PCAP - Presidential Climate Action Project

Good candidate to implement by executive order.If it hasn’t done so by Inauguration, direct the Federal Trade Commission to work withthe carbon offset industry to create voluntary standards and an approved third-partycertification process for greenhouse gas offset programs. Base the standards on EPA’scriteria for crediting air pollution mitigation measure under the Clean Air Act(quantifiable, permanent, new, etc.). B-28. Create standards for greenhouse gas offset programs.In the fall of 2007, the Federal Trade Commission agreed to review consumer protection issuesin the emerging greenhouse gas offset industry. The President should direct the Administrationto work with the industry to develop universal voluntary standards and an approved third-partycertification process for greenhouse gas offset programs. The standards, which could be basedon EPA’s criteria for crediting air pollution mitigation measures under the Clean Air Act, wouldprotect the integrity of the industry by ensuring that its offset programs produce real greenhousegas reductions, do not double-count reductions, and are well managed and transparent. PCAPReport 2:9.Background. The Federal Trade Commission (FTC) implements the FTC Act including theprovisions that address unfair or deceptive acts or practices. Under these provisions the FTC hasdeveloped a variety of rules and guides related to energy and environmental marketing practices.The Guides for the Use of Environmental Marketing Claims (“Green Guides”) address theapplication of Section 5 of the FTC Act to environmental advertising and marketing practices.The FTC is currently considering revising the Green Guides to address carbon offsets andrenewable energy certificates (RECs) and related advertising claims, and conducted a publicworkshop on January 8, 2008 on this issue. 120 The FTC is considering other amendments to theGreen Guides and to this end conducted a workshop on April 30, 2008 and has announcedanother on July 15, 2008. 121 According to FTC staff, a final decision regarding amendments tothe Green Guides is not expected until the end of 2008. 122Statutes. 123 The FTC implements and enforces Chapter 2 of Title 15 (Commerce and Trade).This includes the FTC Act 124 and specifically the provisions that address unfair or deceptive acts120 72 C.F.R. § 66091, Guides for the Use of Environmental Marketing Claims, Request for Public Comment;Announcement of Public Meetings (Nov. 27, 2007); 72 Fed. Reg. 66094-01, Guides for the Use of EnvironmentalMarketing Claims; Carbon Offsets and Renewable Energy Certificates; Public Workshop (November 27, 2007).121 73 Fed. Reg. 11371-01, Marketing Claims; The Green Guides and Packaging; Public Workshop, (Mar. 3, 2008);73 Fed. Reg. 32662-01, Guides for the Use of Environmental Marketing Claims; Green Building and Textiles;Public Workshop (Jun. 10, 2008).122 Hampton Newsome, Attorney, FTC, coordinator for January Workshop (email and telephone communications,June 2008).123 The information in this section is largely from, 72 Fed. Reg. 66094-01.124 15 U.S.C. §§ 41-58.CEES 29 | P age