Washington (Platts)--17May2007

Republicans in the US House of Representative urged congressional
researchers on Thursday to investigate the market for greenhouse gas offsets,
which has come under increased media scrutiny.

     Representatives Tom Davis, Republican-Virginia, and Darrell Issa,
Republican-California, and members of the House Oversight and Government
Reform Committee made the request of the Government Accountability Office.

     "We want to understand the products sold in these markets and make sure
they are doing what they say they are," the lawmakers said. 

     "Offsets are becoming a convenient shortcut for individuals and industry
to become 'carbon-neutral.' Now that we see legislation introduced to direct
the federal government to do the same thing, we need a complete picture."

     In particular, Davis and Issa want the GAO to focus on three aspects of
GHG offsets. They are: the scope of the emissions offset market, including the
purchase of offsets by US government agencies in response to the 2005 Energy
Policy Act; mechanisms to ensure the credibility of the offsets; and how to
improve the quality and use of offsets to lower GHG levels.