The New York Times has an excellent article today about "offsetting": a mechanism where you calculate the amount of carbon emissions that your energy use creates, and then purchase an "offset" that pays for an equivalent amount of clean energy. Numerous websites, such as www.carbonfund.org and www.terrapass.com, now use these mechanisms. (See Gas Guzzlers Find Price of Forgiveness, April 22, 2006)
Certainly these programs serve two excellent and necessary purposes: first, they inform people about their carbon emissions; and second, they provide a means of funding clean energy -- both of which are critically needed.
But are these "offsets"? Dictionary.com (one of the most useful sites on the Internet - sign up for their word of the day) defines "offset" as "An agent, element, or thing that balances, counteracts, or compensates for something else."
Maybe I'm missing something here, but how does my purchasing 1,000 kw/hr of wind energy "offset" the CO2 emissions from my use of 1,000 kw/hr of electricity generated from coal? I can't offset my carbon emissions with something that's carbon neutral, but rather need to take action that is actually carbon negative -- such as actually planting trees, or taking carbon out of the atmosphere and actually sequestering it.
The New York Times notes that these "voluntary offset programs" have become increasingly popular in the past two years. But, according to the Times, "it is not clear whether they actually do any good, or are just one more way for Americans to feel good about doing things that pollute the atmosphere." And as Chip Giller, President of Grist.org stated: "To some extent it's a way for people to buy their way into heaven. . . On the other hand, this is such a big macro problem that this is one of the few things people can do to really make a difference."
Those of us who advocate for clean energy and sustainability should be accurate in what we sell, and not overstate the benefits.
Great title!
I feel I have to chime in here on this. I was a founder of Renewable Choice Energy, the wind power company that just took Whole Foods 100% wind powered. I'm also starting a company selling more complete Offsets using wind power, newly planted trees, and preserved rain forest. Funny enough, the site is called Offset My Life- no word if we'll have Offset My Ass).
Offsets are real, they are environmentally beneficial, and anything but just a way for us to ease our ecological liberal guilt (though they are excellent at that as well).
The thing to understand is that when a wind farm is built, it's replacing a portion of an unbuilt fossil fuel plant. If we weren't putting so much wind on the grid, the energy would have to come from somewhere- right now that's statistically from burning coal.
Offsets like preserving land and planting new trees are obviously tangible actions that have very real environmental benefits.
Offsets come in different flavors- wind, solar, pollution reduction, planting trees, etc..., but the one thing they all have in common is that they are a market mechanism for reducing pollution. It sounds a little funny to pay someone for the right to pollute (buying credits), but in the long run it works.
Great blog Stephen, keep up the good work,
Shea
Posted by: Shea Gunther | 04/22/2006 at 09:19 AM
Shea,
Thanks for your comments. I completely support the work that you and others do to use the market to reach sustainability and make renewable energy viable. In fact we're considering having a "carbon neutral" family event next year that would use "offsets" for both practical and educational purposes.
My question was a genuine one, though, and possibly I dont exactly understand the "offset" concept or I'm being too literal with the term. Let's say I have a choice of driving to a supermarket or walking. Won't there be less CO2 emissions if I walk regardless of whether I pay something to subsidize future development of wind farms? Yes, the future windfarms may obviate the need for future coal plants, but aren't we all better off if I walk (and be more energy efficient generally) AND do things to support wind farm development?
We must develop renewable energy, but we also must be much more energy efficient, and we should be careful to strongly encourage both. I guess the danger with "offsets" is that we that we shouldnt get the idea that we can simply "buy our way into heaven." We must remember that we have to work our way there too through energy efficiency and -- god, forbid! -- energy conservation. As Amory Lovins has pointed out, "negawatts" are our cheapest form of energy and there's still tons of low hanging fruit to go after.
Best of luck with your new company!
Posted by: Stephen Filler | 04/23/2006 at 01:19 PM