of Carbon Offset Programs Trading Systems, Funds, Protocols and Standards
EarthScan Publication
March 2010
Anja Kollmuss, Michael Lazarus, Carrie Lee, Maurice LeFranc (U.S. EPA)and Clifford Polycarp
This publication provides a systematic and comprehensive review of existing offset programs. It looks are what offsets are, how offset mechanisms function, and the successes and pitfalls they have encountered. Coverage includes offset programs across the full swath of applications including mandatory and voluntary systems, government regulated and private markets, carbon offset funds, and accounting and reporting protocols such as the WBCSD/WRI GHG Protocol and ISO 14064. Learning from the successes and failures of these programs will be essential to crafting effective climate policy.This is an essential reference for all regulators, policy makers, business leaders and NGOs concerned with the design and operation of GHG offset programs world-wide.
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Road-testing of Selected
Offset Protocols and Standards; A Comparison of Offset Protocols:
Landfills, Manure, and Afforestation/Reforestation
June 2009, SEI Working Paper US10-01 (version 1: US09-04)
Michael Lazarus, Carrie Lee, Gordon Smith;
Kimberly Todd, Melissa Weitz,
U.S. EPA
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A Review of Offset Programs: Trading Systems, Funds, Protocols, Standards and Retailers
December 2008
Anja Kollmuss, Michael Lazarus, Carrie Lee, Clifford Polycarp
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Maximizing the Positive: Interactions between Offset Programs and Other Climate-related Policies
March 2008, SEI Working Paper 08-05
Michael Lazarus, Anja Kollmuss, Clifford Polycarp, Carrie Lee, and Sivan Kartha
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Making Sense of the Voluntary Carbon Market: A Comparison of Carbon Offset Standards
March 2008
Anja Kollmuss (SEI), Helge Zink (Tricorona), Clifford Polycarp (SEI)
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Carbon Offsetting & Air Travel Part 1: CO2-Emissions Calculations
May 2008
Anja Kollmuss (SEI),
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Carbon Offsetting & Air Travel Part 2: Non-CO2 Emissions Calculations
June 2009
Anja Kollmuss (SEI), Allison Myers Crimmins
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Related Publications by SEI
“The CDM after Montreal: assessing the dividends for renewables and development”, Renewable Energy for Development, Vol 19
“Market Penetration Metrics: Tools for Additionality Assessment?”, Climate Policy, 5(2), pp.147-165. (2005)
“Baseline Recommendations for Greenhouse Gas Mitigation Projects in the Electric Power Sector”, Energy Policy, 32 (2004) pp. 545-566
"Tradable Credits for Mozart ? ...and for Milli Vanilli, too", Joint Comment to Joint Implementation Quarterly, (2003)
"Practical Baseline Recommendations for Greenhouse Gas Mitigation Projects in the Electric Power Sector." OECD and IEA Information Paper. (2002)
"Standardised Baselines for Small-Scale CDM Activities: A proposal for the CDM programme of the Netherlands", a report to the Ministry of Housing, Spatial Planning and the Environment of the Government of the Netherlands. (2001) ECN report C-01-122. www.ecn.nl/en
"Project Baselines and Boundaries for Project-Based GHG Emissions Reduction Trading", A report to the Canadian Greenhouse Gas Emission Trading Pilot Program. (April 2001)
"Crediting GHG Emissions Reductions from Electricity Projects: International Experience and Practical Options", prepared for USAID/Mexico. (February 2001)
"Key Issues in Benchmark Baselines for the CDM: Aggregation, Stringency, Cohorts, and Updating", for US Environmental Protection Agency, in collaboration with Stratus Consulting, Inc. (June 2000)
"Potential and Cost of Clean Development Mechanism Options in the Energy Sector: Inventory of options in non-Annex I Countries to reduce GHG emissions," on behalf of the Netherlands Development Cooperation (DGIS), in collaboration with ECN and Alternative Energy Development. (December 1999)
"Evaluation of Benchmarking as an Approach for Establishing Clean Development Mechanism Baselines", for US Environmental Protection Agency, in collaboration with Stratus Consulting, Inc. (October 1999)