Are Carbon Credits a Scam?

Adventures in Sustainable Living Podcast
Episode 117
Are Carbon Offsets a Scam? 
 
It makes me happy when I  hear more and more about the principles of zero waste, reducing carbon emissions, expansion of renewable energy, and the world moving toward a circular, sustainable economy. 
While this is encouraging, I also think we need to once again pay close attention and not accept things at face value. So many times we get distracted and even deceived by some that appears to be practical and valuable when the underlying truth is that real change is still not happening. 
Is this also true when it comes to carbon offsets? Are carbon offsets practical and effective or is it just another scam? So, hang around for episode 117.
Welcome back everyone to the Adventures in Sustainable Living Podcast. This is your host Patrick and this is E117 which is called Are Carbon Offsets a Scam? 
If you listened to my last episode Will Greening Ourselves Result in Extinction then you know that I spent some time talking about all the things that big business and big government are doing to cover up the fact that they have no intention of reducing carbon emissions.  
Following that episode, I thought it was appropriate to discuss in further detail the nature of carbon offsets, how they work, and whether or not this truly addresses the reduction of carbon emissions or at least, according to big industry, the balancing of carbon emissions. 
What I want to do in this episode is to first present you will some basic facts about the sources of carbon emissions, programs designed to balance out those emissions, then give you opposing opinions on these issues. And finally I want to give you a real life example. 
Almost daily we hear something about the effects of climate change and as things become increasingly serious we are going to hear more frequently about possible solutions. What I what to do is give you a little mini course on what this is all about so that in the end you can make up your own mind. 
On a global basis there are five primary sources of greenhouse gas emissions: electricity and heat: 31%,  agriculture 11%, transportation 15%, forestry 6%, and manufacturing 12%. Overall energy production accounts for 72% of our emissions. 
As the world community becomes increasingly focuses on finding solutions to climate change, climate-related policy changes and litigation are becoming more frequent world wide. It is now quite clear that the involvement of big business in reducing global emissions is unavoidable. In fact, sustainability is already becoming an integral part of business resiliency. Consumers are more aware of the situation and more frequently make decisions to patronize a business that is sustainable. 
Consequently, one of the more convenient methods that a business can be more sustainable is through carbon offset programs. Carbon offsets are actually valuable certificates that are issued when carbon is either removed or prevented from entering the atmosphere. 
That said, there are concerns about carbon offsets being just another means of “greenwashing.” This is a term that is used to describe a company that is masking its unethical behavior behind a a curtain of so-called green actions. On the other hand, carbon offsetting projects can actually promote meaningful environmental and social projects. 
So, what exactly is a carbon offset project and how does a company buy into these projects. So, the basis of these programs is that every ton of emissions reduced by some environmental project creates a carbon offset of a carbon credit. Companies can make direct investments in carbon offset projects or purchase carbon credits as a means of reducing their carbon footprint. The bottom line is that a company is investing in some sort of environmental project as a means of balancing out their emissions. 
Now, there are several ways in which companies, as well as each and everyone of us, produces carbon emissions. We directly produce emissions by driving our vehicles. Businesses produce directly emissions from the operation of company vehicles and their own factories. Indirect emissions are produced when we purchase electricity which is generated by fossils fuels. The same is true to businesses. We indirectly produce emission through the things that we purchase everyday. Companies produce emissions via their supply chains, shipping, business travel and the extraction of raw material necessary to produce their products. Since completely eliminating any sort of carbon emissions is truly not possible, a business as well as every individual can participate in carbon offsets. 
Type of Carbon Offsets
Now, there are four major types of carbon offset programs than can be useful and beneficial in a number of ways. 
 
