Carbon Offset, Carbon Reduction

 


Paying for carbon offsets is sometimes represented as an easy way for those with sufficient means to keep a clear conscience while maintaining a life style that produces high carbon emissions. This issue is discussed by Bourban and Broussois (2020) in their constructive criticism of the Effective Altruism movement and its search for the most effective ways to benefit others. The paper uses carbon offsets as an illustration of attitudes to individual responsibility. The authors cite a calculation showing that “an American’s annual emissions could be offset for a mere $300/year”, so that if “you earn enough money, you can donate some of it, without having to make any sacrifice, and get off the moral hook.” They also quote a suggestion that ‘rather than reducing your own greenhouse gas emissions, you pay for projects that reduce or avoid greenhouse gas emissions elsewhere’. This use of carbon offsets is contrasted with the view that personal integrity requires action to reduce one’s own carbon footprint: “Deep transformations in our habits and lifestyles are required, and financially contributing to offsetting and geoengineering projects will not help us get there.”

Assessment of individual carbon footprints can be made using one of the many calculators available, and the result will often show that changes in travel, diet, and consumption habits, together with improvement in home energy efficiency, would bring about substantial reduction in greenhouse gas emissions. What will also be clear is that the carbon footprint cannot be reduced to zero by these methods, and that any reductions made affect only future emissions, and do nothing to compensate for those of the past. Bourban and Broussois acknowledge that many “actions involving GHG emissions cannot be avoided” and that “in these cases, offsetting one’s emissions is indeed a good option.” They refer to “the complementarity of offsetting and reducing one’s emissions”, and part of their criticism of Effective Altruism is that it “tends to present the first measure as though it was an excuse to avoid implementing the second.” The complementarity of offsetting and the reduction of individual emissions will be explored below by comparing improvement to home energy efficiency with donation to carbon offset charities.

Increased domestic energy efficiency is a route open to house owners with adequate means who wish to reduce their carbon footprints. Suitable measures include improved insulation, low carbon heating methods, installation of solar PV panels and solar water heating. Some energy saving measures cost little or nothing, others can be very expensive. A set of figures on overall costs and saved carbon from house retrofits in the UK is given in the report “Retrofit factfile” from the Carbon Co-op (2016). The “actual figures from construction and post-completion monitoring” for five complete retrofits include overall cost and kg CO2 saved annually. To estimate the cost of the total CO2 saved, we have to supply a time frame, and an arbitrary but not altogether unrealistic figure of twenty years will be used here. Using this time frame, the overall costs per unit of CO2 saved lie in the range £591 to £798 per tonneCO2 saved.

The recommendations of some house efficiency surveys can allow the cost of carbon saving by each of several measures to be estimated, when the cost of each proposed action is accompanied by an estimate of its payback time along with the corresponding amount of carbon emission avoided annually. By assigning a time frame as above, a cost for the total carbon saved can be assigned to each measure, and compared with the cost of carbon offsetting. The range of payback times is wide, from a year or two for some measures to more than a hundred years for others; the payback times listed below are taken from a 2014 survey on a two bedroomed house in the UK. The figures which follow should be regarded as purely for illustration for a number of reasons: they refer to a single survey; UK carbon coefficients have changed significantly since 2014; material and installation costs have changed; and an arbitrary time frame is used.  

Simple actions such as not leaving electrical devices on standby cost nothing and so have zero payback time; energy saved by replacing an inefficient electric kettle should  return the cost in about 2 years; draught proofing can pay for itself in 7 to 8 years; replacing an old electric oven with a more efficient model returns the investment in about 50 years; replacing a single glazed outside door with a modern double glazed door has a payback time of 140 years; and the corresponding figure for additional above-floor insulation is nearly 200 years.

For measures with short payback times, financial self-interest alone is an adequate motivation, quite apart from the wish to mitigate climate change. For those measures with long payback times, some exceeding the life expectation of the householder, concern with climate change is likely to be the main consideration; if so, the prime figure of interest will be the expected reduction in carbon dioxide or equivalent emissions. The survey referred to above gave for each of the proposed measures a figure for its cost divided by the estimated amount of CO2 saved annually. Like payback times, these figures cover a very wide range. For simple secondary window glazing using polyester the figure was £0.32 per kg CO2 saved annually; the corresponding figure for replacing existing double glazing with new double glazing of a high specification was £12.13; that for replacing a washing machine by a new high efficiency model was £116. (The amount of embodied carbon does not seem to have been taken into account). Using a twenty year time frame the carbon dioxide saved by the polyester secondary glazing will have cost £16 per tonne (i.e. 1000 X £0.32/20); the new double glazing, £607 per tonne; and the washing machine £5800 per tonne.

