Philip Sargent, Cambridge Energy Forum: The Morality of Carbon Offsets
Fiona Harvey, Financial Times: Voluntary Carbon Trading
Michael Schlup, The Gold Standard: The Gold Standard for Carbon
Offsetting Schemes
Jeremy Nicholson, Energy Intensive User Group: Offsets and Electricity
Generation
At the forum and in email since, there has been very active conversations
on carbon offsets and following up on the issues of "additionality" and
"subtractability" raised at the meeting.
One concern is that offsetting relies on a concept of "what would have
happened anyway" or the "baseline". But there is no obvious way to
define this.
Yes, it is easy to see a tonne of carbon dioxide being emitted; it is rather
less easy to see a tonne that is not being emitted.
The idea behind The Gold Standard (Schlup) is to create and enforce a
procedure such that the additionality is well defined (the carbon saved is
in addition to what would otherwise have been the case).
Perhaps we need a set of different names. Keep the term "offsets" for
avoided emissions, and have another term where the CO2 is actually taken out
of the air, or out of an exhaust stream?
The are various problems with the concept of additionality - such as
the virtual certainty of moral hazard coming into play (e.g. wind
farms might not be funded another way simply because China knows
carbon offset money is available) - but I believe the most significant
flaw is that the test is incomplete. The problem is that we are
dealing with an open system - global energy production and consumption
- and not a series of closed systems. The easyJet flight you offset,
VAT free, for £1.77, and the Chinese windfarm are not the end of the
story.
We need another test, which I term "subtractability". That is, there
needs to be an onus on the carbon offset provider to prove that the
carbon emissions saved really are subtracted from total global carbon
emissions. Several types of carbon offset project fail this test and
must be consigned to the fig-leaf category.
Of the 3 examples I gave earlier, the first two both fail the
"subtractability" test. They run into what I have previously termed
"the displacement fallacy" - see my short note at http://www.zerocarbonnow.org/?p=260.
For example, China is using energy as fast as it can produce it. The
wind-farm may simply mean they produce and use more energy than they
would have done otherwise. Similarly, people given energy-saving
lightbulbs may simply be able to afford more electricity for something
else, or power cuts may become a little less frequent in their
country. [Note that I am not arguing that such projects themselves
are not worthwhile - I'm merely pointing out that they most likely
will not successfully offset your carbon emissions].
Projects that directly remove or destroy GHGs, such as those to
capture HFC23 from factory flues, pass the subtractability test, but
may run into other problems, as we heard at last week's Cambridge
Energy Forum. In fact, since the types of project that pass the
subtractability test - such as tree-planting - tend to fail in other
ways, it's difficult to see how carbon offsetting can do more than
salve peoples' consciences.
Cheatneutral is fun but not a serious criticism. There is no
additionality argument.