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A Carbon Scam? BP-Owned and US Largest Offset Company’s Credits Are 80% Dubious

Some forest carbon offsets sold by Finite Carbon, the largest offsetting company in the US, offer minimal climate benefit, according to a satellite analysis by Renoster and CarbonPlan.

Finite Carbon, founded in 2009 and acquired by BP in 2020, manages over 60 projects covering 1.6 million hectares. These offset projects generate a quarter of the US’s carbon credits. 

Finite’s business model involves encouraging landowners to protect forests that are supposedly at risk of being cut down. The carbon absorbed by these protected trees generates credits, which polluters can purchase to offset their emissions. 

Since 2009, Finite claims to have offset over 70 million tonnes of emissions—more than double BP’s total emissions last year.

However, the credibility of Finite’s projects is under scrutiny amid rising concerns about the global carbon offset industry, which Barclays predicts could be worth $1.5 trillion by 2050. 

An analysis of three projects, representing nearly half of Finite Carbon’s credits valued at $334 million, revealed significant issues. Their findings were alarming: about 80% of the credits should not have been issued.

Finite’s Carbon Offsets Under the Microscope

The scrutiny of Finite Carbon’s offsets coincides with growing concerns about the carbon offset industry. US Treasury Secretary Janet Yellen recently emphasized the need to address the industry’s significant challenges.

Finite Carbon defended its offsets, stating that all projects are independently verified and developed according to California’s cap-and-trade program standards. 

The offsets developer sells most of its credits under California’s cap-and-trade system, which requires excessive polluters to buy offsets. Critics argue that flawed credits allow companies to continue polluting with impunity.

Finite’s offsetting process involves calculating a baseline of how many trees would be cut down without the project. 

Renoster, an agency used by carbon credit buyers to verify real climate benefits, found significant issues in Finite’s offset projects. 

One project in the Alaska Panhandle included trees not at risk of being cut down, resulting in about 79% of the credits being deemed invalid by Renoster.

Finite’s Sealaska project, covering 67,000 hectares, generated credits valued at over $100 million. The rating agency found that trees in the project area were unlikely to be cut down due to extensive prior logging, making the credits unjustifiable. They were in locations inaccessible to loggers, such as ravines and coastlines.

Finite’s approach of excluding logged areas and creating maps around small pockets of forest, sometimes fewer than 50 trees, may comply with technical rules but undermines the spirit of the regulations. 

Gerrymandering Credits: The Integrity Crisis in Carbon Offsetting

Thus, Renoster concluded that the project’s credits should not have been issued, labeling the practice as “cheating,” accusing them of intentionally manipulating project boundaries to maximize credits. Elias Ayrey, Renoster’s head scientist, criticized this “gerrymandering,” which makes assessing real conservation efforts impossible.

Sealaska representatives defended the credits, claiming the remaining trees had economic value and could legally be cut. Brian Kleinhenz, a former Sealaska executive, argued that there was always market value for the trees, even in difficult-to-access areas. 

The California Air Resources Board (CARB) supported the inclusion of these trees in baseline calculations. CARB spokesman Dave Clegern acknowledged concerns but maintained that projects are in compliance with all regulations.

Another Finite project analyzed is a 200,000-hectare forest in Washington state, owned by the Confederated Tribes of the Colville Reservation. It significantly overestimated the logging threat, according to CarbonPlan scientist Grayson Badgley. He noted that awarding credits for avoiding unlikely logging activities undermines the integrity of offsets.

Finite Carbon carbon offset baseline vs tribe management plan
Chart from SourceMaterial website Note: Finite Carbon timber harvest projection vs the tribe’s submitted management plan

The third project in West Virginia, covering 39,000 hectares and involving Lyme Timber, which promised to preserve trees in exchange for credits, was also found to be over-credited. Renoster concluded that many trees were in steep, inaccessible areas, making logging economically unfeasible. 

Lyme Timber president David Hoffer contested Renoster’s findings, asserting that their harvesting practices have been conservative.

A Path Forward for the Carbon Offset Industry

Finite Carbon’s controversial offset projects highlight the complexities and challenges within the carbon offset industry. The scrutiny underscores the urgent need for increased transparency and accountability in the carbon offset market. 

Amid all this turmoil, the moment represents a pivotal opportunity for the industry to evolve and enhance its credibility.

By implementing more rigorous verification processes, embracing advanced monitoring technologies like satellite analysis, and fostering collaboration among stakeholders, the carbon offset market can refine its practices and restore confidence. Ultimately, these steps will help ensure that carbon credits genuinely contribute to mitigating climate change.

The post A Carbon Scam? BP-Owned and US Largest Offset Company’s Credits Are 80% Dubious appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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