 
Conservation and Forestry
One of the most popular is conservation and reforestation. Carbon credits are created by planting new trees or preventing trees from being cut down. These projects can range from protecting old growth forests, re-wilding former agricultural land, replanting mangroves, or restoring peat bogs. 
Forestry and conservation projects tend to be expensive but they are often chosen because of the wide range of benefits produced beyond carbon offsets. Such projects protect wildlife, restore ecosystems, and even protect local social heritage. 
One such project in the United States is Michigan Big Wild Forest Project. This includes the Pigeon River Country State Forest, a 100,000 acre project, and the Wolverine-Copper Country Project which focuses on restoring hardwood forests. 
Businesses interested in offsetting their carbon emissions can purchase credits to help fund these projects. For example, DTE Energy, which is one of the largest providers of electricity in Michigan, has purchased $18 million in carbon credits. But they are also closing coal-fired plants and replacing them with renewable energy systems. 
 
Renewable Energy
And this brings us to the next major carbon offset program, building and maintaining solar, wind, and hydro energy projects around the world. Companies can invest in these projects in order to boost the amount of renewable energy on the grid. But such projects also create jobs. 
One such project if the Bokhol Plant in Senegal, west Africa. This plant provides renewable energy to 160,000 people, creates local jobs and saves the government $5 million per year. Profits from selling carbon credits and fed back into the local community. 
Community Projects 
The next big area for offsets is community projects. These projects are often introduced to undeveloped communities and introduce technology and methods of energy efficiency. These types of projects promote sustainability and can often relieve poverty conditions in entire regions. 
One such project is the Water, Sanitation, and Hygiene project in Ethiopia. This project provides clean water and reducing carbon emissions because families no longer have to burn firewood to boil water. This in turn protects local forests and provides local jobs.
Waste to Energy
Another common project is waste to energy. This often involves capturing methane from landfills or agricultural waste and converting it into electricity. 
A good example of this is a project in Vietnam that is training locals to build and maintain biogas digesters which turn waste into an affordable, renewable, and clean source of energy. This project also helps to protect local forest because firewood is not needed.  
Opposing Opinions
Now that is the quick run down of carbon offset programs. These programs obviously provide a wide range of environment, economic, and social benefits beyond the carbon offsets.  
Now, I want to show you opposing opinions regarding the benefits of these programs because some people argue that these programs and just a scam.  And I am going to directly quote some information from a couple of websites. But I am also going to provide links to these websites in order to give appropriate credit for the information. 
Now the following information is a direct quote from carboncredits.com. 
“Some critics argue that carbon offsets are a scam, but there are several key points to consider in the debate. 
-Firstly, carbon offsets are a legitimate and effective way for individuals and companies to reduce their carbon footprint and mitigate their contribution to climate change. 
-Secondly, carbon offset programs are regulated by third-party organizations that verify the validity and effectiveness of the offsets purchased. 
-Lastly, carbon offset projects often provide additional benefits beyond reducing carbon emissions, such as supporting renewable energy development and improving local economies. 
Once again, that is a direct quote from carboncredits.com
Now for the opposing opinion:
This information is quoted directly from an article sponsored by the Green Peace Organization titled Carbon Credits are a Scam. 
“Carbon offsetting is truly a scammer’s dream scheme. 
It’s a bookkeeping trick intended to obscure climate wrecking-emissions. It’ tree planting window dressing aimed at distracting from ecosystem destruction.
It is the next big thing in greenwashing — and we must not be fooled. 
The climate crisis is real, and we all need real solutions
Meanwhile, the fraud of carbon offsetting is built upon many of the hallmarks of a classic con: 

 Greed drives it — Big Oil and corporate polluters want to keep putting profits over people and the planet.
 It feigns compassion — The same climate villains want to publicly appear to be taking climate action to help their image. It’s total greenwashing. 
 It preys on fear — With climate impacts already increasing worldwide, we are all afraid of experiencing the worst-case climate scenarios. 
 It takes advantage of uncertainty — Climate denial and misinformation bankrolled by Big Oil has intentionally fostered unnecessary and counterproductive confusion despite the science being clear that we urgently need to drastically reduce carbon emissions in order to stay on track for the Paris Agreement 1.5°C warming limit.

