The report analyzes, by looking back at existing compliance systems in the EU, Alberta, Australia, Colombia and Japan, the conditions under which offsets can add value to the compliance system without undermining its environmental integrity. The compliance system’s climate ambition as well as the efficiency of the institutions, processes and infrastructure that are used for the generation and crediting of offsets are seen as essential conditions for offsets to uphold environmental integrity and add value to a compliance system, to climate action and to sustainable development.