The Department of Energy and Climate Change (DECC) is conducting a market sounding on its plans for the second phase of the UK Government's Carbon Offsetting Fund (GCOF II).
Joan Ruddock, Minister of State at DECC, said: 

"High Quality Offsets mean real carbon reductions but also sustainable opportunities for developing countries. We all need to reduce and avoid carbon emissions as far as possible. But carbon offsetting has a legitimate role in helping to address the climate change impact of unavoidable emissions. Reflecting the impact that Government air travel can have, I am pleased that Departments will continue to purchase high quality carbon offsets where such travel cannot be avoided." 

DECC is seeking views on its plans for the successor contract (GCOF II). This will cover emissions from the period 1 April 2009 until 31 March 2012. Reflecting developments in the market since the first phase of GCOF, DECC now wishes to purchase credits that meet the Clean Development Mechanism Gold Standard or offer equivalent benefits.

Gold standard credits are not only Certified Emission Reduction credits generated by projects under the Kyoto Protocol's Clean Development Mechanism (CDM), but also provide additional sustainable development benefits. For example, both the Sri Balaji 6MW Non-Conventional Renewable Sources Biomass Power Project in India and the Gansu Zhouqu Shimenping 15MW Hydropower Station project in China have not only reduced carbon emissions, but also provided new job opportunities to the local communities.

The new contract will be flexible enough to facilitate any additional commitments to offset unavoidable emissions made by Government Departments and others in the public sector.