California carbon offset program under scrutiny

By Anne C. Mulkern | 02/07/2025 06:09 AM EST

An expert panel is questioning the use of offsets to meet emissions standards. One option: end the program.

Oil refineries in California pay to emit carbon dioxide under the state's cap-and-trade program.

Oil refineries in California pay to emit carbon dioxide under the state's cap-and-trade program. A panel that advises the program said the state might consider changes to cap and trade. Rich Pedroncelli/AP

An advisory committee to one of the largest state climate programs is questioning whether the program should stop letting polluters offset part of their own emissions to meet state regulations.

California’s cap-and-trade program allows regulated companies to meet state emissions limits in part by funding emissions-reducing projects such as forest conservation and methane capture.

Citing studies that question whether some of the funded projects actually mitigate climate change, California’s Independent Emissions Market Advisory Committee said in a recent report that suggests the state could consider ending the offset program.

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“The evidence is substantially stronger now than in the past, with multiple independent peer-reviewed studies reaching similarly stark conclusions,” committee member Danny Cullenward said in a text message.

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