Column: July 2008

GREEN TIPS: Using carbon offsets

By Leigh Glenn

Got offsets? Help neutralize your carbon output.

Don Beyer Volvo, which gave car buyers collapsible bikes and native dogwood trees during a July sale two years ago, has been keen on reducing the dealership’s environmental impact. So the Falls Church, Va., store’s general manager Jon Hall—who bikes 17 miles to work—began researching carbon offsets to counter the carbon dioxide the store emits by using fossil fuel–based energy.

Last fall, to help mitigate its greenhouse gas emissions, the store started buying renewable energy credits from renewable-energy broker Clean Currents. Hall thought the idea would appeal to customers, too, so in January the dealership bought offsets to cover their first year of owning a Volvo.

ON TARGET WITH OFFSETS
Greenhouse gases (GHGs) include carbon dioxide, methane, and various fluorocarbons that spread throughout the atmosphere. An offset is an “investment” you make in a GHG-reducing project (such as tree planting), often selected and managed by a third party, that helps neutralize your own GHG emissions.

Dealer Jim Hand, Hand Motors, Manchester Center, Vt., winner of the 2007 USA Today Dealer Innovation Award, had a goal: become “carbon neutral.” He started with energy conservation and efficiency measures, then followed up with offsets. After doing some research, Hand chose Charlotte, Vt.–based offset provider NativeEnergy.

Once you’ve conserved to the max, say experts, calculate your carbon footprint for the amount of GHGs you’ll need to offset. (There’s a carbon calculator for businesses at www.carbontrust.co.uk.) Offsets are sold by the ton and have steadily risen in price. Last year, the average paid was $6.10 per ton, with a high of $300.00 per ton, says Ecosystem Marketplace. “Hopefully, the amount spent on offsets goes down” as you learn to conserve, says Hand.

The voluntary-offsets market is still emerging, with little to no regulation at the moment. (The Federal Trade Commission may seek to regulate the way offsets are advertised; see “Washington Update,” page 23, AutoExec, July 2008 print edition.)

Since there are hundreds of providers and more than 20 standards from certification bodies like the Voluntary Carbon Standard Association (www.v-c-s.org), do your homework before buying offsets. Ask these questions:

• Is it real? To be carbon neutral, an offset has to represent reductions that are in addition to those that would have occurred anyway, such as measures required by law, says Mark Trexler, managing director of Global Consulting Services for Oxford, England–based EcoSecurities.

• Is it affordable? If not, no one will buy them, says Trexler.

• Is it unique? A true offset is sold only once.

• Is the offset monitored and verified over time by a certifying body, such as VCS?

• Does it help educate? Ideally, voluntary offsets can be used to educate people about climate change and ways to reduce energy demand, says Trexler.

(For more on buying offsets, go to
www.ecosystemmarketplace.com/media/pdf/BSR-EMVoluntaryCarbonOffsets.pdf
For offset providers, visit
www.cleanair-coolplanet.org/ConsumersGuidetoCarbonOffsets.pdf.
And for possible tax benefits, consult tax experts.)