We need real solutions, we need to get emissions down to real zero without being distracted or derailed by offsets and so-called “net zero.” 
Now, once again, that was a direct quote from the GreenPeace website that sponsored an article titled Carbon Offsets are a Scam. 
The Reality
Obviously there are some pretty strong opposing opinions about this issue. But, let’s take a look at the practical side of things.  And while we are doing this I want you to think about an old saying, which goes like this;
If you always do what you’ve always done you’re always going to get what you always got. 
Now let’s think for a minute about the forestry and conservation projects in Michigan. The forests that are now being protected were there in the first place. If companies are purchasing carbon offsets then they are paying for something that was going to happen anyway, meaning the removal of carbon from the atmosphere by the trees. Unless the Department of Natural Resources reducing or eliminates harvesting of the trees and increase reforestation from the payments they receive, then the project accomplishes nothing. Companies invest in these projects and still maintain their same level of carbon emissions. In my opinion, cutting emissions instead of trees is a better way to go. 
Now let’s think of this in a little bit of a different way. Obviously a coal fired power plant emits CO2 into the atmosphere which causes global warming which is something we need to change. But the owner of the call fired plant purchased carbon credits in the 100,000 acre project in Michigan. Now they can point to that forest and say, “Look, I am paying for those trees to not be burned or cut down, so now we’re even.” Meanwhile they continue burning coal which continues to contribute to global warming.  
That being said, let’s talk a little bit about trees. Trees are a natural carbon sink because they continue to absorb carbon as they grow. How much CO2 they absorb depends on their size, age, species, where they are growing as well as some other factors. At any rate, even smaller tress provide some obvious benefits. For example, a tree that is less than 8 inches in diameter produces 12 pounds of oxygen which allows six people to breath for a day. It stores 4 pounds of carbon. It produces 119 gallons of water evaporation which in turn produces the cooling effect of five air conditioners running for 20 hours. One acre of trees absorbs about 2.36 metric tons of CO2. Based on this, you would think planting trees is a great way to offset all of our carbon emissions. But, again let’s look at the true reality. 
In 2020, the United States produced 5,222 million metric tons of carbon dioxide emissions. In 2021, the per capita CO2 emissions was 14.24 metric tons. Can we truly plant enough trees to offset these kinds of emissions.  
Well, since the year 1600 90% of the virgin forest in the US have been cleared. This means we have a lot of planting to do. But, in order to offset our emissions, we would need 2.21 billion acres of trees. There is only 2.43 billion acres of land in the US. Thirty percent of that is arid or semiarid land and presently 40% of our land is now at risk of turning into desert because of global warming. Just speaking from a logistical perspective, planting trees as a carbon offset is not going to work. 
Now here is another way to look at this, at least from a personal perspective. And this is simply based on the logic of carbon offsets. On a personal basis, the major contributors to our individual carbon footprints is the food we eat, the products we consume, our personal transportation, and our household energy. 
Despite the fact that I live off the grid, consider for a moment that I am no different from anyone else. I produce 14.24 metric tons of emissions every year. Now my homestead property is a little over 46 acres and is completely covered with trees. That acreage absorbs approximately 108 metric tons of CO2. That effectively gives me 94 metric tons of carbon credit every year. So, I am set for life.  
That means I can eat whatever I want despite the fact that meat production has a huge environmental impact. That means I can drive the biggest truck possible for as many miles as I want despite the fact that I would continue to pollute the environment. That means I can heat both of my cabins with nothing but propane despite the fact that I am burning fossil fuels. I can do all of these things because I sit on 46 acres of trees and that is my carbon credit for life.  
So, think about this for a moment. 
Conservation and reforestation projects are a common carbon offset program. But we should practice conservation and reforestation anyway because we are protecting the ecosystems on which we depend for our very survival. 
Renewable energy project are another common carbon offset project. But we should be using renewable energy in the first place because it makes more sense. The amount of solar energy that hits our planet in a single day is more than enough to power the entire planet for one year. The extraction and usage of fossil fuels continuously pollute the environment. 
Community projects are fantastic because it improves the lifestyle of impoverished people and protects their health and well being. One of the pillars of sustainability is people. Developed countries should make the effort to help those that live in poverty. By doing so, we prevent damage to the local environment from people just trying to maintain a decent standard of living.  
Waste to energy projects are fantastic. It is just another form of renewable energy that we can use instead of fossil fuels.  
So what is the better choice? I sit happily on my carbon credit for life while eating whatever I want, consuming as much as possible, driving wherever and whenever I want and heating my cabins with fossil fuels. But we don’t do that. 
We power the entire homestead off of renewable energy. The cabins are so efficient that we use 80% less electricity than the average home. We grow a lot of our own vegetables and herbs. We raise our own chickens and turkeys and acquire game meat from local sources. Such habits are proven to be healthier and sustainable.  We have an efficient water system and we use 90% less water than the average American home. 
This past year we even added a sun room on the south facing side of the cabin to take advantage of passive solar energy. By doing so, we have reduced our consumption of firewood by at least 30%. Once I realized all the commuting I do was responsible for my biggest environmental impact, I change how and who I was working for and reduced my commuting by 60 percent. 
So what is better, carbon offsets or actions that are proven to safeguard the environment and reduce our personal impact. What is better the owner of a coal fired power plant purchasing carbon credits and patting themselves on the back or closing the plant and building one based on renewable energy. I would contend that the greatest impact is going to be achieved by doing both. 
If you always do what you’ve always done you are always going to get what you always got. 
As I said in my last episode, the reality is the things that would truly make the difference is developing mass transportation, substantially reducing personal car ownership, ending oil and gas exploration, closing coal mines, building community based renewable energy plants, doing away with industrialized farming, promoting and building local organic farming systems which have been proven to enhance nutrition, improve biodiversity, and quality of life. We can no longer have an economic system focused on capital accumulation which allows corporate profits to prevail over the well being of people and the environment.
 
