Washington (Platts)--17Apr2008

Senior Republicans on US House of Representatives committees charged with
energy policy and industry oversight are seeking an investigation into the
fast-growing international carbon offset market and whether offsets result in
actual greenhouse gas emissions reductions.

Representatives Joe Barton and John Shimkus -- senior Republicans on the
US House Energy and Commerce Committee and the Oversight and Investigations
Subcommittee, respectively -- made the request Thursday to Energy and Commerce
Chairman John Dingell and subcommittee Chairman Bart Stupak, both Michigan
Democrats.

"A key concern is carbon 'offsets' that would have happened anyway are
being sold as additional reductions, undercutting the whole point of the
program," wrote Barton of Texas and Shimkus of Illinois. "If this is the
case, the only additional greening taking place may be in the bank accounts of
the people selling these offsets," they added.

Barton and Stupak cited stories in The Wall Street Journal saying a
UN panel that oversees the estimated multi-billion-dollar carbon offsets
market has been investigating these deals.

"A number of projects have already come into question," the lawmakers
said, adding that a project developer responsible for 10% of the market failed
to deliver on a quarter of its offset credits and that another has filed for
bankruptcy.

The US Federal Trade Commission in January held a public workshop on
carbon offsets and renewable energy certificates in an effort to update its
environmental marketing guidelines, which are called Green Guides.

"Revisions to the green guides may be several months away," FTC spokesman
Frank Dorman said Thursday. "The goal is to provide guidance for businesses
that make claims and to help consumers understand the claims that are made."

--Cathy Cash, cathy_cash@platts.com