Tuesday, July 6, 2010

Local carbon offsets...

Let’s get one thing straight. I don’t like carbon offsets. I think that they overshadow the real problems we have to deal with by allowing us to buy our way out of it. Feel guilty about driving your Escalade? Just pay someone to plant some trees. Phew, that guilt was getting a little heavy.

But what I will concede is that they are better than nothing. If Johnny is going to drive his Escalade no matter what, it’s preferable that he does something to offset the drive as opposed to nothing at all. That being said, involuntary programs like a carbon tax or cap-and-trade system might hit Johnny closer to the source so he wouldn’t drive his Escalade as much.

Now, some carbon offset programs are better than others. I won’t go into detail about all the drawbacks and general silliness of the industry this time, but you can find my views on it here. Quite simply, I think that national and international carbon offset programs are fraught with dangers, most notably the arbitrary – and profit-raising – price-setting by offset companies and the occasional ineffectiveness of the actual offset project, disappointingly common with tree planting.

I am currently involved in a project exploring the feasibility of different carbon offset programs that would operate locally in Peterborough and the Kawarthas. Despite all I hold against offsets in general, local offset programs do have a certain appeal.

Instead of putting your money towards a project that could be on the other side of the world, you could instead put your money towards a project you could see every day, be run by people you know, or that even yourself are involved with. Your money could go towards a community-owned renewable energy project, the protection of natural land you think is important or even educational projects.

Such programs do face many barriers. There is only so much money that can come from a local market, especially in areas that are not densely populated. And the added costs of financing projects without high economies of scale – and in some cases, without profit in mind – might prevent financial viability. The impending arrival of international carbon trading markets might also prevent some programs from getting off the ground, as communities wait for regulations and standards to be set so their projects would comply. Local projects would share the arbitrary nature of price-to-carbon valuation, but people may be less concerned about precise pricing with local projects they have a direct connection with, especially those of the non-profit type.

Carbon offsets bother me, but they’re better than nothing. And certainly better than nothing when done on the local level with local interests and benefits to the community in mind.

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