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Carbon Credits – Selling of Indulgences or step towards sustainability?

Carbon Credits – Selling of Indulgences or step towards sustainability?. EEA Staff Seminar 5 September 2006, 10 – 11.30 h Kongens Nytorv 28 Room 28.1.1. Offsetting climate effects of flights on behalf of the EEA. Next steps for implementing a carbon credit scheme in the EEA.

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Carbon Credits – Selling of Indulgences or step towards sustainability?

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  1. Carbon Credits – Selling of Indulgences or step towards sustainability? EEA Staff Seminar 5 September 2006,10 – 11.30 h Kongens Nytorv 28 Room 28.1.1

  2. Offsetting climate effects of flights on behalf of the EEA Next steps for implementing a carbon credit scheme in the EEA EMAS travel and accomodation project Burkhard Huckestein

  3. What do Rock ‘n Roll, football, and big business have in common? • List of carbon credit purchasers includes: • Rockbands like the Rolling Stones, Coldplay etc. • Sports events like the FIFA Worldcup 2006 • World Bank and some private banks • Big car and oil companies • Corporate titans like Motorola, DuPont etc. • Paramount Pictures • Film stars, artists, politicians • Policy like British Government

  4. Carbon credits are a marketing gimmick, but… they are environmentally useful if… • the provider of carbon credits is reliable • the offsetting projects are useful • the climate impacts are properly calculated • there is an external monitoring of projects • ...

  5. „This carbon offset scheme for travellers has really taken off!“

  6. Offsetting strategies of carbon credit providers • Afforestation • Eco-efficiency • Renewable energy • Emission rights (EU ETS) • Clean Development Mechanism • Strategy mix • ...

  7. Climate impact of EEA‘s travelling Offsetting strategy EEA Designing a carbon credit scheme for the EEA

  8. Next steps for the EMAS travel team and the EEA • Evaluate options for buying carbon credits • Identify carbon credit providers • Defining requirements for carbon credit schemes • Call for tender among carbon credit providers • Calculate climate effects of all EEA flights in 2006 • Buy carbon offsets • Communicate the EEA carbon credit policy to encourage followers

  9. Evaluate options for buying carbon credits • Buying allowances from the EU ETS + EU bodies should apply to EU schemes - No environmental impact due to too many allowances in the first ETS trading period (until 2007) • Buying carbon credits from a provider + high probability of environmental benefits - administrative effort (call for tender, etc.) Conclusion: For 2006 and 2007 buying carbon credits is the better option, if provider meet environmental and administrative requirements

  10. Identify carbon credit providers List of more than 20 provider of carbon offsets • Atmosfair (Germany) • Climate Care (UK) • Carbon Fund • Climate Friendly • Greenseat • My Climate • The Carbon Neutral Company • CO2 Balance • ...

  11. Defining requirements for carbon credit providers Environmental criteria • Proper description of offsetting projects • Additionality and perpetuality of carbon reduction • Transparent scientific assessment of impacts • Effective implementation and monitoring Administrative criteria • Transparent accounting (e.g. Annual Financial statements) • Low share of overhead costs • Representative steering committee (incl. NGOs) • Effective administration (incl. customers relation and marketing)

  12. Call for tender among carbon credit providers • Are the CO2-reductions of offsetting projects evaluated and monitored (e.g. CBA)? • Are climate impacts beyond CO2 taken into account? • Are there environmental side effects? • Are there social and economic side effects? • Are there enough projects? • Where does the CO2-reduction occure (within or outside EU)? • What is the price per CO2-equivalent?

  13. Calculate climate effects of all EEA flights in 2006 • Get a list of city pairs for flights by our travel agency • Calculate CO2-emissions by average fuel consumption of aeroplanes • Model average climate contribution beyond CO2 (e.g. Radiative forcing) • Buy carbon offsets

  14. Communicate the EEA carbon credit policy • Communicate our carbon credit scheme • Make transparent our selection process • Define and communicate quality standards for carbon offset projects • Bring forward an eco-label for carbon offset provider

  15. Thank you for your attention!

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