Since spending on those household efficiency measures with very long payback times brings little financial reward, and is likely to be motivated by ethical and environmental considerations, it is similar in some ways to making a charitable donation. There are many charity projects which offer some form of carbon offset in response to donations, and in some cases a quantitative comparison can be made between the two approaches to carbon saving. There are of course important differences, particularly regarding confidence; money spent on home efficiency improvement buys tangible changes the results of which can be measured over time by the purchaser, whereas the fulfilment of plans for CO2 reduction made by a charity will not generally be verifiable by the purchaser, and may be subject to disruptive influences beyond the control of the charity.

In order to convince someone whose inclination is to ‘own’ the problem of climate change by actions such as home efficiency improvement that some of his or her money could be better spent on carbon offset donations, evidence would be needed on at least two grounds; first that the organisations offering the offsets are trustworthy and effective, and second that the quantitative comparison is compelling. On the first point, some of the uncertainty attached to philanthropic giving can be reduced by noting the recommendations of organisations which survey the charitable sector and list those which they consider to have most impact. On the second point, the high cost of saving CO2 attached to some elements of home energy efficiency suggest that it is possible to tilt the complementarity referred to by Bourban & Broussois too far in the direction of reducing one’s own emissions, and that beyond a certain point money would be better used on offsetting them. The figures supplied by some offsetting organisations seem to confirm this suggestion, and details follow.

Giving Green (n.d.) is an organisation which offers “an evidence-based guide to help donors and volunteers fight climate change.” It is largely focussed on America and identifies two current key areas: “Carbon Offsets, which seek to cause immediate, verifiable decreases of greenhouse gases (GHGs) in the atmosphere; and US Policy Change, which aims to change US policy to drive considerable reductions in emissions”. Efforts to change US policy, though no doubt important, cannot be evaluated in terms of the cost of carbon saved; however the three following carbon offset projects recommended by Giving Green do provide figures of this kind.

Climeworks (2020) is a Switzerland-based company that removes CO2 from the atmosphere at fourteen facilities using Direct Air Carbon Capture and Sequestration (DACS).  The captured CO2 is then turned into “solid material deep underground”. While donors may therefore feel a high degree of certainty that their gifts do secure carbon sequestration, the cost is high, at about £880 per tonne of CO2; donations do however also support the development of DACS technology.

Tradewater (n.d.) sets out “to fight climate change by collecting and destroying the most powerful greenhouse gases in the world.” These are refrigerants and “other gases with warming potential up to 10,000 times that of carbon dioxide.” The price of CO2 equivalent prevented from reaching the atmosphere is about £11 per tonne, and Giving Green regards the organisation as offering “one of the most attractive combinations of price and certainty.”

BURN (n.d.) “makes and distributes fuel-efficient stoves in Kenya. Their impact on fuel usage (and therefore GHG emissions) was validated by a recent randomized controlled trial … which sets it apart from the mixed results of other cookstove providers. Additionally, BURN stove users see large reductions in expenditure on fuel, leading to more money for the family.” The price of offsetting a tonne of CO2 is estimated at between £7 and £8.

The range of offsetting costs represented by these three organisations is thus from about £7 to £880 per tonne of CO2; the range of average overall costs from the retrofit study on a 20 year time frame is from £591 to £798 per tonneCO2 saved; and the range of costs of individual measures from a home efficiency survey on the same time basis is from about £16 to £5800 per tonne CO2. These figures should all be treated as approximate and illustrative; the only recommendation made here is that there is a case for considering whether money intended for those home efficiency improvement measures which have very high costs per unit of CO2 saved might not be better used to fund charity projects which claim to save CO2 much more cheaply. Such charities may also be relevant in addressing the environmental damage done by an individual’s past carbon emissions, and the ongoing residual greenhouse gas emissions which cannot be entirely eliminated by changes in lifestyle.

 

References

Bourban, M., and Broussois, L. (2020).  “The Most Good We Can Do or the Best Person We Can Be?” Ethics, Policy & Environment

DOI: 10.1080/21550085.2020.1848175

Viewed 19th Jan 2021:

https://www.academia.edu/26828788/The_Most_Good_We_Can_Do_or_The_Best_Person_We_Can_Be

BURN (n.d.).

Viewed 19th Jan 2021:

https://burnstoves.com

Carbon Co-op (2016), “Retrofit factfile”, URBED, Carbon Co-op

Viewed 20th Jan 2021:

http://urbed.coop/sites/default/files/2016%20URBED%20Tyndall%20The%20Retrofit%20factfile%20-%20facts%20and%20publications.pdf

Climeworks (2020).

Viewed 19th Jan 2021:

https://www.climeworks.com/

Effective Altruism (n.d.).

Viewed 19th Jan 2021:

https://www.effectivealtruism.org    

Giving Green (n.d).  

Viewed 19th Jan 2021:

https://www.givinggreen.earth/

Tradewater (n.d). 

Viewed 19th Jan 2021:

https://tradewater.us

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