Carbon Credits: Limited Federal Role in Voluntary Carbon Markets

The GAO examined the voluntary carbon market, where organizations buy credits to offset emissions, but found ongoing concerns about integrity and transparency. Studies show many credits may not represent real or lasting emissions reductions, raising doubts about their effectiveness. While federal agencies like CFTC, FTC, USDA, and DOE have taken limited steps to provide oversight and guidance, there is no unified regulatory framework. Experts remain divided on whether more federal involvement would strengthen market integrity or stifle innovation.