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Environment

Exposed: The Truth Behind Popular Carbon Offsetting Schemes

By Martin Hickman, Independent UK. Posted July 31, 2007.


Academics and environmentalists are questioning the ethics and impact of offsetting -- and suggesting that offsetting schemes have not been as effective as claimed.

A television documentary has uncovered flaws in a series of carbon offsetting schemes intended to make good the global warming gases emitted by flights and other polluting activities.

An episode of the British show Dispatches aired "The Great Green Smoke Screen," which revealed how academics and environmentalists are questioning the ethics and impact of offsetting -- and suggesting that offsetting schemes have not been effective as claimed.

Two of Britain's biggest carbon offset companies, the Carbon Neutral Company and Climate Care, and offsetting schemes at BA, BP and Sky are scrutinised by the programme.

Carbon offsetting has becoming popular in recent years as a way for individuals and business to mitigate the effects of emissions, for example from cars or planes, as publicity has grown about the threat and speed of climate change.

Dispatches claims that schemes run by Climate Care, and promoted by BA, took no account of the "multiplier" effect which increased the damage done by aviation fumes in the stratosphere by a factor of three. In other words, the schemes funded by BA passengers only mitigate one third of the damage that their flights cause. Climate Care, which uses a multiplier of two on its website, told Dispatches that it was unhappy about the way Britain's biggest airline ran its scheme.

A project funded by BP to siphon methane gas from excrement at pig farms in Mexico will only produce half the savings claimed on the company's website, which is now being amended.

In Bulgaria, Sky funds a hydro-power plant that turns water into low-pollution electricity but the manager, Vladislav Tsvetkov, said that Sky's money, though welcome, was "not required" -- a view backed by the Bulgarian bank which lent the capital. The manager later retracted his comments and the Carbon Neutral Company which administers the offsets insisted the money had been critical in establishing the plant.

At Donkleywood forest in Northumberland, the Carbon Neutral Company said the planting of the trees helped the climate. But it emerged that 70 percent of the funding came from the Forestry Commission.

The programme analysed the behaviour of the electricity suppliers which offer customers the opportunity to match their bills to wind and solar power with "green tariffs" while doing no more than meeting their legal obligations to buy renewable power.

Dispatches questioned whether big companies such as HSBC and Sky had any right to claim they were "carbon neutral" as a result of buying offsets to undo the effects of their pollution. Instead the programme hinted that more should be done to limit the polluting activity in the first place.

Dieter Helm, professor of energy policy at Oxford University, told the programme: "It's very, very fashionable for big companies who are actually engaged in pretty polluting activities to somehow embrace the slogan that they have gone carbon neutral, so we can go on consuming their products knowing that actually we're not damaging the environment. If only it was that simple.

"The idea that they can assuage their consciences by buying some offsets in the international market as a substitute to cleaning up their act -- this is good perhaps PR and publicity, but substance I think is seriously lacking."

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This is why a carbon tax is needed.
Posted by: KeepsonTickn on Jul 31, 2007 6:24 AM   
Current rating: 3    [1 = poor; 5 = excellent]
If you burn less fuel, you will produce less emissions. Here in America, we need to take the first step to translate our intellectual understanding of the true cost of carbon based fuels to a level we will consistently act on. I believe the only way to do that is to tax carbon based fuels at the source.

This is NOT the solution to all greenhouse gas problems. But here in America, the worst offender for the last several decades, it would be a start.

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Thats why we need to cap emissions
Posted by: existen on Jul 31, 2007 7:18 AM   
Current rating: 1    [1 = poor; 5 = excellent]
Then offsetting your emissions would be simple. You would buy carbon credits and sit on them to never be used. The scarcity of credits would act like a tax and would force smart companies to find more efficient ways to run as a means to save money rather than having the companies themselves tax the earth as if it had no cost to humanity.

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The greenhouse gas offset industry is an enormous load of hooey.
Posted by: Bart Thesc on Jul 31, 2007 7:22 AM   
Current rating: 2    [1 = poor; 5 = excellent]
It is a very good idea. I support the concept wholeheartedly. I am quite concerned that we are in the process of making a mess of our home planet.

The problem is that there is no hard science and, more importantly, no hard accounting behind most of these companies that sell and exchanges that trade greenhouse gas offsets. Ask what you are getting for your money when you buy an offset, then ask for proof of what they are doing. For the first question you will get something very warm and fuzzy. For the second question you will get a blank stare.

I hate to be the harbinger of reality but planting a tree doesn't do anything to offset the carbon problem the planet is facing. A tree might suck up carbon for the twenty or fifty years that it is alive, but then it dies or gets cut down. Then that carbon goes back into the planetary mix. If your view of the problem is multi-generational, then the tree you planted has a net effect of zero. This means that the company that you bought the carbon offset from, assuming they actually did plant the tree they said they did (this is a big place where the accounting is dodgy at best), just sold you something that makes no logical or scientific sense.

This same sort of problem exists with every scheme that the offset companies want to sell. Windmills? "Oh we forgot to mention the carbon we spent manufacturing them." AND we are accounting for the amount of carbon held back from the dirtiest sootiest coal fired plant we could find. Crops? Same problem as with trees, with a farming bill subsidy to boot. More efficient use of energy in industry or by consumers? Why would you be paying offset money for something that would happen anyway?

I am sure there are companies that are trying to do the right thing, but without clearly defined standards and solid logical science behind what they are doing to remove or sequester these substances there is no reason to believe that money is being spent properly and not just lining pockets.

