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This article examines the governance of international carbon offsets, analyzing the political economy of the origins and governance of offsets. We examine how the governance structures of the Kyoto Protocol's Clean Development Mechanism and unregulated voluntary carbon offsets differ in regulation and in complexity of the chain that links consumers and reducers of carbon, with specific consequences for carbon reductions, development, and the ability to provide "accumulation by decarbonization." We show how carbon offsets represent capital-accumulation strategies that devolve governance over the atmosphere to supranational and nonstate actors and to the market. [ABSTRACT FROM AUTHOR]

The technological, economic and policy dimensions of climate change are essential to understanding and formulating corporate strategic responses. Over the past decade, advances in greenhouse gas mitigation technologies, the refinement of economic models and their underlying assumptions, and the emergence of emissions trading and other market-based policy instruments have improved understanding of the potential of innovative technologies and policies to limit the costs of reducing emissions. These developments, accompanied by growing scientific evidence of climate risks and vulnerabilities and building political momentum toward binding emissions requirements, have prompted an increase in and diversification of corporate responses. This paper provides an overview of emerging business strategies to address climate change, focusing on engagement with international negotiations and the design and implementation of Kyoto mechanisms. Responses are differentiated by sector and region, revealing evidence of divergence, prospects for convergence and the importance of leadership. [ABSTRACT FROM AUTHOR]

As a key element in its climate change strategy, the UK government launched a greenhouse gas emissions trading scheme in April 2002. The UK ETS is the first-ever national, industry-wide carbon trading scheme in the world and will eventually form part of the global carbon market which is expected to be established under the Kyoto Protocol. This paper assesses the effectiveness of the scheme both in facilitating emission reductions and also as driver towards moving from a fossil-fuel-based economy towards a low-carbon economy. By looking at early developments in the UK ETS and examining the emission profiles of FTSE 100 companies, the paper reveals some serious weaknesses and highlights that the environmental credibility of the market is hampered by low standards of emissions monitoring and reporting. The authors argue that a fundamental review of the UK scheme is required, to improve its environmental credibility and to bring it in line with the planned EU-wide scheme. [ABSTRACT FROM AUTHOR]