How much does it cost to offset a ton of carbon?

It varies according to the type of carbon offseting funded (e.g. solar, wind, tree planting). The cost of alternative energy sources is still highly affected by consumer demand. As the demand for alternatives increases, the supply will increase to meet the demand and and the cost of production (i.e. producing the panels for solar, the turbines for wind) per unit will decrease. As it is now, some alternative energy sources are more expensive to provide than others. The cost of offsets may vary based on the energy sources the offsets support.

How do you determine the cost of an offset?

To determine the cost of offsetting a ton of carbon, you must know:

1) How much energy is produced for each ton of carbon emitted, and

2) How much it costs to produce the same amount of energy through an alternative energy source which does not emit carbon.*

*This is why offset costs vary, as the cost of installing a wind turbine is different than the cost of installing solar panels, even when looked at in proportion to the amount of energy generated.

What is the price/ton for this project?

Solar panels are to be installed on the roof of a new dormitory on the AIES campus. Preliminary data on the potential electrical output of the panels has been collected and used to establish the price/ ton of CO2 offset.

• Each panel produces electrical output in the amount of 304.2 KWh per year.
• Since each solar panel has a lifespan of twenty years, each solar panel is expected to produce a total of 6084 KWh.
• The emissions coefficient used to calculate the carbon footprint of Temple Anshe Hesed was used to determine the amount of carbon dioxide which would have been emitted if 6084 KWh were produced through conventional methods:
  • (1.26 pounds CO2 / KWh produced) * 6084 KWh = 7665.84 pounds CO2
• Thus, the purchase of one solar panel offsets the emissions of 7665.84 pounds of CO2 or approximately 3.8 tons of CO2.
• Solar panels are designed to require no maintenance over the course of their use, so the only cost associated with them is the cost of installation. The cost of installation for each panel is $650.
• Retrieving the cost per ton of CO2 simply requires dividing the cost of installing one solar panel by the tons of CO2 it will produce over its lifetime.
  • $650 / 7.6 tons of CO2 = $170 per ton of CO2 [sound expensive? Click HERE for more information]

What is the cost of offsetting Temple Anshe Hesed's carbon footprint?

With a carbon footprint of 36.5 tons of CO2 in 2007, at an offset cost of $85.5 per ton of CO2, it would cost Temple Anshe Hesed $6,205 to offset their carbon footprint for 2007.

This figure is significantly higher than that which was originally expected by those involved in the planning of this project. It is important to point out in addition that this is an example of the amount needed to offset a carbon footprint for one year. A similar figure could be expected the following year, and so on. An extremely valuable question is raised here: is this the most effective and environmentally responsible way for Temple Anshe Hesed to reduce their carbon footprint?

My recommendations for Temple Anshe Hesed are the following:
First, take advantage of this unique opportunity and offset a portion of the carbon footprint through the purchase of solar panels for the Arava Institute. This program has an array of benefits for the Temple, the Arava Institute and the environment:

• It will continue the tradition of cooperation between the Temple and the Arava Institute in an innovative way.
• It will allow both groups to become more aware of the global scale of the environment and repercussions of personal actions.
• It will contribute to the expansion of solar energy technology.
• It will reduce energy consumption on the campus of the Arava Institute on Kibbutz Ketura.

Second, rather than offset the entire carbon footprint by purchasing solar panels for the Arava Institute, invest a portion of the funds which would have been spent on panels to improving energy efficiency on the grounds of Temple Anshe Hesed in order to reduce their carbon footprint in a tangible way. This will have several significant impacts:

• It is a more tangible and lasting way of reducing the Temple's carbon footprint. By investing in energy efficiency this year, the carbon footprint of this and all subsequent years can be reduced, leading to a decrease in the total amount of money needed to reduce the subsequently lower carbon footprint in future years.
• It will have a more local impact on the region and its environment. By investing in energy efficiency locally, a more obvious standard for environmental action in the Erie region is set than if money is invested in Israel alone.
• By combining a program of investment in solar energy on the Arava Institute's campus and reducing carbon emissions in Erie, the environment is able to achieve real benefits in both regions, rather than if investment is made in Israel alone

I recently checked my carbon footprint on (TerraPass, Native Energy, etc) and it said I could purchase offsets for approximately $10/ ton of CO2. Why is that price so different than the price of this project?

Many on-line companies do not publish information on how they come by their prices, but there is literature on the subject as the disparity and lack of regulation in carbon offset pricing has sparked controversy. Research into this situation has yielded the following possible explanations for this disparity:

1) The carbon offset market is unregulated. There are some oversight bodies, but they are largely ineffective since regulation is voluntary.

2) There is concern that companies may be double counting offsets, selling the same "offset" twice. This artificially drives down the price of each offset as several individuals are then paying for the same offset price and it is only providing the offset for one.

3) There are concerns over the additionality of projects. A carbon credit offset only works and truly offsets an individual/ groups carbon emissions if the project would not have occurred without the purchase of the offset (i.e. AIES needs the money to purchase solar panels, without the money there would be no solar panels). If a company is merely collecting funds to help defray the costs of a previously established program, or to help meet government regulations, then the carbon offsets purchased by consumers are not impacting net carbon emissions.

4) The cost of offsetting varies based on the method used. Projects involving alternative energy sources (i.e. wind, solar) may vary price based on the economics involved in using that energy source.

5) Many projects are heavily based on tree planting to sequester carbon, rather than using alternative energy sources. This is the cheapest method of offsetting carbon, but it is also the least effective. There is no way to know that the tree does in fact exist and will continue to exist without threat of logging or forest fire for the number of years it will take to sequester the amount of carbon for which it was purchased to offset. In addition, if the tree dies in the forest, the carbon it sequestered is released back into the atmosphere as it decays. The only way to ensure that the carbon of the tree remains out of the atmosphere is to harvest the tree and turn it into a useful household item (i.e. furniture) where the carbon will remain "locked up".

Clean Air Cool Planet's Consumer's Guide provides more information about actions consumers can take to ensure the validity of the carbon offset program they support.

The bottom line is that, for this project, you know exactly where your money is going, what it is funding and how the costs were calculated.

Washington D.C.'s Energy Department put out a Green Faith Guide, which provides excellent coverage of information and programming opportunities for fifteen topics related to congregational environmental impact.

Footprint Image: Lake District Tours