How much greenhouse gas mitigation can be expected from an international offsets program?
Figure provided courtesy of Brian Murray. Given the scale of international uncapped greenhouse gas emissions (energy, manufacturing, transportation, deforestation) and sequestration potential (forest and agricultural management), it is not surprising that the potential pool of international offsets is substantially larger than of those generated within the U.S. However, proposed climate policies cap the use of offsets by domestic firms, which means the full potential of international offsets will not be exhausted. The availability of offsets will depend on the policies and regulations that are developed. If the policies are more constraining, or if transaction costs are higher than expected, the supply of offsets could be lower than depicted above.
