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Ask Umbra on buying carbon offsets 11

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Q. Dear Umbra,

I’ve been hearing about carbon offsets for awhile and even have purchased some for my car emissions through Terrapass. But I just got an email from my local power company saying that I can pay to offset my own carbon emissions at the low rate of just $8 per month. Is this a good idea? I hear such conflicting stories about the “greening” of coal power plants. How do I know what they are doing with the money?

Mary B.
Winston-Salem, N.C.

A. Dearest Mary,

businessman vacationIs your power company partying in the tropics thanks to you?If a utility is offering carbon offsets or “green power” to their customers, details are usually available on the utility’s web site. A customer must then wade through the self-congratulatory text on the site and determine whether or not the utility is actually taking Acapulco vacations with their $8 a month.

Don’t put too much emphasis on this being a power company issue, though—carbon offsets are a puzzle no matter how and where you buy them. There are a variety of “certifiers” and ratings for offsets, and some generally accepted ideas about what makes an offset project acceptable, but as of yet no overarching body with one stamp of approval.

Offsets themselves are an interesting and contentious issue, as you may have seen in these pages. (Check out our recent special series on offsets for a taste.) I got a bit harrumphy about offsets this past weekend, as I drove past a car with a boasting bumpersticker. Not that I could throw any stones (though we did have five people in the car, hooray). I ranted for a while, but am now prepared to offer a calm assessment of how we might all view offsets: Purchasing an individual carbon offset from a company, which then supports renewable energy development, is great. It is a wonderful chance to financially support projects that would not otherwise be able to get up and running. It does not erase whatever emissions we are emitting. So driving around in an SUV with a “My emissions are compensated for” kind of bumpersticker is ... is ... is—ooh! I’m getting agitated again. Let’s just say I think it misleads the uninformed.

If we think of our offset purchases as a charitable contribution to renewable energy development, then the question about whether we purchase them gets a little clearer. Without worrying too much about the financial logistics of green power credits (though they are clearly explained here by moi) we can simply ask: Will my money help create new, long-term projects that otherwise would not have happened (also called “additionality”), and are these projects approved and vetted by somebody? There are other questions, too (a good introduction can be found at CORE) but these are the basics. The answer should be yes.

In North Carolina you have an unusual opportunity to support renewable power generation in your very own state. NC GreenPower is your statewide non-profit green power program, supported and created by your state government, power companies, and fellow citizens. Utilities can offer offsets to consumers such as yourself, then pass the fees over to NC GreenPower, which then uses about a quarter of the money for administration and gives the rest as production incentives to renewable power producers. The idea is to slowly build up North Carolina’s renewable energy capacity through what amounts to a small grant system. I found all this out by following the trail from Duke Energy. It all looks legitimate. And if you hate your power company and their coalish ways, you can support NC GreenPower directly.

Locally,
Umbra

 

Yours is to wonder why, hers is to answer (or try). Send your green-living questions to Umbra.

For even more green goodness, you can follow Umbra on Twitter (@AskUmbra).

Umbra Fisk is Grist Research Associate II, Hardcover and Periodicals Unit, floors 2B-4B.

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  1. Hot Penny Stocks Posted 12:42 am
    07 Oct 2009

    Penny stocks are really volatile so it is important to know the details of what the company does.

    Penny Stock Newsletter
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  2. amazingdrx's avatar

    amazingdrx Posted 8:22 am
    07 Oct 2009

    There it is Umbra, the most troubling aspect of offsets. Quietism: I have done my part by buying an offset for my gas consumption, so let the guilt-free guzzling continue.

    It's kind of similar for cap n' trade. Set up a system where we can buy permits to pollute (through our local utility adding it to our power bill), then we can use plausible deniability to justify coal electricty.

    As far as the 8 bucks per month mentioned for the offset, would it be possible to drive a giant SUV 40 miles less per month and have the same GHG-saving effect?

    I think that shifting the 8 dollars from agri-chem food purchases to local organic food buying would do more than buying offsets from some shadowy corporate entity. Should CSAs issue offsets equivalent to share/pound amounts of veggies?

    How much GHG in terms of methane and nitrous oxide is saved per pound/dollar of organic food versus agri-chem food? There's a good question for a future column Umbra.

