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frequently asked questions
All you need to know about offseting
What can individuals do to help minimize climate change?
Our activities as individuals make up about 40% of the UK's total carbon emissions, so it stands to reason that by modifying our activities we can make a huge difference. These modifications could include cutting back on things like electricity consumption, reducing how many miles we drive each year and picking a fuel efficient car over a less efficient one. Reducing our air travel to trips which are absolutely necessary would also make a major contribution. Most of us cannot abandon these activities entirely but if we all make a conscious effort to cut back that’s a start.
What is a “carbon footprint” and how do I measure it?
What is a “carbon footprint” and how do I measure it?
A “carbon footprint” is the term used to describe the amount of carbon dioxide and other related greenhouse gases that someone causes over a defined period of time. Usually a carbon footprint is measured on an annual basis and in tonnes. If you want to measure your own carbon footprint, use the calculators in the For Individuals and For Business sections of this site. They’re based on DEFRA’s guidelines for measuring carbon and so represent best practice. Alternatively you can use DEFRA's own calculator which can be found by going to their Act on C02 site. The average annual carbon footprint for a person in the UK is about 4.5 tonnes...what's yours?
What are carbon offsets?
What are carbon offsets?
Basically, it’s a way of paying back your carbon output. If you emit a tonne of CO2, you purchase offsets to fund a project that will prevent a tonne of CO2 or the equivalent amount of other greenhouse gases, such as methane, being released into the atmosphere. These offsets come from a variety of sources including clean electricity projects, destruction or capture of harmful greenhouse gas emissions or absorption of CO2 by trees and other vegetation.
Why should I offset my carbon emissions?
Why should I offset my carbon emissions?
There’s no law that says you have to offset your carbon emissions – it’s entirely voluntary. With the increasing awareness of the effects of climate change, more and more individuals and businesses are taking carbon reduction and offsetting steps. Businesses are driven by supplier pressure and customer preferences, public image and a moral obligation to help counter climate change. Similarly, increasing numbers of individuals feel it is their public duty to reduce their impact and to support carbon reduction projects by purchasing offsets.
Can carbon reduction and offsetting help in the fight against climate change?
Can carbon reduction and offsetting help in the fight against climate change?
In a word, “yes”. We believe in a three step process to mitigate climate change – avoid emissions, reduce emissions and offset what cannot be readily reduced. However we do not think it is practical to expect most people to stop traveling abroad or using their car. Offsetting provides a means for you to provide essential financial support to carbon reduction projects; projects that would not have happened without this financial support. Of course offsetting is only effective if the offsets that you purchase are of sufficient quality. At Carbon Passport we offer only the highest quality offsets; those that have passed the accreditation procedures developed and implemented by the United Nations.
Carbon offsetting has received some criticism from the press – why?
Carbon offsetting has received some criticism from the press – why?
Some argue that offsetting excuses people from having to make a reduction in their emissions. In our experience, people who buy offsets on a voluntary basis are conscientious and environmentally aware, and will make an effort to reduce their carbon emissions.
The quality of the offsets offered by a number of unregulated companies has been called into question. Most offsets that have been offered to date are VERs (Verified Emission Reductions) and many of these have involved forestry projects. These have been criticized for a number of reasons:
The quality of the offsets offered by a number of unregulated companies has been called into question. Most offsets that have been offered to date are VERs (Verified Emission Reductions) and many of these have involved forestry projects. These have been criticized for a number of reasons:
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For being ineffective (i.e. the promised emission reduction did not take place, is based on future uncertain expectations or poor science)
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For being non-additional (i.e. for obtaining income from offsetting when the project would go ahead without such financial support).
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For a lack of rigorous verification procedures which leads to doubts about the quantity of reductions claimed
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For lacking a system which tracks sales of credits, resulting in the potential for the same offset to be sold several times over.
Carbon Passport will only sell the highest quality offsets. At present, we only sell Certified Emission Reductions (CERs) which have passed the scrutiny of the United Nations’ Clean Development Mechanism and which DEFRA propose will be approved under their proposed Code of Best Practice.
Who regulates the carbon offsetting business?
