Mark Carney: Offset market is not functioning—CeraWeek

Former BoE governor says ‘tiny’ offset market could play more influential role

Reform of the carbon offset market is required to accelerate the energy transition, UN special envoy for climate action & finance Mark Carney said on a panel discussion at CeraWeek yesterday. The former Bank of England governor asserted that the carbon offset market was too small and improperly managed to have a noticeable impact. In particular, he criticised the inconsistency in the way carbon offset credits were used to incentivise companies. “This market is estimated to be something like $350mn a year, so it is tiny,” said Carney, who is also finance adviser to UK prime minister Boris Johnson for Cop26. “It is fragmented. Sometimes it will cost 10¢/t, other times $70/t. And there is a