.png)
This report presents MCC Economics's evidence submission to the UK Climate Change Committee (CCC) on the role of carbon offsetting within national decarbonisation pathways. Drawing on our experience in regulatory economics and market design, the report evaluates the effectiveness, credibility, and governance of offsetting mechanisms in supporting net zero delivery. It considers both voluntary and compliance markets, highlighting the risks of overreliance on offsets and proposing frameworks to ensure integrity, transparency, and additionality in emission reduction claims.
The Climate Change Committee launched a call for evidence to assess the contribution of carbon offsetting to the UK’s net zero strategy. MCC Economics’ submission responds with a critical economic assessment of current offsetting practices, identifying where market and policy interventions can improve outcomes. The report outlines key challenges in monitoring, verification, and permanence of offsets; economic incentives that drive offset demand and supply; principles for integrating offsetting within credible transition plans; and recommendations for regulatory consistency, data disclosure, and international coordination. Our evidence supports a balanced approach that recognises offsetting’s potential while reinforcing the primacy of direct emission reductions.
This paper has been published on following other platforms
I was delighted that MCC's work was completed on time, and within budget, helping us deliver important changes and improvements, to the benefit of our stakeholders. MCC's report is published on the CCC website.
I am delighted to recommend MCC Economics. Specifically, I worked closely with PJ, who helped us with our Nuclear and CCUS projects. PJ helped us develop new policies and answer questions from our stakeholders. His support helped us deliver important changes and improvements, to the benefit of our stakeholders.
MCC Economics has helped us better understand the most important issues for our stakeholders, including: charges, shareholder returns, debt payments and inflation impacts.
I am delighted to recommend PJ and his team at MCC Economics. We've been working together on National Policy Statements to help meet net zero targets for 2030 and 2050. We initially appointed MCC Economics to support us on offshore wind consultation analysis and have recently reappointed MCC Economics to undertake a larger consultation analysis role across all sectors, including hydrogen, CCUS and networks. I can confirm that PJ and his team have shown excellent spreadsheet skills, alongside very good project management, planning and analysis skills, helping us deliver important changes, and continuous improvements, to the benefit of our stakeholders.
I am delighted to recommend PJ and his team from MCC Economics. They helped us with our price controls for Heathrow airport and for NATS (En Route) plc (the air traffic services provider). Specifically, the MCC team helped us deliver important changes and improvements to our financial models and supporting policy documents, to the benefit of our stakeholders.
I am delighted to confirm that I worked with PJ on a retail project in 2015. The project helped stakeholders understand electricity costs and charges. Specifically, the project helped us explain to stakeholders, internally and externally, why electricity charges differed across the regions (GB, NI & Ireland). PJ was a key member on the project team, which helped deliver changes and improvements in the understanding of energy retail.
Harness the power of informed decisions and shape tomorrow's success.
© All rights reserved – MCC Economics 2024.