Frequently Asked Questions

For most people, every kilowatt of electricity, every mile of travel involves the burning of fossil fuel and the release of CO₂. Every product that we use has some form of "Carbon Footprint", in the form of CO₂ emissions into the atmosphere during manufacturing, shipping and even purchase. So when you add up your travel, home and purchases a person can generate well in excess of 15 tons (over 33,000 pounds) of CO₂.

Explaining a carbon offset can be complicated, since there are many companies and not for profit organizations that offer to "offset" carbon dioxide production. A CO₂ offset, by definition should reduce CO₂ in the atmosphere, by an amount equal or in excess of that activity being offset. If you want to offset 1 ton of CO₂ from driving, then a legitimate offset will reduce atmospheric CO₂ by that much.

A variety of CO₂ offsets are offered in the marketplace, by various sources. One example of what constitutes an offset is planting a tree for each ton of CO₂ that is being offset. This 'forestry' approach assumes that over the life of the tree it will absorb at least a ton of CO₂ and convert it to wood that will survive for hundreds of years. Another common way to offset CO₂ is to build windmills or install solar panels to generate power without carbon or other greenhouse emissions. The only problem with relying on companies that sell these self-regulated solutions, is that it's difficult to know if you are receiving a valid offsets

One of the strangest ways offered to offset CO₂, is by burning methane gas that would otherwise be released into the atmosphere. Burning methane actually generates 133 pounds of CO₂ for every 1000 ft³, of gas that is burned. While its a shock to hear that burning methane offsets CO₂, it turns out that each pound of methane released into the atmosephere is as damaging to the earth as 20 pounds of CO₂. Thus burning this free methane to emit CO₂ actually reduces the greenhouse effect. This is a case of the truth seeming stranger than fiction.

One way that emissions of CO₂, methane and other more noxious gases are managed and reduced, is with commodity contracts that package the ownership of offsets granted for reducing greenhouse gases. These commodity contracts are legal contracts, which require the party that is creating this contract to reduce their CO₂ output or increase their clean power by the amount specified in the contract. This offset commodity allows companies, consumers and even speculators to trade these pollution rights. In order to ensure that an orderly, functioning market can exist, contracts are standardized and traded on commodity exchanges. 4Offsets is currently a registered Participant of the Chicago Climate Exchange.

4Offsets® exclusively uses CO₂ commodity contracts to offset our communities/clients CO₂ releases. These contracts are offered up by owners of renewable energy sources, such as wind farms, landfill operatorator or even lumber companies. These contracts are created under a system where neutral, oversite is provided by 3rd parties that monitor and verify that the contracts being sold are legitimate. This industry trading system greatly enhances 4Offsets® ability to provide a consistent and trustworthy solution.

5. Are you saying anyone not using commodities isnt offering real offsets, are some carbon offsets better than others?

We are saying no such thing. There lots of companies offering to offset carbon dioxide emissions and the vast majority of them are making good faith efforts to offer a valid solution. The problem is: who is measuring and verifying that their efforts are effective? We feel that our method of filling orders solely with exchange traded offsets make us the most transparent provider in the industry today.

In Europe there are legal requirements to reduce or offset CO₂ releases. These "Cap and Trade" rules began in 2005 and allowed that emitters can buy or sell their allocations as they need to support their business. The theory is that this system will help achieve changes in the most market efficient way. Because CO₂ effects the entire planet, it doesn't matter where the CO₂ is released or reduced, it all affects the world. At the same time, CO₂ sources and the cost of reducing emissions in Africa might cost much less than reducing them in London or L.A. So African emitters might sell their CO₂ emissions rights for more than it costs them to reduce the CO₂ emissions, while the buyers cost of reducing their emissions is greater than the price they've paid for the emissions right.

When you purchase offsets for your vehicle, home or business, you are competing with CO₂ emitters for a scarce resource. If Pollutco Power needs 1 million more tons of emission rights and 100,000 people from 4Offsets® want the same rights, the cost of those offsets increase. As the price of emitting CO₂ increases; it becomes relatively less expensive to deploy carbon free power (solar, wind, tidal). This in turn encourages the development of green power, because the sale of offsets, will improve the investment return on the new green power deployment. This is a free market approach that seems best suited for American society.

4Offsets® is buying and retiring (eliminating that emission contract so the CO₂ cannot be resold or emitted) CO₂ emissions rights on an on-going basis. We take your money to retire more offset contracts in order to fill orders for tomorrows customers. Since we are a private business, we seek to make a profit for our shareholders and to pay a good wage to our staff. Our goal is to provide not just offsets, but information about practical products, promising research and general news about the movement for sustainable living. We are building a company focused on helping you go green. We seek to find products and services that let you substitute earth friendly replacements for products you already use. We dont seek to "Change your politically incorrect ways", we dont have a monopoly on morality or anything to say about how you live. We hope to change the world by connecting you with a greener product that you will feel comfortable in substituting for a less green product, and make the cost of doing so reasonable.