Are Carbon Offsets the New Snake Oil? - Planning for a Greener 2008

So the response to my original post has been pretty good. I managed to stir up some emotions relating carbon offsets to snake oil, but that was after all my point. I didn’t really want to sensationalize it too much, but I did want to make the point that, right now, it is buyer beware. Scott, from Search Intelligence, Peter from Sustainable Travel, and Ian from Philathropic Travel all brought up really good points about the industry so I thought I would shift focus away from the potential problems with the market and focus on what you, as an organization or a consumer should look for in determining whether a carbon offsetting is the right choice for you.

Firstly, ask yourself and your organization if giving your customers the option to purchase carbon offsets will make a difference to the planet, add value to your brand, or improve your lead in the marketplace. If you are partnering with a carbon offset organization for marketing reasons, then you need to re-evaluate your reasoning. Simply put, this is too important an issue to use as a trivial marketing opportunity. If you are partnering with a carbon offset organization because you feel that this is a good way to balance your own organization’s emissions, then perhaps you need to look at your internal energy needs and find ways to reduce your emissions first before looking to find ways to offset them externally.

Here are my recommendations to travel marketers, resellers, and operators who are wondering how to incorporate green travel into their organizations for 2008:

1. Make yourself green - In other words, look internally first and look at what you could do to become more environmentally conscious. For my company, Sentias, it meant providing transit subsidies for employees so they could take the bus to work, switching coffee providers in order to reduce non-compostable waste, changing all our light bulbs to CF bulbs, turning off all lights in offices that weren’t being used, and starting a recycling regimen that reduced our entire office garbage to only one large garbage bag a week!

2. Think Globally & Act Locally - Look at ways that you and your organization can make a difference locally. There are often many programs in your community that are looking for partners to help them raise funds for local environmental projects. This may even include providing your staff with incentives to volunteer with these organizations rather than simply providing money. Some organizations, for example, offer a paid day off for every volunteer day spent (up to a limit). This is a great way to reward your staff for being community minded.

3. Long term vs. short term - Environmental issues are not new and there are a number of very strong international organizations who have been working on environmental projects for a long time. Many of these organizations are well recognized, very well established, and most importantly very credible. Establishing a program of giving to these organizations is very low risk and can be easily monitored.

If you do decide to go the route of carbon offsetting, then here are some websites, resources, and questions that you should research before you talk to any organizations:

Motivation
What is the mandate of the organization and what are their principles. If they are a non-profit agency, how do they raise funds and where do the funds go. Who is on the Board of Directors and what is the experience and background of the management team. If the organization is for profit, then the question of motivation becomes more important. Where does the revenue go, who gets paid and how much, and what programs are being supported.

Accreditation
Although there are no regulatory bodies who govern the CO credit marketplace, there are a number of organizations that have been created in order to provide some standards. The offset providers you research should meet some (or all) of the following standards and certifications:

• Kyoto Clean Development Mechanism
• CDM Gold Standard
• CCBA Standards
• Bonneville Environmental Foundation Certification
• Green-e Certification

Disclosure
Does the organization publish or make public an annual report that clearly explains and shows how much of the revenue generate through the sale of CO credits is actual spent on programs that reduce CO2 emissions. Is this report audited by a certified agency and if so, who is the agency and can they be contacted.

DO YOUR RESEARCH
In the end, the decision is yours and the consequences of your decisions are yours as well. Because of the hype surrounding environmental projects, climate change, and CO credits, it is worth your while to develop a long term plan, ask some tough questions, and make some sound decisions based on facts instead of vagaries.

It is fairly evident that the issue of Carbon Offsetting and the organizations that sell CO credits is a controversial one. It is also a subject that goes beyond the scope of my expertise, so I would ask those of you who do know about this subject to please provide your feedback. As more and more travel related companies look to greener ways of doing business, the demand for solutions will increase and so to will the opportunity for snake oil salesmen to pitch their wares. If you have any recommendations on resources, please post them in the comments.

Some useful resources on the subject of Carbon Offsets:

• Wikipedia entry on Clean Development Mechanism
• CDM Gold Standard Website
• CCB Standards
• Bonneville Environmental Foundation
• Green-e
• Carbon Offset Survey
• The Inconvenient truth about the carbon offset industry - Sourced from Philathropic Travel
• Report on Carbon Offset Programs by the Transnational Institute - Sourced from Philantropic Travel

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