Carbon Credit Costs

 

A carbon offset is a reduction in emissions of carbon or greenhouse gases made in order to compensate for or to offset an emission made elsewhere.[1][2][3][4]

Carbon offsets are measured in metric tons of carbon dioxide-equivalent (CO2e) and may represent six primary categories of greenhouse gases.[5] One carbon offset represents the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases.

There are two markets for carbon offsets. In the larger, compliance market, companies, governments, or other entities buy carbon offsets in order to comply with caps on the total amount of carbon dioxide they are allowed to emit. In 2006, about $5.5 billion of carbon offsets were purchased in the compliance market, representing about 1.6 billion metric tons of CO2e reductions.[6]

In the much smaller, voluntary market, individuals, companies, or governments purchase carbon offsets to mitigate their own greenhouse gas emissions from transportation, electricity use, and other sources. For example, an individual might purchase carbon offsets to compensate for the greenhouse gas emissions caused by personal air travel. Many companies (see list[7]) offer carbon offsets as an up-sell during the sales process so that customers can mitigate the emissions related with their product or service purchase (such as offsetting emissions related to a vacation flight, car rental, hotel stay, consumer good, etc.). In 2008, about $705 million of carbon offsets were purchased in the voluntary market, representing about 123.4 million metric tons of CO2e reductions.[8]

Offsets are typically achieved through financial support of projects that reduce the emission of greenhouse gases in the short- or long-term. The most common project type is renewable energy, such as wind farms, biomass energy, or hydroelectric dams. Others include energy efficiency projects, the destruction of industrial pollutants or agricultural byproducts, destruction of landfill methane, and forestry projects.[9] Some of the most popular carbon offset projects from a corporate perspective are energy efficiency and wind turbine projects.[10]

Carbon offsetting has gained some appeal and momentum mainly among consumers in western countries who have become aware and concerned about the potentially negative environmental effects of energy-intensive lifestyles and economies. The Kyoto Protocol has sanctioned offsets as a way for governments and private companies to earn carbon credits which can be traded on a marketplace. The protocol established the Clean Development Mechanism (CDM), which validates and measures projects to ensure they produce authentic benefits and are genuinely “additional” activities that would not otherwise have been undertaken. Organizations that are unable to meet their emissions quota can offset their emissions by buying CDM-approved Certified Emissions Reductions.

Offsets may be cheaper or more convenient alternatives to reducing one’s own fossil-fuel consumption. However, some critics object to carbon offsets, and question the benefits of certain types of offsets.[11]

Offsets are viewed as an important policy tool to maintain stable economies. One of the hidden dangers of climate change policy is unequal prices of carbon in the economy, which can cause economic collateral damage if production flows to regions or industries that have a lower price of carbon – unless carbon can be purchased from that area, which offsets effectively permit, equalizing the price

How much does Carbon Offsetting cost?  Price survey!

 Read also: How can a gallon of gasoline produce 20 pounds of carbon dioxide? (fueleconomy.gov)

STUDY : Flight Emissions Calculator Comparison

Ecobusinesslinks.com Carbon Offset Survey
(Prices are for individuals, businesses may be able to get volume discounts)

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Carbon Offset Provider Price (US$/Metric ton CO2) Non-profit Projects Types Project Choice Offset Types Product Certification/
Verification*
(Links see below table)
Verus Carbon Neutral
USA
$2.75 (varies with CCX price) No Various No Personal, Business Chicago Climate Exchange (CCX)
e-BlueHorizons
USA
$5.00 No Renewables,  Reforestation No Home, Car, Air Chicago Climate Exchange, Environmental Resources Trust
Carbonfund.org
USA
$10.00 Yes Renewables, Efficiency, Reforestation Yes Home, Car, Air, Events, Business Environmental Resources Trust, Climate Community and Biodiversity Standards, Chicago Climate Exchange, UNFCCC JI
Carbon Footprint Offsetters
Canada
$10.00 (CER’s) No Renewables No Personal, Business EcoLogo, CCX
ClearSky Climate Solutions
USA
$12.00 No Forestry/reforestation, Methane, Rangeland Management Yes Personal, Car, Air, Custom packages for businesses, events, weddings and organizations Chicago Climate Exchange, Climate Community and Biodiversity Standard
LiveNeutral.org
USA
$12.00 Yes Efficiency No Car Chicago Climate Exchange
The CarbonNeutral Company
UK
$12.64 (USA)
£7.50 (UK VAT incl.)
No Renewables, Efficiency, Reforestation,
Methane
Yes Car, Air, Events, Business, Deliveries, + many others CDM Gold Standard, Edinburgh Centre for Carbon Management, Independent Advisory Committee,
UNFCCC JI, PricewaterhouseCoopers
Terrapass
USA
$13.11 No Renewables, Methane No Car, Home, Air, Events, Business Chicago Climate Exchange, Center for Resource Solutions
3Degrees
USA
$15.00 No Methane, Renewables, Sustainable Forest Management No Home, Car, Air Gold Standard, Green-e, CDM, California Climate Action Registry, VCS, CCX
Standard Carbon
USA
$15.00 No Methane, Efficiency, Renewables, Carbon Sequestration No Car, Air, Sea, Events, Political Campaigns Chicago Climate Exchange
Cleaner Climate
UK & Australia
$15.00-18.00 No Renewables, Efficiency, Methane No Air, Car, Home, Business CDM, VCS (UNFCCC)
Climate Friendly
Australia
$16.00-19.00 No Renewables No Home, Car, Air, Business Office of the Renewable Energy Regulator, NSW Government, Ernst & Young. 
Sustainable travel International
US, Switzerland
$25.35 Yes Renewables No Air, Car, Home, Hotel See Myclimate
Bonneville Environmental Foundation
USA
$29.00 Yes Renewables No Home, Air, Business, Event Green-e Climate Certified
Myclimate
Switzerland
$33.00-99.00 Yes Renewables Yes Air, Events, Business Designated Operational Entity

