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How Offsetting Works

Greenhouse Gases & Climate Change 101

Scientists and environmentalists often speak in environmental jargon, wrongly assuming people are going to know what they mean. The truth is, most of us have some knowledge about the issue, but not a firm grasp. This section is intended to bring it down to a fundamental level.


There are gases in our atmosphere that keep us warm. Without them, the sun's rays would hit the earth and the heat would just dissipate, causing our temperatures to be on average 60 degrees F cooler than they are. This natural process of atmospheric gases retaining the sun's heat is called the greenhouse effect. Greenhouses gasses are naturally occurring and we need them. These gases are water vapor, carbon dioxide, methane, nitrous oxide, and a few others; our main concern is carbon dioxide. That is because we are generating a bunch of excess CO2 through the burning of fossil fuels.


If we did not burn carbon-based fuel, we would be balanced. Meaning, the amount of carbon dioxide emitted from natural processes (like breathing) would be in natural check with the environment, and the greenhouse gases would be in harmony with the life and activity on Earth. Every era, through the course of history, has had this natural balance Ð even the extreme ice ages. Enter the concept of digging up yesterdayÕs organic matter to heat our homes and fuel our cars. Suddenly, we are reintroducing carbon that has been buried in the annals of time. We are digging up the past and putting it in the air. Burning organic material (oil, coal, gas) causes the carbon to combust, creating carbon dioxide. This tips the Earth's natural balance.


Currently, humans are responsible for approximately 7% of the carbon dioxide in the atmosphere (over and above what would naturally occur). DoesnÕt sound like much, but it is huge when you think about how delicate life is. The increased CO2 is changing weather patterns, destroying habitats, and will ultimately change our world significantly. Hunters understand how populations of prey will overrun an area when there are no natural predators. Anyone who has spent time outdoors understands there is a natural balance to our world. Our production of CO2 has outpaced nature's ability to keep our environment in check.


It is unrealistic for the changes to occur overnight. We are not all in a position to drive less or buy a new hybrid. That doesnÕt mean we shouldn't make attempts at lessening our impacts. One way to do your part is to offset your footprint, and tip the balance back in the Earth's favor.

It's Pollution

Let's just say you are one of the few remaining people who doesn't believe that humans are impacting the climate in a negative manner. So be it. Regardless of whether you believe the science or not, you have to admit the burning of carbon based fuel causes pollution. Offsetting will fund projects that take pollution out of the air, and promote new, clean energy.

Offsetting

What does it mean?

An offset has traditionally represented a metric ton of carbon dioxide. The typical American generates around 22 metric tons of CO2 in a year. Organizations, such as the Chicago Climate Exchange have worked to establish standards for capturing carbon, and promoting green energies that replace carbon-based energy, creating a counter to carbon emitting electricity. This where we get the terminology you will see such as "carbon neutral," "carbon balanced," "Carbon Zero."


Here's an example:1 metric ton of carbon generates 100 kilowatt hours of electricity. 2 hours of wind energy equals 100 kilowatt hours of electricity. The wind, because it is clean, and generates the same amount of electricity, qualifies to offset one metric ton of carbon. People who want to make a difference by promoting either carbon capture or clean energy, typically calculate their carbon footprint to determine a baseline for buying. They then purchase "offsets" that fund such projects. In this example, if one were to purchase an offset, the money would go to fund the wind farm.

How it works?

Offset Alliance is in partnership with Verus Carbon Neutral who sits on the Chicago Climate Exchange. Every project that is funded through OA has met the rigorous standards of qualifying as an offset project through the CCX. The CCX is the de facto voluntary cap and trade market here in the United States. The same company also holds the European Climate Exchange, the Tianjin Climate Exchange and the Montreal Climate Exchange.


When you purchase offsets, we register that purchase with the (CCX) exchange. Your offset number is stored with OA and upon request we provide you access to the transactional information from the CCX. Every offset purchased is retired; because our cause is to reduce over all carbon emissions, we do not hold offsets for future trading. By offsetting, you become an "ally of the environment," working to tip the balance back in the Earth's favor. Your offsets will ultimately go to putting affordable green technologies in the hands of consumers. You know this because your offset purchase went to a CCX approved project, the transaction was documented, and it is official.


What is Voluntary Cap and Trade?

The voluntary cap and trade markets are not to be confused with the government mandated cap and trade being discussed in the news. The voluntary markets do not fund government initiatives, rather, the money goes directly to the provider of the progress.


It works like this: Companies, such as Ford, agree to reduce their carbon footprint over a period of time. For the sake of an easy example, letÕs say Ford agrees to reduce its footprint by 1% a year. If Ford is successful in doing this, and actually reduce it by 2%, they get 1% as a credit to be sold on the market. If Ford is unsuccessful, it must buy the equivalent in offsets from another company who has met and exceeded their goal and/or a green initiative.

More About Offset Alliance

Offset Alliance works with individuals and brands to establish and offset their carbon footprints. We improve their environmental standing by purchasing and retiring offsets for select projects on the Chicago Climate Exchange.

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