A Tip of the Cap

How often does that happen?  That is, and I ask this respectfully, was the above quote a political statement or an accurate rendering of how cap systems routinely work?

This is incorrect. Voluntary carbon offsets are generated from projects that DIRECTLY reduce, destroy, sequester or avoid the emission of greenhouse gases, e.g. through the construction of anaerobic digesters at farms that reduce methane emissions from manure, or systems that capture landfill gas emissions.

The definition you provide above actually describes voluntary renewable energy certificates (RECs). RECs support renewable energy projects, which can result in INDIRECT emission reductions, since they generate essentially carbon free electricity.

RECs are sometimes appropriately used to "offset" indirect emissions from the energy we use, and sometimes they are used inappropriately to offset direct emissions. However, they should not be used to offset direct emission reductions (like those from your car). For those emissions, voluntary offsets should be used.

Of course, one should try to reduce their footprint as much as possible before offsetting.

Finally, inflammatory comparisons like "I'm sorry I'm repeatedly choosing to break your leg, let me apologize by funding medical training in Zimbabwe," are ridiculous and discourage conscientious people from engaging in a very positive, managable action that individuals can do to combat climate change. I offset because I know I can't live an entirely impact-free life. I address the impacts I do leave by doing something proactive about them.

   1. Carbon taxes will lend predictability to energy prices, whereas cap-and-trade systems will aggravate the price volatility that historically has discouraged investments in less carbon-intensive electricity generation, carbon-reducing energy efficiency and carbon-replacing renewable energy.
   2. Carbon taxes can be implemented much sooner than complex cap-and-trade systems. Because of the urgency of the climate crisis, we do not have the luxury of waiting while the myriad details of a cap-and-trade system are resolved through lengthy negotiations.
   3. Carbon taxes are transparent and easily understandable, making them more likely to elicit the necessary public support than an opaque and difficult to understand cap-and-trade system.
   4. Carbon taxes can be implemented with far less opportunity for manipulation by special interests, while a cap-and-trade system's complexity opens it to exploitation by special interests and perverse incentives that can undermine public confidence and undercut its effectiveness.
   5. Carbon taxes address emissions of carbon from every sector, whereas cap-and-trade systems discussed to date have only targeted the electricity industry, which accounts for less than 40% of emissions.
   6. Carbon tax revenues can be returned to the public through dividends or progressive tax-shifting, while the costs of cap-and-trade systems are likely to become a hidden tax as dollars flow to market participants, lawyers and consultants.

For details, see our issue paper carbon taxes versus cap-and-trade.

Dan Rosenblum
Co-Director
Carbon Tax Center

Paying a measly sum to drive Hummer/Escalade/Yukon/[insert other gas pig here] back and forth to woek does not buy you credit, it only pays for you to feel better about your sin of hubris and stupidity!