In the name of saving our planet, an invisible, untouchable item has shown up on stock markets — carbon credits. Simply put, people buy carbon credits, also known as carbon offsets, to compensate for the effects of all greenhouse gases generated by their energy-intensive businesses and lifestyles. The aim is to achieve carbon neutrality; to help mitigate the warming of our planet and its severe consequences.
As public awareness of global warming and climate change spreads, carbon offsets are growing in appeal, particularly for people in the developed world. At first glance, carbon trading looks like an easy solution to those wanting to green-rinse their operations - and their public image. Consultants and companies have mushroomed around the world, eager to help with green audits and to offer advice on viable offset methods. It’s become a bit the like the days of the Wild West. This time, however, the hunt isn’t for shiny gold, but for intangible carbon. Yet, the value of this offset market ran to about USD135 billion in 2009 alone.
What does this all have to do with the aviation industry, especially executive aviation? The unfortunate thing is that aviation is a relatively easy target for ‘greenies’. Issue is taken with the amount of fuel that flying consumes, vis-a-vis the relatively small privileged group of people who can enjoy it. Often overlooked are important facts, such as those presented in a 2009 report by IPCC, the Intergovernmental Panel on Climate Change in Geneva. It corroborates similar findings by scientists that the total aviation industry- commercial, military, cargo, scientific and executive — contributes just 5 per cent of human-generated greenhouse gases globally. Livestock industries, mainly cattle, contribute significantly more (18 per cent)- more than cars, another target of the green lobby.
Keen not to be seen as a wasteful, elitist polluter, the international aviation industry has set an ambitious target to become carbon neutral by 2020. The industry wants to be “a role model for others”, said IATA Director-General Giovanni Bisignani at last year’s World Transport Summit. He also pointed out that the industry cannot do it alone, and that governments have to meet its efforts. Part of that solution lies in carbon offsets.
There are two carbon offset markets. The compliance market deals with governments, companies and entities that must offset for regulatory reasons as agreed under the Kyoto Protocol. The smaller market is the voluntary market, which includes individuals seeking to alleviate emissions related to their lifestyle; in transport, for example. Those who fly commercially are likely familiar with an up-sell some airlines have on their tickets for a carbon trade-off. But if private aviation is your preferred mode of flight, and you find your conscience pricking, or your children quizzing you about it, you can buy offsets too.
First, determine your carbon footprint to know how much you need to offset. Carbon footprint calculators are available on the Internet, as are organisations selling offsets. Offsets often come in the form of support for green initiatives, such as wind and solar farms, biomass energy production and tree-planting schemes. Some are more credible than others, some positively outlandish. We will look at them in more detail in the next issues.
Not everyone agrees that carbon offsets will stop global warming. Its opponents don’t see it significantly reducing our dependence on fossil fuels, but as a way to buy indulgence and peace of mind. Its proponents argue that offsets allow individuals to mitigate their carbon output and help them contribute to the solution. The jury is out.
