Exploring unregulated climate offsetting as a means for private consumers to mitigate climate change : An analysis of 15 offset claims within the food and aviation sectors

Abstract: Climate change has been described as “the greatest and widest-ranging market failure ever seen”. Unregulated climate offsetting has emerged as a way for consumers to internalize the externality of climate change. Previous research abounds regarding the challenges facing the technical performance of climate offsetting, but this research has not taken into account how the interpretation of consumers will affect the ability of offsetting to mitigate climate change. Therefore, in this report, a conceptual framework illustrating possible challenges was constructed based on the technical performance of offsetting as well as marketing laws and guidelines, while adding an explicit use of system boundaries. Making use of manifest content analysis, the framework was then empirically tested through analyzing offset claims from the aviation and food retail sectors. Large risks of consumer misinterpretations of offset claims were found within all investigated system boundaries and for both sectors. As such, it seems that unregulated climate offsetting has inherited the well-known problems related to regulated climate offsetting while failing to address the general issues of environmental marketing. Until and unless these issues are addressed, unregulated climate offsetting should be used with caution as a way to mitigate climate change.