NewEnergyNews: NEED STANDARDS FOR OFFSETS (W/OFFSET TIPS)/

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    Founding Editor Herman K. Trabish

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    Wednesday, August 29, 2007

    NEED STANDARDS FOR OFFSETS (W/OFFSET TIPS)

    It will help when U.S. national leaders step up to their responsibilities and deal the country into the world emissions markets. But private "offsets" will still require independent assessment and the assessment will require standards and regulations. Right now, the offset marketplace is like an oil boom town -- wide open.

    Carbon “offset” market that helps you go green lacks standards, oversight
    Sarah Jane Tribble, August 26, 2007 (San Jose Mercury-News)
    and
    Tips On Buying Carbon Offsets
    August 26, 2007 (San Jose Mercury-News)

    WHO
    Responsible citizens, aware of climate change, who are seeking to offset their inevitable greenhouse gas (GHG) emissions; California Climate Action Registry, a non-profit founded by state law (Diane Wittenberg, president);

    Truth or Hype? Don't know. Cute girls. (click to enlarge)

    WHAT
    In a potentially trillion-dollar market, there are not yet adequate standards and regulations governing “offsets.” Profiteers and scam artists are taking advantage of good intentions, as they usually do until controls emerge.

    WHEN
    Problems have existed since offsets were initiated and will continue to exist until adequate standards and regulations are established.

    WHERE
    In the air.

    WHY
    - Demand for offsets is rising, though no certain and comprehensive statistics are available. EcoSystem Marketplace, a research firm, puts the increase in sellers at 200% or greater.
    - Travelocity and Expedia offset travel emissions. Google is going “neutral.”
    CA utility PG&E’s “Climate Smart” tags a “neutral” fee on 1800 customers’ power bill tho the company is still looking for the right “offset.”
    - Popular online offsetters: Climate Trust, NativeEnergy, Terrapass.
    - Popular projects: wind farms, methane digesters.
    - Controversial project: planting/protecting trees. How much new trees offset is in doubt and whether the protected trees needed or got protection is not clear.
    - Clean Air-Cool Planet studied 30 offsetters for transparency and credibility. Only 8 scored above 5 (on a 1-to-10 scale).
    - Confusion arises even over legitimate offsets as between Terrapass.and Gallo Farms.
    - California Climate Action Registry is trying to establish state standards.
    - Suggested questions:
    1. Are the offsets certified (Voluntary Carbon Standard, the California Climate Action Registry's offset protocols, Climate Community and Biodiversity Standard)? If not, why?
    2. Is there proof the offset is sold only once? Is the transaction is registered?
    3. Is there proof the offset adds GHG emission reductions?
    4. Is there proof the project is verified and measured by an independent onsite auditor?

    First principles. (click to enlarge)

    QUOTES
    - Julia Bovey, spokeswoman, Natural Resources Defense Council: "Right now the status is buyer beware…There are a lot of companies out there . . . but there are concerns that have to do with whether the money is going to where they say it is going."
    - Robert Parkhurst, manager of PG&E's Climate Smart: "There are so many different programs out there that are doing this…You really have to dig down."
    - Derik Broekhoff, senior associate, World Resources Institute: "Unfortunately, it's perfectly easy for the buyer and seller in the transaction to be perfectly happy and yet it's the atmosphere that could get the short end of the stick…"
    - Ricardo Bayon, managing director, Ecosystem Marketplace: "Right now the voluntary market is in a very chaotic disaggregated phase of development, one that is changing rapidly…Standards are emerging, and it is only a matter of time until we have credible third parties certifying offsets and doing so in a way that allows consumers to have a reasonable assurance that the credits they are buying do truly reduce emissions."

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