So.... what's an offset?

To get this blog started, I thought it would be best to begin by reviewing what carbon offsetting and carbon sequestration are... we'll start with carbon offsets: how does it work? why is it important? who are the key players?

First, Why? The purpose of this blog is not to delve into explanations or philosophical discussions of what global warming is and why it is bad for our planet. Suffice it to say that human activities have increased the amount of CO2 in the atmosphere from preindustrial levels of 280 ppmv to around 380 ppmv today. Geologically speaking, this rate of change in atmospheric CO2 is unprecedented. Furthermore, the Earth has not seen such high levels of atmospheric CO2 for roughly 40 million years. Carbon offsetting is a way for people to reduce their individual CO2 emissions in an attempt to slow anthropogenic global warming. In the words of carbonfund.org, the idea is to reduce what emissions you can, and offset the rest.

Second, How? What does carbon offsetting actually mean? A key idea in considering one's impact on the planet is that of the carbon footprint, or how much CO2 is emitted as a result of one's actions. For instance, driving my subaru outback 2,000 miles emits about .74 tons of CO2. This is just one of the many components of my carbon footprint; others include how I heat my home and how often I fly. Once you've calculated your carbon footprint, you can turn to a company like carbonfund.org to buy carbon offsets. When you pay for carbon offsets, you are paying for the equivalent of your energy use (using the currency of CO2 emissions) in alternative energy, energy efficiency, or carbon sequestration (for example, through reforestation). According to carbonfund.org, it would cost about $4 to offset that 2,000 mile road trip in the subie.

So, who are the main players in this seemingly simple equation of buying and selling carbon offsets? First, there are those who purchase offsets: businesses, individuals, event coordinators, organizations... the list goes on. Second, there are those who sell offsets: including groups like carbonfund.org, LiveNeutral, Terrapass, and NativeEnergy. Some groups are non profit, others are for profit. Third in the equation are those who are actually producing and developing projects to generate alternative energy, improve energy efficiency or sequester carbon. These groups can range from owners of wind farms to producers of new technology for fuel efficiency. Yet another key group are those who certify the producers of marketable offsets; they are poised to act as watch-dogs to ensure that buyers don't get 'greenwashed'. There is also a host of mediators and third parties involved in the trading of carbon credits and offsets. The final player, and one that is poised to become more involved in the near future, is the Federal Trade Commision. The F.T.C. is in charge of guidelines for environmental advertising, and there haven't been changes made to these rules since 1998. Given the myriad of new activity on this front since then, it is long past time for the F.T.C. to step in and insert a legal backbone into the carbon trading market.