Carbon Offsetting Services and the Net Zero Supply Chain: Mapping Credible Pathways for Hard-to-Abate Sectors
The hard-to-abate sectors experienced a reduction of 0.9% in their absolute emissions from 2022 to 2023, while global energy-related emissions increased by 1.3% [1]. While this reflects progress, the pace of emissions reduction remains insufficient relative to net-zero targets. It will cost approximately USD 30 trillion to decarbonise these sectors before 2050 [1]. Carbon offsets are not a substitute for emissions reduction. Their role is to address residual emissions that cannot yet be eliminated through available technologies while organisations continue progressing towards net zero. However, their use must be highly selective and credible. A 2024 meta-study published in Nature Communications by the Max Planck Institute, covering 2,346 projects and approximately one billion tonnes of issued credits, found that less than 16% of the credits studied represented genuine emissions reductions [2]. While the study covered specific project types (cookstoves, avoided deforestation...