According to NASA experts,
“The effects of human-caused global warming are happening now, are irreversible on the timescale of people alive today, and will worsen in the decades to come.” 
 
I do not believe that carbon offset programs are a complete scam. These programs do provide a lot of environmental, economic and social benefits. However we cannot be distracted by these programs as a possible solution for our carbon emissions. To do so will be disastrous because we are not focusing on changing the underlying behavior that got us where we are in the first place. Conservation and forestry practices, renewable energy, community projects, and waste to energy are all things we should be doing anyway. We should not be using it as a commodity that rationalizes continued irresponsible bad behavior. 
 
Real action and real reductions in emissions is exactly what we need to focus on. Carbon offsets should just be icing on the cake of a sustainable lifestyle because such things extend our positive impact even further. A lifetime of sustainable behavior is what will change the world not carbon offsets that give us an excuse to not change our behavior.  
 
Well folks, I hope you have enjoyed this episode and it has given you a lot to think about. I hope you will join me again next week because I am going to discuss another topic that we hear about quite frequently, and that is the transition to electric cars. Is this something we truly should consider or do they produce even more environmental impact. So join me next week and find out. 
 
Until then I want to leave you with one last thing to think about.  Someone said to me once that “You always, always, always, reap what you sow.” Now when you think about that from a sustainable perspective, you can begin to appreciate why our world is in its present condition. But despite what the news media likes to say, I do not believe all is lost. We are not yet past the point of now return. 
 
Living a sustainable life is a matter of paying attention to all the little details, mastering one concept at a time, and having one small success at a time. But this is no different than anything else. Taking care of the little details and mastering small-scale success represents the most dependable road to realizing big dreams. And that is how we will save the world, one small-scale success at a time.  
 
So join me again next week for another episode of the Adventures in Sustainable Living podcast. But for now, this is your host Patrick signing off. Always remember to live sustainably because this is how we build a better future.
  
Resources 
 
Are Carbon Credits a Scam? Key Points to Consider 
 
Carbon Offsets Are A Scam
Patrick