Michael Willoughby explores the theory and practice behind offsetting. And he discovers wildly differing costs for a return flight to Malaga from the price of a latte to a hardback book.

Those of us jetting off on our summer hols might be hoping to allay some guilt by purchasing carbon offsetting from airlines or other outside agencies. The process, whereby consumers 鈥榩urchase鈥 carbon expended through our energy-hungry lifestyles goes towards schemes such as reforestation and purchasing low carbon technology for people in the developing world, is the closest we have to a consumer carbon tax.

And the market is expanding wildly. New Carbon Finance, an analyst firm, said the amount paid for voluntary contributions in 2007 was $331m, up from just $97m a year before.

Ethical?

There鈥檚 still widespread discussion about the viability of the process. In February, the government announced the introduction of a voluntary standard for offset schemes in response to calls that the schemes be regulated.

Some still aren鈥檛 convinced. Friends of the Earth, along with a number of other organisations, says it is becoming concerned that the practice is being used as a smoke-screen to ward off legislation and delay the urgent action needed to cut emissions and develop alternative low-carbon solutions.

It says: 鈥淥ffsets can even encourage businesses and people to continue with (or even increase) unnecessary polluting activities, promoting the mindset 'I鈥檝e offset so it鈥檚 OK to fly', 'I鈥檝e offset so it鈥檚 alright to drive to work' etc.鈥

Offsets can even encourage businesses and people to continue with (or even increase) unnecessary polluting activities, promoting the mindset 'I鈥檝e offset so it鈥檚 OK to fly'

Friends of the Earth

But clearly, properly regulated, offsetting is better than, say, building a coal-fired power station in Kent, so we thought we would look at a few of the options offered to us when we purchased a return fare from Gatwick to Malaga, a 3,300km round trip鈥

Offset 1

Best-known offset company, Climate Care gives a straight 拢3.30 figure for the journey. Their portfolio of funding recipients includes wind power projects in China, efficient cooking stoves in Uganda and the controversial treadle pumps in India, which the Times said was causing 鈥榚co-enslavement.鈥 They don鈥檛 fancy reforestation since single-species planting can cause eco-system meltdown.

Offset 2

The EasyJet tariff, a similar 拢3.45 goes, they say, only to UN-certified emissions reductions projects. The airline slammed 鈥榮nake-oil salesmen鈥 in the trade back in 2007, pointing out that up to 30% of the amount could be taken out for 鈥榓dministrative costs. They don鈥檛 use a middleman.

Offset 3

BA, however, use Morgan Stanley. What is soon to be 鈥楲a l铆nea a茅rea preferida en el mundo,鈥 has slapped a 拢8 tariff on our flight.

Offset 4

Things get a bit complicated with The Carbon Neutral Company. Their selection of different products reminds one of the essentially charitable nature of the enterprise. Their bargain 鈥榝utures portfolio鈥 invests in 鈥榖ringing about new technologies,鈥 such as a wind farm in Turkey. Perhaps the lower price can be accounted for by remembering that projects are far cheaper to get off the ground in developing countries. If you are really feeling cheap, though, for the price of a latte, 拢1.80, you can help get two China projects off the ground. These are a hydroelectric project 鈥 worrying for those of us who know about the Chinese regime鈥檚 troubled relationship to its important rivers 鈥 and a more reassuring waste-recovery project, also in China. But why pay less? This isn鈥檛 the January sales, people!

Investment in these types of technologies surely brings down installation and production costs (at least in the longer term); drives skills up immediately and ensures there鈥檚 continued industry and entrepreneurial interest in the sector

Offset 5

CO2 Balance.com is geared towards the corporate customer and, as such, doesn鈥檛 offer a calculator down to our piddly Spanish holiday level. But for 拢15 you can offset carbon emissions up to two tonnes. Rather satisfyingly you also get to click a button to choose your project. But is this wise? Is the African Energy Efficiency project always going to lose out to the plantation of a woodland in Cumbria?

Offset 6

CarbonFootprint.com takes the gift aid approach. It will calculate your carbon like the others and offer you a no-frills 拢3.51 into a clean energy fund supporting carbon reduction projects around the world. But if you give 拢7 (not much in comparison with the minimum 拢100 you鈥檙e spending on the flight) you can help a worthwhile replanting of native broadleaved trees in the Rift Valley, Kenya. Or you can spend a wee bit more (拢11.75) planting trees here in the UK. Of course, we are getting into the realm of the arbitrary here, but why scrimp? It鈥檚 voluntary anyway.

Offset 7

The Clean Planet Trust funds projects in the Clean Development Mechanism (CDM) whereby western companies fund carbon mitigating projects in the developing world. It鈥檚 the most expensive 鈥榗alculated鈥 amount at 拢12.08, but when you read the list of projects - a crop waste power plant in India and renewable energy and forest planting in Brazil 鈥 it would take a churlish person to object to carbon offsetting in practice.

Is it worth it?

While FoE and Greenpeace are right 鈥 of course we need renewable power yesterday 鈥 perhaps they have missed a trick. Investment in these types of technologies surely brings down installation and production costs (at least in the longer term); drives skills up immediately and ensures there鈥檚 continued industry and entrepreneurial interest in the sector. And 鈥 if one takes the long view - that can only make low-to-zero carbon technologies more viable for the rest of the world.