Services Accredited by or Products from CDM only

Clear
UK
£12.99 No Various, depending on CDM offset projects No Car, Air, Motorbike Home, Commute, Business CDM

Services for which we couldn’t find accepted independent product certification or verification information for all products

Carbon Offset Provider Price (US$/Metric ton CO2) Non-profit Projects Types Project Choice Offset Types Product Certification/
Verification
OffsetCarbonFootprint.org
USA
$1.00 Yes Various (CCX) & Reforestation Yes Personal, Home CCX
Solar Electric Light Fund
USA
$10.00 Yes Renewables No External Calculators n/a
Native Energy
USA
$15.43 No Renewables, Methane Yes Home, Car, Air, Events, Business Environmental Resources Trust (Business projects)
Carbon Clear
UK
£7.34-? No Renewables,
Efficiency, Reforestation
No Home, Car, Air, Babies Depending on project: VCS, VER, Gold Standard or CER
Bleu Ventures Carbon Offset
UK
$24.00-28.00 Yes Efficiency, Renewable energy stove programmes Yes Life, Air , Business, Travel, or on request Ticos for South Africa projects
  a:  Atmos Clear – Low price for 25 Ton option at $135
1. Offset Types: There are hundreds of potential offset types. We have limited our survey to just the most common.
2. Verification: “n/a” means we were unable to determine a third-party verification body. The projects may, however, be verified.
3. Choice: refers to whether customers may choose between project types and/or specific projects.
4. Price: prices change and exchange rates fluctuate. The data listed was first gathered from the respective websites July 21, 2006 
5. Other offset providers may exist. This survey provides a cross section of the industry, projects may be added or removed over time.
6. Some information may be incomplete or has changed. We welcome updates.
* Please make sure that additionality is offered by the offsetting projects. CCX and certainly some others as well do not guarantee this.
 
Links to some important verification organisations:Chicago Climate Exchange http://www.chicagoclimatex.com
Environmental Resources Trust http://www.ert.net
Climate Community and Biodiversity Standard (CCBS) http://www.climate-standards.org
Center for Resource Solutions http://www.resource-solutions.org
Voluntary Carbon Standard http://www.v-c-s.org
Gold Standard http://www.cdmgoldstandard.org
UNFCCC CDM http://cdm.unfccc.int
UNFCCC JI http://ji.unfccc.int
Plan Vivo http://www.planvivo.org

NGAC – GGAS – NSW Greenhouse Gas Reduction Scheme http://www.greenhousegas.nsw.gov.au/
Ticos  http://www.ticos.co.uk/
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2 comments

  1. Carbon Credit World (CCW)
    Carbon Credit World (CCW) has been active in the climate change market since 2004. The company has built up an outstanding reputation as service provider with a clear and in-depth understanding of the carbon market instruments, the financial arrangements and possible types of transactions. CCW mainly focuses on the development of emission reduction projects.

    CCW now manages a considerable portfolio of CDM and VER projects and so far has developed or assisted more than 150 CDM projects – from PDD writing to sales of CERs/VERs and further to support of monitoring and verification of emissions reduction from projects.

    CCW provides services to most of the larger corporate actors in the carbon market as well as key international institutions such as the ADB, EC and UNDP in the field of climate change.
    http://www.carboncreditworld.net
    http://www.greenroutetech.com

  2. Carbon Credit World (CCW)
    Carbon Credit World (CCW) has been active in the climate change market since 2004. The company has built up an outstanding reputation as service provider with a clear and in-depth understanding of the carbon market instruments, the financial arrangements and possible types of transactions. CCW mainly focuses on the development of emission reduction projects.

    CCW now manages a considerable portfolio of CDM and VER projects and so far has developed or assisted more than 150 CDM projects – from PDD writing to sales of CERs/VERs and further to support of monitoring and verification of emissions reduction from projects.

    CCW provides services to most of the larger corporate actors in the carbon market as well as key international institutions such as the ADB, EC and UNDP in the field of climate change.

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