    Nitrous oxide is around 300 times worse as a GHG than CO2 and methane is around 20 times worse. How much GHG does a pound of agri-chem veggie production emit given these figures? How much GHG in terms of equivalence to the CO2 emitted by gas guzzling does you CSA membership offset?
    1. timhammond Posted 11:20 am
      07 Oct 2009

      I've been thinking about this for a long time. Anybody know of anybody doing anything with this idea?
  3. Ian Hanington Posted 9:51 am
    07 Oct 2009

    In Canada, the David Suzuki Foundation has published a guide, Purchasing Carbon Offsets: A Guide for Canadian Consumers, Businesses, and Organizations. You can find it here, along with some information on assessing carbon offsets that is useful no matter where you live:
    http://www.davidsuzuki.org/Publications/offset_vendors.asp

    Ian Hanington
    Communications & Editorial Specialist
    The David Suzuki Foundation
    Vancouver, BC, Canada
  4. Jonathan MyEex Posted 12:30 pm
    07 Oct 2009

    With the recent advent of Personal Carbon Credits, an alternative to large-scale GHG reduction programs is to essentially become your own offset program. I recently joined the team at My Emissions Exchange, a website that certifies your home energy reductions as carbon credits and sells them on your behalf, giving you the profits. Users enter their past utility data to establish a baseline of energy use, and future reductions in energy use are traded as credits on the voluntary carbon market. It's free and there are no penalties if you don't reduce.

    The idea is great for a few key reasons:

    First, it provides an opportunity for folks who were already doing their part to reduce their power consumption a chance to get paid for it.

    Second, it provides a financial incentive (what kind is more powerful?) to those who would have otherwise never given a thought or care being conscientious citizens of the planet.

    Finally, the program is unique because it encourages sustainable behaviors and environmental awareness. Retail offset projects are important, but writing checks to plant trees cannot fix our environmental issues, especially if we do not change the behaviors that are the underlying cause of our climate problems. Like Umbra says, purchasing an offset does not erase our emissions. It's great to support these practices, but as AMAZINGDRX points out, this is sometimes accompanied by an attitude akin to, "I have done my part by buying an offset for my gas consumption, so let the guilt-free guzzling continue."

    For anyone who needs a bit more incentive, we are holding drawings every Monday through November 23 to pay the monthly electric bill of our chosen users.

    http://www.MyEmissionsExchange.com
  5. Jonathan MyEex Posted 12:32 pm
    07 Oct 2009

    Apologies for the double post
  6. Ian Hough's avatar

    Ian Hough Posted 6:02 pm
    07 Oct 2009

    Umbra, you're sure right that offsets can be a puzzle. I'm still puzzled by how exactly the NC GreenPower program works despite reading through their entire website! It seems like they have two completely separate programs - a renewable energy program and a carbon offset program. They list their clean energy projects, but I can't find a list of their offset projects -- all they say is that they look for forestry and methane. My advice to Mary B. would be to contact her power company and ask them to identify the exact projects her money would support.
  7. ericr's avatar

    ericr Posted 9:14 am
    08 Oct 2009

    Carbon offsets in energy production are further complicated in that they are purchases of "renewable energy credits", or "green tags", that is, someone else has already bought the actual energy and you're just buying the "renewable" label. You're only taking credit for the kind of energy that's already sold. It would be like McDonald's selling the contents of a Happy Meal separately from the packaging. The green tag is just the packaging.

    Umbra is right to suggest that the "credits" be called only a contribution to renewable energy companies. You're offsetting your guilt, not your emissions.
  8. pjrotary Posted 4:26 pm
    08 Oct 2009

    Good stuff on carbon offsetting Umbra. Here’s another place to calculate and donate to neutralize your carbon emissions. And a humanitarian reason – supporting projects like providing solar cookers into developing countries and training locals to build and use them. Eleven Rotary Clubs from five continents – business people who voluntarily provide humanitarian services - have come together to create The Sustainability Trust – http://www.TheSustainabilityTrust.org – where you can calculate flight, auto and domestic emissions. Offset donations go towards humanitarian and climate projects being run by some of the 33,000 Rotary Clubs around the world.
    1. racje Posted 3:09 pm
      10 Oct 2009

      Pjrotary,

      You can't neutralize your carbon emissions by buying offsets.

      That's what Umbra tells us: just think of the "offsets" as a charitable contribution to make a little bit of green energy someplace. It won't erase your emissions. They will still be there in the atmosphere, warming it up.

      So, go ahead and offset your guilt--it will do some good--but don't think your emissions are compensated for. The only way to remove the effect of your emissions is not to emit them.
  9. thollandpe's avatar

    thollandpe Posted 3:20 pm
    14 Oct 2009

    What's all this about carbon neutral and why the climate fundamentalism?

    The question was whether the green tags offered by NC utilities were legit, and the answer was yes (I think).

    No, you may not be able to go legitimately carbon neutral by only buying offsets. But how many of us can take a serious bite out of our carbon footprints without using offsets or RECs as part of the strategy? Part of, not the only strategy. One of many weapons in the anti-climate-change arsenal.

    My worry is that by tarring some sketchy offsets is that you contribute to the de-legitimization of all offsets, and by extension legitimate products like Green-e certified RECs. From an institutional perspective that enables the "all offsets are crap" dodge away from supporting any green energy product. I've seen it used, often.

    Yes, there is diligence due but there are plenty of valid products out there. Sheesh, it’s like saying that because one charity has a Lear jet and palatial offices, that no thanks I won’t support the Jimmy Fund this year.

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