The revised oxford principles for net zero aligned carbon offsetting

Abstract:

Market mechanisms have long been recognised as tools for climate change mitigation. However, since their introduction carbon offsetting (baseline-and-credit) schemes have suffered from a number of integrity challenges, in both compliance (Calel et al 2021) and voluntary settings (Fuss et al 2024). The growth in pledges to meet net zero emissions (Net Zero Tracker 2024) has prompted fresh calls to revise the integrity of both the supply and demand sides of these carbon markets (Fuss et al 2024). These general considerations, and the particular challenge of offsetting given the need to sharply reduce emissions to stabilise temperatures, inspired the release of the original Oxford Principles for Net Zero Aligned Carbon Offsetting (ONZOPs) in September 2020, and a revised version in February 2024 (Axelsson et al 2024). The revised ONZOPs outline how organisations can credibly deploy an offsetting strategy in line with the science of net zero, which requires all residual emissions (i.e. those that cannot be feasibly reduced) to be durably counterbalanced. More specifically, the four principles set out the need to: (1) cut emissions, ensure the environmental integrity of credits, and regularly revise offsetting strategies as best practice evolves; (2) begin a transition now to carbon removals in the portfolio to cover all residual emissions by the global net zero target date; (3) shift to removals with durable storage (low risk of reversal) to compensate these residual emissions by the global net zero target date; and (4) support the development of innovative and integrated approaches to achieving net zero (Axelsson et al 2024).