1. Code of Best Practice for Carbon Offsetting Paul Fisher

2. Agenda • The need for a Code of Best Practice • The Code • Aviation emissions factors • Accreditation Scheme

3. The need for a Code • Offset company A – 1.2t CO2, £9 -16 • Offset company B - 3.14t CO2, £23 • Offset company C – 4.0t CO2, £38 • Lack transparency and inconsistent pricing • BBC 2007 • Carbon offsetting schemes offer to ease your conscience, but choosing which company to use can be very confusing as there’s no consistency in how they calculate your "carbon footprint" or how much they charge Which? 2008

4. The Code • Ensure consumer confidence in an emerging market and • Continue market growth through this confidence • Informed consumer choice • Signals quality and standards to the UK market • Quality mark will indicate offsets that the Code’s standards

5. The Code - environmental integrity • Kyoto-compliant credits only (EUAs, ERUs, and CERs) • Forestry credits - guarantee renewal or replacement • Cancelled within 6 months to EU ETS • Provide evidence to the Accreditation body

6. The Code – consumer information • Explain the role of offsetting • Marketing to reflect the offset • Clear and transparent pricing • at point of sale • Emission to offset (tCO2) • Price per credit (£/tCO2) • Total price • Price for offset service

7. The Code – calculating emissions • Calculate emissions to be offset accurately • Methods • Defra’s Company Reporting Guidelines • WRI Greenhouse Gas Protocol • ISO standards such as ISO14064 • Direct emissions only

8. The Code - aviation Standardisation with flexibility • Radiative forcing factor 1.9 • Non-direct flights, circling and delay – uplift factor 9% • Domestic, short and Long Haul (CORINAIR) • Seating class, occupancy efficiency (CAA) • Freight transported on passenger services • Emission factor level of detail • Bespoke emissions factors for specific operations

9. The Code - accreditation • Apply for accreditation to carry the Quality mark • AEA assess against Code’s criteria • Online • Fees

10. The Code - accreditation

11. The Code - accreditation • AEA to check compliance • Audit 5% of the accredited market • 6 and 12 months • Statement of account • Volume of offsets sold • CITL/ITL id numbers for all credits • Date of cancellation • Emissions factors calculations • Consumer information

12. The Code - consultation • Organisation vs ‘product’ • Solvency • Delivery risk • Cancellation timescale • Fees – sliding scale • More auditing • www.defra.gov.uk