Bills & EnergyCarbon Offsetting |
Carbon Dioxide frequently asked questions
What is carbon dioxide?Carbon Dioxide, or CO2, is a colourless and odourless gas that is a normal part of the air. The consumption of fossil fuels such as oil and coal increases the level of carbon dioxide in the air. Carbon dioxide is a greenhouse gas which means that it helps keep heat in the atmosphere, however the more carbon dioxide there is in the atmosphere, the warmer the earth can become. As we burn more fossil fuels such as oil and coal, we contribute to global warming.
What is a carbon footprint?A Carbon Footprint is a way of measuring the impact that humans have on the environment in terms of greenhouse gases. It is usually measured in tonnes of carbon dioxide. There are two parts to a Carbon Footprint: The direct footprint is the amount or carbon dioxide created by people through activities such as driving, flying and heating and lighting their homes. The indirect footprint is how we measure the amount of carbon dioxide created in the manufacture, transportation and storage of the everyday goods we buy and use. For example, if a consumer buys clothing made in a country that is far away, that consumer is indirectly responsible for the emission of carbon dioxide resulting from the clothing being manufactured and transported. This service focuses on establishing and offsetting the direct/primary footprint
of UK households.
What is carbon offsetting?Carbon Offsetting is the process of cancelling out all or some of the carbon dioxide emissions for a person or business. This is done by reducing one party's emissions, or increasing the carbon dioxide absorption or another. The government sets a finite number of CO2 allowances (measured in metric tonnes) that are allowed to be emitted into the atmosphere during any given amount of time. As certain companies emit more than others, underutilized tonnes can be traded or sold from one company to another as commodities. Either of the parties concerned or a third party can purchase these allowances (offsets) which then results in the forceful reduction of another's emitted tonnage. Governments can also offset carbon emissions. For example, the British government recently purchased offsets to zero out the CO2 emission from the air travel by the G8 countries travelling to the latest summit.
How does a Carbon Offsetting trading scheme work?Companies A and B each emit 100,000 tonnes of CO2 per year. The government has given each of them an allowance for 95,000 tonnes, leaving them with a 5,000 tonnes shortfall. They now have the following options:
Assuming a market price of £10 per tonne of CO2, the companies calculate the most effective way to meet their requirement is this: Company A: Company B
What is climate change?The earth is surrounded in a blanket of greenhouse gases such as CO2 and methane. When the sun’s rays hit the earth, most reflect off into space but some are trapped by these greenhouse gases. Trapping this heat keeps the earth’s temperature relatively constant. Without these gases, the earth would be either too hot or too cold. Climate change (also known as global warming) occurs because we are creating more and more CO2 which is being trapped, making the earth’s temperature rise. If the temperature of the earth gets too high, it will seriously affect life on the planet.
What does it mean to be 'carbon neutral'?Carbon neutral means that a person or business has zero net emissions. This can be achieved by reabsorbing CO2 emissions (for example, by planting trees that use CO2 for photosynthesis) or by offsetting emissions. A state of CO2 neutrality is achieved when the amount of CO2 produced by a business or person is equal to the amount being removed by offsetting or through absorption.
How does carbon offsetting help the environment?By buying Allowances (measured in metric tonnes of CO2) through this service, you are removing CO2 from the atmosphere. Allowances can be traded, i.e. they could be resold to an organisation that might need them in order to increase its emissions. Because Allowances bought through this service are not resold, but are instead retired, your contribution will ultimately help reduce the amount of CO2 in the air.
Why don't you just plant trees?Reforestation projects are a great way to help in the fight against Global Warming, because plants absorb carbon dioxide. However, the scientific community differs about the standards that should be applied to measure their benefit, considering that plants will ultimately re-emit all of the carbon they have absorbed when they die. The aim of this service is to help reduce the amount of CO2 in the air through the purchase of Carbon Allowances, which are licenses to pollute, and to retire them so that they cannot be used to pollute.
Where does my money go when i buy offsets?When you buy Carbon Offsets from this website, you are doing so through Xelector Limited which is authorised by the United Kingdom Environment Agency (registration GB-121-1059-0) to trade in CO2 Allowances. Allowances are bought on a stock exchange (the EU-ETS) on your behalf. The money that you spend goes to the seller of the Allowance.
What is the Kyoto protocol?The Kyoto Protocol to the United Nations Framework Convention on Climate Change is an amendment to the international treaty on climate change, assigning mandatory targets for the reduction of greenhouse gas emissions to signatory nations. Most nations are signatories to the Protocol.
What are the UK's environmental responsibilities under the Kyoto protocol?Currently, the UK Parliament is working to pass a bill that will legally mandate a 3% annual reduction in CO2 in Great Britain. As per the goal of the Kyoto Protocol, the UK is aiming to reduce CO2 emissions by 20% by the year 2012.
How do I create CO2 emissions?Every time you drive your car, heat your home, run your air conditioner and turn the lights on, you are causing CO2 emissions. These are more commonly known as primary emissions. Primary emissions result from day-to-day necessities. Indirectly, there are also emissions that result from buying foreign goods such as food and clothing. If you purchase goods that are transported over a great distance instead of buying locally produced goods, you are indirectly creating CO2.
How do you calculate my carbon footprint?To get your carbon footprint, we ask your consumption of fuel, gas, electricity and your transportation habits. Once we have those numbers, we use average figures provided by the Department for Transport and the Department for Environment Food and Rural Affairs (DEFRA). We also take into account how you heat your home, whether you are subscribing to “Green” energy tariffs and what type of car you drive to determine your ‘direct’ or ‘primary’ footprint (i.e. the amount of CO2 that results from activities that require the use of fossil fuel).
How can I reduce my fuel consumption?
What do I get if I offset my CO2?We will send you a personalised certificate in Portable Document Format (PDF) to document your commitment to the global environment. To view an example certificate click here.
How much should I offset?We recommend that you offset 20% of your total emissions, as this is the UK’s target to achieve by 2012.
How often should I offset my CO2?To have the greatest impact, you should offset every year. We will send you a reminder close to your renewal date.
Can I offset CO2 on behalf of someone else?Yes, you can gift offset credits and give them to whomever you wish. The personalised certificate that is generated after you have offset can be made out to the person that you are gifting the offset to.
Do I get a tax advantage if I offset?Unfortunately, the UK does not offer any tax advantages for carbon offsetting. 
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Microsoft
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