So after writing about how I offset the pollution I create by driving with a lil help from Drive Neutral, I got a comment from Sean about Carbonfund, which appears to do something similar at a lower cost.
Both are nonprofits. Both seem to be run by nice people who wanna change the world — in a green way :)
And both buy carbon credits from Chicago Climate Exchange (CCX), a group of US companies that made a pact to lower CO2 emissions (read the post on Drive Neutral for more deets on CCX) — though Carbonfund also invests in other renewable energy projects.
CCX posts on its main page the current price per ton: about $4 right now. That, plus a brokerage fee of about 20 cents per ton, is what all the companies buying CCX credits pay.
But it costs $5.50 per metric ton offset via Carbonfund, vs. roughly $7.50 per metric ton at Drive Neutral.
So why the price diff?
This is the question I posed to both Eric of Carbonfund and Jason of Drive Neutral. Here’s what I found out.
Jason of Drive Neutral says that as Drive Neutral’s goal’s to be entirely revenue supported ASAP — as opposed to relying on grants or donations. “$5.50 per ton would barely cover the costs of offsets alone, much less staff (we have a very, very lean staff by the way), website, decal, press releases, conferences, and other marketing/outreach costs.”
But Eric says that Carbonfund’s already financially self-sustaining through its offset work. “We do not receive government grants or foundation assistance. Everything we do is tied to the offsets.”
Hmm… Okay. So both nonprofits also rely (or plan to rely) solely on revenues to sustain their work. What do they do that’s different?
It seems that the two nonprofits’ philosophies — on how to really get the most people involved in solving climate change — differ.
Carbonfund’s take: “To truly solve climate change we need a couple million people going zero carbon and that means offering high-quality offsets at the lowest possible price,” said Eric. “Price is very important to engaging millions of people.”
Jason disagrees somewhat. He says: “At this point there is no evidence that suggests to me that people are merely looking for a great deal on CO2 reductions. What I do see is that people are more and more willing to take action on climate change and that’s because people want to take action.”
Which is why Jason says Drive Neutral’s really focused on getting the word out about carbon offsets — an educational and marketing effort that takes moolah. “I think outreach efforts will help reach 2 million people faster than inexpensive CO2.”
Eric, however, said that Carbonfund too is focused on education: “Outreach is an important component of what we do and we do spend plenty on it. Word-of–mouth is best but we’ve also gotten nice write-ups in the Wall Street Journal, Time Magazine, New York Times, etc. which help keep costs down.”
A Google News search brings up 4 results for Drive Neutral, 8 results for Carbonfund. However, I’d heard about Drive Neutral long, long before I heard about Carbonfund.
So — My conclusion is that — I don’t know.
On the one hand, I like Carbonfund’s sales pitch of sorts: “We give people the most offsets for their dollar,” sez Eric. “In fact, the low cost of dealing with climate change is what tends to stun people most (“you mean it only costs $99/yr to offset my entire climate impactâ€) and it is the message that is needed to really spur people to action.”
On the other, I’m sorta concerned about promoting the idea that combating climate change is “cheap.” — I mean, offsets are cheap right now cuz, as Jason points out, “most people and businesses aren’t participating yet.” Meaning that in an ideal scenario with most people and businesses participating, prices for offsets would be higher — and those who really want to combat climate change will need to WANT prices to go higher. Sez Jason: “We invite our members to participate and help realize the true cost of greenhouse gas emissions.”
So — My decision for the moment is to stick with my Drive Neutral offset for my car. Among other things, Drive Neutral’s in San Francisco, and thus somewhat more “local” than the Maryland-based Carbonfund.
However, I’ll offset my flights with Carbonfund.
For more on these conundrums, and to check out comparisons of various other offsetting companies, read this post on grist.
And now that I’ve given myself a bit of a headache thinking ’bout this, I would encourage you, reader, to stress a little less than I did. After making sure that an offsetting company or nonprofit’s indeed a nice one, go ahead and offset without obsessing overly about finding the “best” offset…
Update, 1/22/07: What do you do when an offset announces itself via a v. thick envelope and 2 heavyweight notecards, all tied up in a ribbon that may or may not be recycleable?
Update, 8/10/07: Wow — Some of Carbonfund’s offsets may not offset anything at all. It looks like the bargain-priced offset company’s making good profits, but not keeping v. good tabs on ensuring its offsets are legitimate.
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