Crs Report for Congress - The Role of Offsets in a Greenhouse Gas Emissions Cap-And-Trade Program: Potential Benefits and Concerns September 22, 2008 - Rl34436 (Paperback)

If Congress establishes a greenhouse gas (GHG) emissions reduction program (e.g., cap-and-trade system), the treatment of GHG emission offsets would likely be a critical design element. If allowed as part of an emissions program, offsets could provide cost savings and other benefits. However, offsets have generated concern. An offset is a measurable reduction, avoidance, or sequestration of GHG emissions from a source not covered by an emission reduction program. If allowed -- Table 1 compares offset treatment in proposals from the 110th Congress, including S. 2191, S. 1766, and S. 3036 -- offset projects could generate emission credits, which could be used by a regulated entity (e.g., power plant) to comply with its reduction requirement. Offsets could include various activities: