Investors unimpressed by carbon offsets
Asset managers and institutional investors are looking past largely unregulated means of reducing emissions to companies implementing science-based targets
Investors are increasingly viewing the way non-energy companies are using carbon offsets to voluntarily decarbonise, often to hit net-zero targets, with a high degree of scepticism. A key issue is that carbon offsets are largely unregulated whereas the cap-and-trade schemes, such as the EU ETS, used by energy companies, utilities and related businesses are highly regulated. Eoin Fahy, chief economist and head of responsible Investing at KBI Global Investors, highlights this point, arguing that cap-and-trade schemes such as the EU ETS are “well regarded” by investors, “although in truth, from a theoretical economics point of view, a carbon tax would be preferable, while often politically much

Also in this section
14 August 2025
Innovation is moving at pace in the direct air capture sector, but will costs fall quickly enough to make it a mainstay of the voluntary carbon market?
11 August 2025
US company reiterates commitment to CCUS as it agrees to work with major steelmakers to drive large-scale deployment in Asia
7 August 2025
Draft law opens door to large-scale carbon capture and storage, and could unleash investment in gas-based hydrogen projects
6 August 2025
EU industry and politicians are pushing back against the bloc’s green agenda. Meanwhile, Brussels’ transatlantic trade deal with Washington could consolidate US energy dominance