Why the sector needs harmonised standards

Tejas Ewing interviews Jamal Gore, Carbon Clear

Jamal came to Carbon Clear after twelve years managing climate change, sustainable energy, and international development projects for a renewable energy trade association and in the non–profit sector. His career also included a short stint at the US Environmental Protection Agency’s climate change division

As managing director of Carbon Clear, a London–based carbon offset retailer, Jamal Gore has watched the media coverage of voluntary carbon offsets intently over the past few years. At the beginning of this year, he noted a lot of negative press coverage, some of which he felt was justifiable. "There were a lot of new entrants to the offset market who simply did not understand the complexity of the situation. Combine this with consumers not knowing exactly what to look for, and you are bound to hear some horror stories." Gore now feels that the industry as whole is finally and correctly moving towards transparency.

However, this transparency needs to be tempered with clarity and ease of use, he feels, because in its efforts to find a solution, "the industry has moved from a problem of no standards in an unregulated industry, to a situation of too many standards in a somewhat regulated industry." It is currently very difficult for a customer to know exactly what they are getting out of the current mix of regulation and voluntary standards and it is now very difficult for consumers to make an informed decision.

That means that today, there is no other option but careful due diligence. "Anyone wishing to buy voluntary carbon offsets must put a great deal of effort into their decision at the moment, because there are significant risks to your reputation of you get it wrong." And the process takes a long time, "six months is fast in today’s marketplace, because purchasers have strict criteria they must meet, and they want all the information about projects and credits to be ready, so that they can make an informed decision." And the committees involved are often large, involving the CSR and environmental managers as well as board level decision–makers. "Companies feel that offsetting is a relevant component in the sphere of carbon reductions, and they are learning more and more about how to choose the appropriate offset for their needs." People are no longer simply choosing based on price or convenience anymore.

Currently, Jamal sees people gravitating towards a few major systems. Large organisations are beginning to prefer Kyoto–compliant CDM CERs above other credits, because of their more stringent verifiability, which reduces risks to their reputation. For individuals and small businesses, VERs that are verified by a third–party standard such as the Voluntary Carbon Standard, are still attractive, because the projects involved are often more interesting and meaningful on a personal level. "There are different philosophies behind the different credit and project types, and this diversity is useful."

Kyoto projects have strict rules and regulations that provide a bias towards large industrial projects. VERs, due the unregulated environment in which they are generated, can be much smaller and more diverse, often including community involvement and other environmental benefits in the project structure. And customers are beginning to demand this. "Being able to demonstrate social and environmental benefits is becoming very relevant to the consumer, which makes VERs quite attractive to some. That being said, the VER market needs to do more to earn the trust of consumers."

Gone are the days when a person purchased offsets readily and easily, with little oversight, feels Jamal. It is now a difficult and time–consuming decision, which reflects negatively on the industry as a whole. The current situation, which doesn’t adequately address the needs of the consumer is pointless. "How many different seals of approval do you actually need? Each standard today is slightly different, and I am in favour of harmonisation under a few clear standards that the industry can agree on, and that consumers will understand and respect." But this is a tall order, and will take action from all levels. "Government, industry members, advocacy groups and consumers all need to be involved."