Next week: Greenhouse offset pricing. Real numbers? Or just figures made up by our marketing department? You be the judge.

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» Hooey? Posted by: KeepsonTickn
There are a lot of good reasons to support the regulation of respiratory...
Posted by: ABetterFuture on Jul 31, 2007 10:18 AM   
Current rating: 3    [1 = poor; 5 = excellent]
...gases, if you own or wish to open a carbon brokerage house.

Otherwise, mind-boggling logic logic goes into advocating for having the government use its police powers to create and enforce an artificial, contrived economy for the benefit of:

a) well-connected brother-in-laws of statesmen, ex-Congresscritters and other slimy creatures who would wisely and equitably oversee respiration quotas, as they do in so many other areas of commerce

b) nations that do not wish to follow suit.

This article has it mostly right, but let me toss something else out there. If carbon trading would really make you feel good, I'll hold my breath for 30"* for every $30 you send me via paypal. No big brother necessary!

* sorry, I will not hold my breath in concurrent increments for that price.

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One big TRUTH missed in this article
Posted by: thunksalot on Jul 31, 2007 4:20 PM   
Current rating: 3    [1 = poor; 5 = excellent]
Are there wind projects that are perfectly viable *without* receiving money from the sale of carbon offsets? Absolutely. Does that mean the money consumers pay for those offsets is wasted? NO! The offsets increase the profitability of being a wind farmer/developer. That profit potential has been drawing *huge* investment into the renewable energy field, producing more renewable energy plants, helping get laws changed to allow more renewables onto the grid and generally increasing the production and use of renewable energy.

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Dispatches' pessimism about offsets not shared by UK Parliamentary environment committee
Posted by: mgbuick on Aug 1, 2007 9:32 AM   
Current rating: 3    [1 = poor; 5 = excellent]
Viewers of 'The Great Green Smokescreen' could be forgiven for thinking that most respected environmental thinkers and organisations are against carbon offsets. The oppositive is true. In the past week the UK Parliament's environment committee concluded that "we believe that the voluntary carbon offset market does have a role to play both in reducing carbon emissions and raising awareness of climate change issues to the general public.”. Individuals and organisations should be encouraged to offset, it said..

Climate Care was happy to be interviewed for a programme that clearly had a critical agenda because we have nothing to hide - we are proud of what we do and are passionate about the role that credible, high quality carbon offsets can play in tackling climate change.

The climate is in crisis. We need fast, global action to reduce carbon emissions, and we have years not decades to succeed. Critics of green products must start from this reality and look realistically at what tools can affect the global changes required. Where the products offer a false hope and poor value they should be criticised. Credible carbon offsets do not fall into this category. They are an essential tool for tackling this problem on a global scale and for making the best use of the money available.

The major climate campaign 'I Count' is calling for the UK to “Help the poorest countries get access to clean energy, help them cut out poverty…”. Climate Care is investing millions in projects that are already doing precisely this. Unjustifiably negative and unbalanced press coverage of carbon offsets threatens an essential source of funds that is starting to make a real difference in the fight against climate change and poverty.

For a more detailed response to the Dispatches coverage see our our newsroom

Michael Buick, Climate Care

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When will we ever learn -- technofixes are no substitute for...
Posted by: Pat Kittle on Aug 2, 2007 1:16 PM   
Current rating: 1    [1 = poor; 5 = excellent]
...ecologically-based birth control.

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Offsetting debate
Posted by: Ben Stimson on Aug 7, 2007 5:44 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
There’s a healthy debate about the benefits of offsetting by individuals and businesses. As one of the companies featured by “Dispatches”, we’d like to offer our view on some of the issues the programme tried to address.

We’ve embarked on a wholly voluntary programme that has reduced our emissions by 20% in the last two years. We’re also working with customers, partners and suppliers to help them take steps to reduce their impact. Ten of our suppliers have followed our lead to go carbon neutral, and thousands of our customers have got involved in calculating their carbon footprint and reducing it. The programme-makers chose not to portray the reality that, for some companies, offsetting is just one part of a broader set of actions and commitments.

We believe that offsetting, alongside a commitment to overall reductions, can be an important tool for businesses and consumers trying to make a difference. Perhaps that’s why most reactions to the programme from Government, NGOs and other stakeholders have largely been in favour of offsetting. In a letter sent to The Times last month, Steve Howard (CEO, The Climate Group) and Jonathon Porritt (Founder, Forum for the Future) wrote:

“Drastic cuts in carbon emissions are necessary to stabilise climate change and carbon offsetting has a vital role to play in this process. While the first step for any business or individual must be to cut emissions at source, offsetting allows those who are not obliged to take action to balance out their carbon emissions by helping to finance low carbon technology projects around the world. Without this valuable source of income, these projects would not be developed.”

In single-mindedly making the case against offsetting, the programme failed to consider the role that it can play in the context of long term commitments made to reduce total carbon emissions. To be absolutely clear on the Bulgaria project: in addition to receiving quality assurances from the Carbon Neutral Company, we’ve taken advice from the Climate Group (an independent non-profit organisation) that the project meets the Voluntary Carbon Standard (a recognised quality standard for offsets). The programme makers chose largely to ignore this as well as an unequivocal statement provided by the owners of the project which stated that carbon finance was critical to the establishment of the plant.

What’s most disappointing of all? The programme didn't offer any practical solutions. This risks further fuelling apathy and confusion around climate change at a time when assurances and guidance are needed most. As a media company ourselves, we believe all broadcasters have a responsibility to understand the effect their programme-making has on consumer behaviour.

Ben Stimson
BSkyB

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