Frequently Asked Questions

Who owns the land on which the woodland is planted?

All woodland planting land is owned by co2balance. We absolutely do not plant on land owned by third parties. We believe that planting on land owned by third parties or partners (as most offset schemes seem to do) is a particularly bad idea. There can be no certainty about the long-term future of a forestry-based offset project if the planting organization does not even own the land. Carbon offset through forestry is based on trees reaching maturity (~70-100 years), which is why it is so important to maintain control over the land. If the trees do not reach maturity then the offset agreement, which is paid for in full by you, up front, is only partly honoured.

Once planting is complete, the land is transferred to a charitable organisation associated with co2balance to ensure the long-term management of the woodland. Whatever offset scheme you eventually opt for, do not accept a forestry-based project where the offset organization does not own the land. Your investment could well be worthless. No other forestry-based offset projects give this undertaking.'

Can I visit the woodlands?

Yes. Offset clients are provided with a certificate specifying the location of the woodland planting together with details of how to find it.

What does ‘additionality’ mean?

We only invest in projects that we control, whether that’s energy efficiency or forestry. We don’t subcontract to other organisations. Crucially, we do not invest in projects that are already completed. Some carbon offset organisations (including some of the biggest) will buy ‘carbon credits’ in existing windfarms or woodlands. It is pointless having your offset investment placed in a project that has already been completed as the benefit has already accrued and your funding makes no difference.

Why do you invest in energy efficiency projects in the developing world? 

In order for our energy efficiency projects to be considered additional, we must identify communities to receive our energy efficient equipment that would not otherwise be able to afford it. There has been some ludicrous criticism of such projects along the lines that it would be better to fund other aspects of life in the developing world such as education and healthcare. This completely misses the point. There are plenty of organisations seeking to provide funding and expertise to address these areas and we have no intention of competing with them. co2balance exists solely to help people address their carbon emissions. If, at the same time, we can provide energy efficient equipment to the developing world that through its use, saves the user money and stops the user having to pay for the equipment in the first place, then that can only be of benefit.

How much land does co2balance own?

We currently own and manage 77 acres (28.3 hectares) in the UK and 6 acres (2.43 hectares).   

How  do you audit your projects? 

Our projects are externally audited by a range of third party accreditation bodies.  In addition, co2blance has made a commitment that all offset projects on offer by the end of 2008 will have been accredited through either the Voluntary Carbon Standard (VCS) or the Voluntary Gold Standard.

Are offsets from the regulated or voluntary market?

Our offsets are predominantly from the voluntary market.  However for some time, co2balance has offered its clients the opportunity to offset via Certified Emission Reductions (CERs) and European Union emissions Allowances (EUA).  Almost without exception, our commercial clients are not interested in CER projects even those who are already active in this market by virtue of the fact that they have obligations under the EU Emissions Trading Schemes (ETS).  This is because of recognition that CER/EUA generating projects do not generate the range of co-benefits that typically accrue from voluntary offset projects.  CER/EUA-generating projects tend to be industrial in scale and nature and clients are not interested in helping, for example, an Indian steelworks reduce its emissions or a Cambodian landfill site to flare-off its gas.  Instead our clients are normally keen to invest in projects that improve the living standards of some of the poorest people on earth, in addition to offsetting emissions, and these benefits are not generally found in CER/EUA projects.

Do your offsets result from specific projects?

Yes, we have a number of CarbonZero projects ranging from UK/European afforestation to projects that we are establishing and expanding in Kenya and other parts of East Africa, which see kerosene lanterns converted to run on solar energy and incandescent bulbs replaced with lower energy versions.  We are also looking to set up projects that convert manure to gas for cooking in Mara villages in Kenya.  As well as saving on carbon emissions, these projects all have great spin-off benefits; the kerosene lantern project saves the user money and removes exposure to respiratory illness and fire risk; the biogas project gives villagers a clean source of fuel, reducing exposure to respiratory illness and removes the requirement to fell trees for fire wood. You can choose which project on which to spend your offset balance.

 
Please also note that we only invest in projects that we have initiated and continue to manage ourselves so we can ensure that the promised carbon savings actually occur.  We do not contract out this essential element by 'buying in' carbon from third party projects over which we have no control.

 

Do you use an objective standard to ensure the additionality and quality of the offsets you sell?

You would receive certification at the end of the year from an independent accreditation body to verify that the actions that you have funded have actually taken place.  Our additionality test is the highest there is.  As well as the usual criteria, we also have a rule that at least 50% of the total project capital must come from carbon funding.  Credits from the regulated market often come from projects where a tiny percentage of the overall project capital has been generated by carbon funding using the pump-priming argument that without that funding, the project would not have occurred.  We do not find this a credible approach, hence the 50% rule.

All projects are backed by a Project Design Document (PDD) which sets out the project boundary, baseline, purpose, benefits, and projected savings.  Verification of the projects goals is undertaken as the project progresses with reports produced by independent bodies such as DNV.

 

How do you demonstrate that the projects in your portfolio would not have happened without the Green House Gas (GHG) offset market?

See above.  In addition to the funding test, we also undertake research to ensure that the type of project that we are proposing is not likely to be funded through any other method, i.e. state intervention or private finance.

Have your offsets been validated against a third-party standard by a credible source?

All our methods are validated by Bournemouth University.  New Project Design Development (PDD)s are currently being validated by a range of independent verification bodies.

Do you sell offsets that will actually accrue in the future? If so, how long into the future, and can you explain why you need to forward sell the offsets?

In our view, it is pointless investing in a project whose carbon saving has already occurred; its benefit is already in place, with or without the funding of the client.  It is much more difficult to demonstrate additionality where the project has already occurred.  It is much better that the clients’ funding is used, after it is received in new project activity.  A clear link between the receipt of funds and additional (new) project activity can therefore be drawn.  Combined with the 50% rule this represents a very high additionality test.  The typical carbon payback period for our energy efficiency and renewable energy projects is 4 years.  Afforestation is 50 years, which is why we recommend that no more than 25% of a clients’ total budget is allocated to afforestation projects.

 

Can you demonstrate that your offsets are not sold to multiple buyers?

 We operate the CarbonZero Registry.  This is a register organised on the basis of each offset project and the tonnes of CO₂ saving that it generates.  Each client is allocated the appropriate tonnage in the register, which is available to all clients.  We never sell more than 90% of the total projected savings of a project.  This enables us to build up a pool of unallocated carbon savings, which form the contingency reserve.  In the event that a project underperforms (this has yet to happen as we are conservative in our forecasts) the underperformance is made up from this pool.

What are you doing to educate your buyers about global warming and the need for global warming policy?

We have been working with communities, for example an area outside Stirling in Scotland is currently looking at becoming a CarbonZero community and we are supporting the residents with information about global warming.  We have also set up  http://www.carbonzeroplanet.org which provides information about the impact of global warming, as does our website www.co2balance.com

We provide consultancy services to clients advising where carbon savings can be made.  We also write climate change strategies for clients, often helping to implement those strategies through techniques such as the forming of green teams.

 

Can you provide a breakdown of allocation of offset funding? For example, what percentage goes to the project, admin, regulation etc?

Typically, the projects will receive about 70% of the offset funds.  A further percentage is spent on education (we work with the Scouts for example).  The rest is split between operating costs and a small margin.

Is your company run as a charitable entity or a business?

The company was initially set up by people would had a genuine concern about the impact of climate change.  What started out as a hobby grew and to increase the amount of good carried out they had to set a company up and run it as a company.

We are a limited company but it is important to note that the majority of our profitable work comprises consultancy services, not the offsetting part of what we do.