F.T.C. inquires about offsets

The nascent carbon offset industry in the United States is more popular than some might think.  Last year, corporations and individuals purchased more than $54 million in carbon offsets.  Popular, maybe.  Organic pet food is a $50 million industry.  Irrespective of their appeal, offsets represent an intrinsically different assignment of value, perhaps not seen since the war bonds of the 1940s.

For such a noble surrender of money, consumers would certainly hope that their dollars and cents produced the intended effect, in this case, keeping carbon dioxide out of the atmosphere.  Who ensures that offset vendors are doing what they promise?

Wednesday, The New York Times reported on the first hearings on the world of carbon offsets by the Federal Trade Commission (FTC).  The article is brief, but mentions efforts previously unbeknownst to me by companies such as Delta, Volkswagen, Dell, and Bank of America.  I've always wondered about federal oversight of offsets and recently questioned their efficacy when I decided to postpone whether or not to purchase offsets for 2008.

The FTC is responsible for regulating advertising claims, protecting consumers by providing accountability.  On January 8th, the agency hosted "eco in the market," a conference intended to start the ball rolling on revising environmental advertising standards and recommendations.  You can view a series of webcasts archived after the event at the conference website.

The article lacks depth, but it seems that even the FTC isn't sure what to make of offsets.  With so many individuals and even corporations jumping on board, it appears appropriate that the government is analyzing the burgeoning industry for best practices and signs of fraud.

Have an opinion or concern about carbon offsets? You can submit comments to the FTC yourself, simply by visiting their website.