Causal Carbon: Baselines and Additionality with Potential Outcomes
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Recent work has questioned the credibility of forest carbon offsets as a climate solution. This threatens both investor confidence and genuine climate mitigation efforts in the voluntary carbon market, which has contracted by over 75% since 2021. Despite updated methodologies and widespread advice to invest only in high-integrity or high-quality credits, it remains unclear which credits genuinely meet these criteria. Here, we draw on the fields of statistics and causal inference to develop a generalized analytical framework for evaluating the additionality of credits generated by carbon offset protocols, addressing persistent ambiguities and limitations in current approaches. This framework comes from a systematic evaluation of all existing forest carbon offset protocols. We translated each protocol’s baseline methodology into a statistical causal estimator and derived the assumptions necessary for it to produce accurate estimates of generated credits. By translating those assumptions back into the language of forest carbon credits we provide a set of conditions that buyers should believe in order to conclude that the credits they purchase are additional. We demonstrate that strategic enrollment, combined with even minor measurement errors in carbon stocks, can lead to significant market distortions, undermining both environmental integrity and financial reliability of offsets. Our analysis highlights an inherent tradeoff between ensuring accurate carbon measurement and expanding participation in offset programs. This framework clarifies the assumptions purchasers of carbon offsets must accept for credits under each protocol to reliably represent genuine climate impacts, providing a transparent basis for buyers, sellers, critics, and advocates to constructively engage and reconcile divergent views.
Recommended citation: Ayers, M., Sanford, L., Gardner, W., & Kuebbing, S. (2026, May 4). Causal Carbon: Baselines and Additionality with Potential Outcomes. https://doi.org/10.31219/osf.io/5pcuh_v3
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