Markey Probe into Carbon Offsets Nets FTC Actions

(Washington, DC) - In response to Representative Edward J. Markey’s (D-Mass.) recent inquiry into the nascent carbon offsets market, the Federal Trade Commission (FTC), has written to Rep. Markey to inform him of its plan to begin a process to seek more information on the largely unregulated voluntary carbon offset market. In a letter sent late Friday in response to a request from Rep. Markey on the topic, the FTC agreed with Rep. Markey that the carbon offset market poses consumer protection challenges and set forth a plan to explore the market and produce new possible regulations.

“I applaud the FTC for taking a closer look at these climate consumer products,” said Rep. Markey, who is Chairman of the Select Committee on Energy Independence and Global Warming. “Carbon offsets can play an important role in the efforts to cut global warming pollution, but they need to be held to the same standards as other consumer products to ensure they are effective.”

Rep. Markey sent the original letter to FTC Chairman Deborah Platt Majoras on July 18th after holding a hearing that day before the Select Committee on the viability of the carbon offset market. Rep. Markey’s letter asked the FTC to undertake a public process to update the commission’s guides on environmental marketing claims to include carbon offsets. The current guidelines define terms like “recycled” and “recyclable” to ensure products are properly representing their environmental benefits, but currently do not include similar guidelines for carbon offsets.

In the response from the FTC, the agency says it will begin this public process in the upcoming months, holding a series of workshops to “seek input on the consumer protection issues raised by carbon offset sales and the need for more direct FTC guidance than already provided.” 

Carbon offsets are credits that consumers, businesses and government agencies can buy to compensate for the global warming emissions caused by driving, using electricity, or other activities. When properly structured, the money is then used to fund clean energy development projects, tree plantings, or other activities that “offset” a certain amount of heat-trapping pollution.

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