2. Carbon Credits – Selling of Indulgences or step towards sustainability? EEA Staff Seminar 5 September 2006, 10 – 11.30 h Kongens Nytorv 28 Room 28.1.1

3. Offsetting climate effects of flights on behalf of the EEA Next steps for implementing a carbon credit scheme in the EEA EMAS travel and accomodation project Burkhard Huckestein

4. List of carbon credit purchasers includes: Rockbands like the Rolling Stones, Coldplay etc. Rockbands like the Rolling Stones, Coldplay etc. Sports events like the FIFA Worldcup 2006 Sports events like the FIFA Worldcup 2006 World Bank and some private banks World Bank and some private banks Big car and oil companies Big car and oil companies Corporate titans like Motorola, DuPont etc. Corporate titans like Motorola, DuPont etc. Paramount Pictures Paramount Pictures Film stars, artists, politicians Film stars, artists, politicians Policy like British Government Policy like British Government What do Rock n Roll, football, and big business have in common?

5. they are environmentally useful if … the provider of carbon credits is reliable the provider of carbon credits is reliable the offsetting projects are useful the offsetting projects are useful the climate impacts are properly calculated the climate impacts are properly calculated there is an external monitoring of projects there is an external monitoring of projects...... Carbon credits are a marketing gimmick, but …

6. This carbon offset scheme for travellers has really taken off!

7. Offsetting strategies of carbon credit providers Afforestation Afforestation Eco-efficiency Eco-efficiency Renewable energy Renewable energy Emission rights (EU ETS) Emission rights (EU ETS) Clean Development Mechanism Clean Development Mechanism Strategy mix Strategy mix......

8. Designing a carbon credit scheme for the EEA EEA Offsetting strategy Climate impact of EEAs travelling

9. 1. Evaluate options for buying carbon credits 2. Identify carbon credit providers 3. Defining requirements for carbon credit schemes 4. Call for tender among carbon credit providers 5. Calculate climate effects of all EEA flights in 2006 6. Buy carbon offsets 7. Communicate the EEA carbon credit policy to encourage followers Next steps for the EMAS travel team and the EEA

10. Buying allowances from the EU ETS Buying allowances from the EU ETS + EU bodies should apply to EU schemes - No environmental impact due to too many allowances in the first ETS trading period (until 2007) Buying carbon credits from a provider Buying carbon credits from a provider + high probability of environmental benefits - administrative effort (call for tender, etc.) 1.Evaluate options for buying carbon credits Conclusion: For 2006 and 2007 buying carbon credits is the better option, if provider meet environmental and administrative requirements

11. List of more than 20 provider of carbon offsets Atmosfair (Germany) Atmosfair (Germany) Climate Care (UK) Climate Care (UK) Carbon Fund Carbon Fund Climate Friendly Climate Friendly Greenseat Greenseat My Climate My Climate The Carbon Neutral Company The Carbon Neutral Company CO 2 Balance CO 2 Balance...... 2.Identify carbon credit providers

12. Environmental criteria Proper description of offsetting projects Proper description of offsetting projects Additionality and perpetuality of carbon reduction Additionality and perpetuality of carbon reduction Transparent scientific assessment of impacts Transparent scientific assessment of impacts Effective implementation and monitoring Effective implementation and monitoring Administrative criteria Transparent accounting (e.g. Annual Financial statements)Transparent accounting (e.g. Annual Financial statements) Low share of overhead costsLow share of overhead costs Representative steering committee (incl. NGOs)Representative steering committee (incl. NGOs) Effective administration (incl. customers relation and marketing)Effective administration (incl. customers relation and marketing) 3.Defining requirements for carbon credit providers

13. 4.Call for tender among carbon credit providers Are the CO 2 -reductions of offsetting projects evaluated and monitored (e.g. CBA)? Are the CO 2 -reductions of offsetting projects evaluated and monitored (e.g. CBA)? Are climate impacts beyond CO 2 taken into account? Are climate impacts beyond CO 2 taken into account? Are there environmental side effects? Are there environmental side effects? Are there social and economic side effects? Are there social and economic side effects? Are there enough projects? Are there enough projects? Where does the CO 2 -reduction occure (within or outside EU)? Where does the CO 2 -reduction occure (within or outside EU)? What is the price per CO 2 -equivalent? What is the price per CO 2 -equivalent?

14. 5.Calculate climate effects of all EEA flights in 2006 Get a list of city pairs for flights by our travel agency Get a list of city pairs for flights by our travel agency Calculate CO 2 -emissions by average fuel consumption of aeroplanes Calculate CO 2 -emissions by average fuel consumption of aeroplanes Model average climate contribution beyond CO 2 (e.g. Radiative forcing) Model average climate contribution beyond CO 2 (e.g. Radiative forcing) 6.Buy carbon offsets

15. 7.Communicate the EEA carbon credit policy Communicate our carbon credit scheme Communicate our carbon credit scheme Make transparent our selection process Make transparent our selection process Define and communicate quality standards for carbon offset projects Define and communicate quality standards for carbon offset projects Bring forward an eco-label for carbon offset provider Bring forward an eco-label for carbon offset provider

16. Thank you for your attention!