At the international level, countries that have ratified the Kyoto Treaty are required to make reductions in their greenhouse gas emissions. As part of its commitment to meeting Kyoto targets, the UK (via the EU) has created carbon emission caps for its most energy intensive businesses – this is known as the compliance sector. The performance of these businesses relative to their caps and the offsets that they purchase to meet their caps is monitored and regulated by DEFRA. By contrast, offsetting in the voluntary sector (i.e. everyone other than those businesses in the compliance sector) is not regulated. However, as a result of consumer concerns, DEFRA launched a public consultation into the voluntary offset market and intends to publish a voluntary offsets code of best practice by the end of 2007. The purpose of this code of best practice is to improve consumer confidence. Carbon Passport welcomes the introduction of such a code of best practice and intends to comply with it in full.
What are VERs?
VER stands for Verified Emission Reductions, which refers to the market for carbon credits outside the Kyoto Protocol compliance regime.
In principle VERs are similar to CERs in that they are intended to represent CO2 reductions from projects which can then be bought and used as offsets. VERs are usually derived from smaller scale projects which, it is argued, would find it uneconomic to meet the costs associated with the CDM processes. Unfortunately, this generally means that VERs are subject to much less rigorous independent checking processes than emission credits in the regulated sector ( such as CERs). This leads to criticism that CO2 reductions are overstated or would have occurred in any case.
Carbon Passport does not currently supply VERs as we remain to be convinced that the processes are in place to satisfy the key criteria of additionality, uniqueness and verifiability. Also, VERs may not satisfy the requirements of DEFRA’s proposed code of conduct on offsetting although this is still to be finalized.
Some good independent quality standards are under development which, if combined with a registry of credits (to avoid double counting) could make qualifying VERs a quality source of offsets. At present, however, most VERs on the market would fail to meet these standards. Most existing offsetting firms offer VERs only. Until we are confident that VERs offer real verifiable and additional reductions in carbon emissions, Carbon Passport will not sell them.
What are CERS?
CERs (Certified Emission Reductions) are carbon credits generated by CDM projects which have completed the registration process. Each CER represents the reduction of one tonne of carbon dioxide equivalent, and CERs are only issued by the CDM Executive Board once estimated abatement volumes have been independently validated, and a stringent verification process is in place for ongoing monitoring.
CERs have unique reference numbers and, when traded, are logged on an electronic registry to track their sales and prevent double counting of credits.
A few VERs are derived from CDM projects, generally for the period before the project is registered by the CDM executive board. This does not necessarily make them more robust than other VERs. Currently there is no international registry to prevent double selling of such VERs and there is no guarantee that the pre-registration VERs are truly additional (the VERs would be deemed additional only if the project would not have happened without this additional revenue stream).
How do I offset my carbon emissions?
You can offset some or all of your carbon emissions on this website. Use our calculators to work out your carbon emissions from driving, flying and electricity/gas consumption and then purchase the required volume of offsets online using your credit or debit card. Businesses can use our business calculator or contact us for assistance in determining their carbon footprint and purchasing offsets.
Is Carbon Passport a charity organisation?
Carbon Passport is a limited company with shareholders. We believe that climate change is the biggest single issue facing our planet today, and as such is best tackled in the business world. Adopting the business rather than charity approach will lead to competition among businesses to deliver climate change solutions efficiently.
Why are there such large variations in the price of carbon offsets?
This can be for a number of reasons. Offsets from mechanisms that are approved as part of the Kyoto Protocol (CERs, EUAs/AAUs, ERUs) are traded internationally and have a high market value compared with VERs that do not comply with the Kyoto Protocol. VERs have been developed to differing standards and accreditation processes and there is no single, internationally traded price for such offsets. They are also generally subject to less stringent audit and verification processes and may not meet the additionality principle (whereby offset projects are deemed additional if they would not have happened without the additional income that comes from the sale of offsets) and so can sell their offsets at reduced prices. Of course this does not mean that they are a lower cost means of offsetting as they may not truly be offsetting the amount of carbon claimed. Carbon Passport could sell such VERs at a lower price than our CER product but our core principle is that we will only sell offsets which offer real, verifiable and additional reductions in carbon emissions.