What does it mean to compensate for the climate? How do you do, where does the money go – and does it even make a difference? Private Money works out the concepts.
We travel more and more abroad for every year that goes by, this applies to the world’s population at large. While we are travelling more, we are more environmentally conscious than ever and many have a desire to offset their climate footprint.
What does it mean to compensate for the climate?
When you, for example, climate compensate air travel, you pay an extra fee to compensate for the emissions you cause. The fee is then used to reduce the corresponding amount of emissions elsewhere in the world, often in developing countries. This is done through projects such as planting new trees – to tie greenhouse gases – or by expanding renewable energy to replace fossil fuels.
Climate compensation can also be achieved through the procurement of so-called emission rights. When you climate compensate your trip, emission rights are purchased, which limits the ability of companies in the electricity, industrial and transport industries to emit greenhouse gases.
Here’s how to offset climate change
Climate compensation is usually not possible through airlines. At best, they have a calculator where you can calculate the amount of emissions your trip causes. However, there are a large number of companies and organizations that can help you to compensate for the climate. On their website, you can get help with calculating how much climate impact your trip has – and what a compensation costs – with a few simple button preses
Climate compensation more than aviation
Although climate compensation is something that is primarily mentioned in connection with air travel, on several organizations’ websites, climate compensation can be compensated for more than their travel. By answering questions about living habits such as meat consumption, electricity consumption, and shopping, you can get a compilation of your entire climate imprint – and climate compensate your entire lifestyle.
Why does the price of climate compensation differ on different sites?
The reason why different calculators indicate different emissions and costs depends mainly on two things: how the compensation is calculated and in what type of project the money is invested.
How do I calculate what to pay?
Researchers are relatively in agreement on the carbon dioxide emissions that aircrafts account for, but there is uncertainty about other emissions linked to air travel. For example, the water vapor and the nitrogen oxides released into the atmosphere contribute to increased global warming. Science has not quite landed in exactly how big this impact is, which allows calculators to show different results.
As a consumer, you can keep an eye on whether the emissions are reported in CO2 or in CO2e. The small “e” t stands for “carbon dioxide equivalents”, which means that the heating effect of other greenhouse gases has been converted to the same unit as carbon dioxide – and thus the total heating effect has been obtained.
Where’s my money going?
The compensation you pay may differ depending on how the money is invested. This could be a cheap emission right in the EU’s trading system, large hydropower or wind turbines in China or reforestation and conservation of forest together with small farmers. Getting to know this can feel like a consumer, but may not be necessary either. Keep track of two things and you will know that money goes to good projects and businesses:
Is the compensation verified and certified by an independent third party? Look for the “Gold Standard”, which is regarded as an industry leader with organizations such as the World Nature Fund and Greenpeace behind it.
Do you get proof that you have climate compensated? It is important that you as a buyer get the climate benefit reported and confirmed.
Does climate compensation help?
The issue is widely debated, but the general advice from environmental organizations is: it is better to compensate for climate change than not to do so. However, a common objection is that the main problem remains – that we need to reduce emissions.
The World Natural Fund offers alternatives to classic climate compensation, such as helping people in the countries most affected by climate change. For example, this assistance can be provided through microloans for solar cells. Other alternatives are to support initiatives such as the Fly Green Fund, which works to introduce more of the still very expensive biofuel into the aviation industry.
Make sure that the project you choose to support meets the following points, otherwise, there is a great risk that the climate benefit will be absent:
1. It has additionality
The emissions reductions would not have been “still”, but they are precise because of the money from climate compensation. The climate benefit is also not counted home several times, for example, both in the project you sponsor and in the country’s climate reporting to the UN.
2. It is certified to a recognized standard
The climate benefit must be quantified, that is, measurable. As well as verified and reviewed by independent third parties. The project should be certified under some form of standard.
Perhaps the best known is the Gold Standard. More than 80 international environmental organizations are behind it, including WWF International who has been involved with and developed it. It guarantees not only verified climate benefits, but also social aspects and that the project does not meet any of the UN’s sustainability goals.
Two other recognized standards are Verified Carbon Standard (VCS) and Plan Vivo.
3. It is permanent
Emission reductions should be long-lasting, preferably permanent.
4. It contributes to sustainable development
The project should improve the everyday life of people in the immediate area (for example through social benefits or reduced air pollution) and preserve biodiversity. The locals should be involved.
What type of project should you invest in? And which ones to avoid.
Tree planting projects are often what you first think of, but they are often at higher risk. It is difficult to guarantee that the carbon dioxide stored in the trees remains there. Forests can change owners and cut down, or be attacked by pests, diseases, droughts and fires.
Buying emission rights to have them shredded also gives an uncertain climate benefit, as there is and is expected to be an excess of emission rights in the EU emissions trading system until 2021.
Instead, it is safest to invest in projects that promote renewable energy investments, wind turbines or solar panels. They replace fossil energy and provide a direct climate benefit that is lasting.
One final piece of advice: Feel free to take a little while figuring out how much to offset, usually double the numbers.
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