carbon offsets |
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![]() n the 142 years since German biologist Ernst Haeckel introduced the word "ecology" to the world, the American government has tried many solutions to fix the environmental damage caused by its citizens. From Congress protecting woodlands with the Forest Reserve Act in 1891, to shielding the atmosphere with the Air Pollution Control Act of 1955, to safeguarding the water with the Clean Air Act of 1970, the efforts have all tried to limit man's encroachment on the natural world, and clean poisons from what we eat, drink, and breathe. But lately, Americans - and American companies - are looking for things they can personally do to save the environment. And the latest craze, it seems, is carbon offsets. |
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1. Most carbon calculators are designed for consumer use. All carbon-offset services use carbon calculators - tools that help determine how much carbon you emit based on information you input about your monthly or yearly energy usage, fuel usage, and recycling habits - that are generally designed for consumers, including calculators for homes, autos, flights, and even weddings. While there are not yet any carbon calculators specifically for exhibitors, there are a few business-oriented calculators that can approximate several of the factors involved in trade shows. Carbonfund.org, for example, offers a downloadable business worksheet. You complete the form and e-mail it back to Carbonfund.org, and the organization will figure your approximate carbon footprint. TerraPass Inc.'s (www.terrapass.com) Carbon Balanced Business program walks you through a similar process, but allows you to do it online. Climate Friendly Pty. Ltd. (www.climatefriendly.com) also has a similar service that will consult with you to gauge your business's carbon footprint by estimating your travel, shipping, and electrical use. Finally, Zerofootprint Inc. (www.zerofootprint.net) offers Enterprise Carbon Management solutions, where you consult with the service to create a customizable calculator that you and your employees can later use online to measure, monitor, and offset your carbon emissions. |
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2. The cost of offsetting your carbon footprint can vary. ![]() Most of these services sell offsets by the metric ton. That is, once you calculate your carbon footprint (the average American generates an estimated 20 metric tons of CO² a year), they will charge you a fee based on how many metric tons of emissions you want to offset. While the offsets industry charges an average of about $10 per each metric ton of CO² removed from the air, the cost can range anywhere from $4 to as much as $99 per metric ton. For companies that charge more than the $10 going rate for offsets, it's a good idea to ask the service to explain the reasons for the higher cost as some sponsor projects are more ambitious than others. Carbon-offset purchases made by individuals are tax-deductible, and company purchases will generally count as a business expense. |
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3. Not all the money you spend goes toward offsetting carbon. While for-profit carbon offsetters might offer more projects than nonprofits, they are sometimes more reluctant than their nonprofit counterparts to reveal their administrative fees and the percentage of monies that go directly to the offset projects. Even though there is no hard rule of thumb for what percentage a company should allocate to its CO²-removing projects, if it won't reveal how it allocates its money, find another service. Financial data for nonprofits, such as Carbonfund.org, is available on the independent Guidestar Web site (www.guidestar.org), which offers a searchable database of more than 1.7 million nonprofit organizations. If you're purchasing offsets from a company that is anything but transparent on this issue, you might think you're giving money to a wind farm when you're really throwing it to the wind. |
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4. There are many different types of carbon-offset projects. A variety of services offer more than one kind of carbon-reduction project and let you select the one you like from that roster (although not every service will allow you to choose). These projects range from renewable-energy programs such as solar, wind, and reforestation, to energy-efficient efforts which concentrate, for example, on undertakings as diverse as upgrading steam plants in the United States to redesigning cooking stoves and improving motors that can reduce coal, wood, and gas consumption in developing nations. Your best bet, according to a study by the Tufts Climate Initiative, might be the renewable-energy projects, since measuring their effect is easier than gauging the impact of energy-efficient devices spread over wide, often hard to reach, areas. Renewable-energy endeavors that replace fossil fuels might be of more immediate importance, too, since the U.S. Department of Energy's Carbon Dioxide Information Analysis Center estimates 64 percent of atmospheric CO² comes from the burning of fossil fuels.You'll generally find that most common offsets projects are related to reforestation efforts, whereby you pay to have trees planted, thereby offsetting carbon emissions as the trees absorb carbon out of the air. The "State of the Voluntary Carbon Markets 2007" report asserts that reforestation accounts for 36 percent of carbon-offset projects. |
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5. Not all offset companies are legitimate. |
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