[HN Gopher] Companies are buying large numbers of carbon offsets...
       ___________________________________________________________________
        
       Companies are buying large numbers of carbon offsets that don't cut
       emissions
        
       Author : prostoalex
       Score  : 155 points
       Date   : 2022-09-09 16:01 UTC (7 hours ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | WalterBright wrote:
       | The right way to reduce CO2 emissions is to simply tax the carbon
       | content of fuels as they are sold from the refinery. Increase the
       | tax until the usage goes down.
       | 
       | Simple, effective, efficient, and boring. And hard to virtue
       | signal one's way out of.
        
         | yongjik wrote:
         | 28% of Americans flat out oppose America becoming carbon
         | neutral by 2050 [1], and that's before we even ask them how
         | much they're willing to pay. Only 31% supports phasing out
         | fossil fuels completely.
         | 
         | I don't think "virtue signaling" (or its lack) is the problem.
         | 
         | [1] https://www.pewresearch.org/science/2022/03/01/americans-
         | lar...
        
           | david422 wrote:
           | But why don't they want to phase it out? There could be some
           | other reasons like:                 1. a job tied to fossil
           | fuels       2. concerns that energy prices will go up without
           | fossil fuels       3. lack of alternatives for things like
           | trucks etc.
           | 
           | And/or change is scary and 28% probably just don't want to
           | change.
        
             | MichaelCollins wrote:
             | 4. Religious beliefs.         5. Trolling the libs.
             | 6. Belief that carbon taxation is a scheme to impoverish
             | their nation for social justice.         7. Belief that
             | global warming will be good for their community.
        
         | criddell wrote:
         | How do you sell that to voters?
        
           | WalterBright wrote:
           | Use the monies to correspondingly reduce the sales tax.
        
             | landemva wrote:
             | Eliminate personal income tax.
        
               | WalterBright wrote:
               | The sales tax taxes everyone, so everyone would get a
               | benefit from the carbon tax.
        
               | landemva wrote:
               | Does compliance with personal income tax not apply to
               | certain people? Even poor W-2 people have to sign and
               | mail a yearly form to get over-withheld payroll
               | deductions refunded.
        
               | WalterBright wrote:
               | Something like 40% of Americans pay no income tax.
        
               | criddell wrote:
               | And in the five states with no sales tax?
        
           | it_citizen wrote:
           | Just like Canada did. By redistributing the tax revenue. Look
           | up Carbon fee with dividends.
        
           | TheCoelacanth wrote:
           | Give all of the proceeds from the tax back to the people.
           | Effectively, instead of all carbon-emitters paying the
           | government, make it so that high-carbon-emitting people have
           | to pay the low-carbon-emitting people.
        
             | it_citizen wrote:
             | And it reduces inequalities given that the 20% richest
             | pollute way more than the 80% poorest.
        
               | Aunche wrote:
               | Unfortunately, consumption taxes are always regressive,
               | and a carbon tax would be no different. Even if you
               | happened to receive more from a carbon dividend than you
               | would pay in carbon taxes, you would "pay" for it by
               | having to sacrifice goods and services that you otherwise
               | would have consumed. I do support a carbon tax, but I
               | think it's important to be realistic about its effects if
               | we want it to be politically sustainable.
        
               | TheCoelacanth wrote:
               | Only if you are currently emitting more than the post-tax
               | average emission. If you are already below average, you
               | can emit the same amount and get paid.
               | 
               | Poor people are generally emitting well below the average
               | currently. They take fewer flights, have smaller houses
               | and buy less stuff in general. With current levels of
               | emissions, they would be getting paid without reducing
               | emissions at all.
               | 
               | Eventually after the rest of society reduces emissions,
               | they might have to reduce emissions, but that would only
               | be after the rest of society sacrifices much more
               | consumption.
        
               | Aunche wrote:
               | >Only if you are currently emitting more than the post-
               | tax average emission. If you are already below average,
               | you can emit the same amount and get paid.
               | 
               | You need to consider the downstream effects of the tax.
               | The oil can only get taxed once, but the effects are
               | compounded throughout the entire economy. For example,
               | truck drivers would see dramatically increased expenses.
               | For examples, truck drivers would have to pass on the
               | cost of the fuel to transport freight. Meanwhile, other
               | drivers will be forced to quit, which reduces our total
               | freight throughput, which makes shipping even more
               | expensive.
        
               | thinkcontext wrote:
               | You could scale the refund according to income.
        
               | kelnos wrote:
               | Does it, though? For example, I would expect lower-income
               | folks to be more likely to have older, less-fuel-
               | efficient cars.
        
               | lkbm wrote:
               | They also fly less, have smaller cars/apartments, buy
               | cars less frequently, and buy less stuff in general.
               | 
               | I think air flight is typically my largest source of CO2
               | emissions, and certainly will be this year.
        
               | bumby wrote:
               | It does according to some studies.
               | 
               | "The trend is clear: Emissions generally rise with
               | wealth...The richest 1%--... earning $109,000 a year--are
               | by far the fastest-growing source of emissions."[1]
               | 
               | And at least according to that article, it's not due to
               | international disparities in wealth.
               | 
               | "people's emissions within countries now overwhelms the
               | country-to-country disparities."
               | 
               | [1]https://www.bloomberg.com/graphics/2022-wealth-carbon-
               | emissi...
        
             | colinmhayes wrote:
             | Problem is that the people who consume less than the
             | average amount of carbon are generally located in cities
             | and therefore already support liberal policies. You need to
             | convince the conservative leaning suburbs, which are the
             | hardest hit by a revenue neutral carbon tax because they
             | have high incomes and don't live in high density areas.
        
           | hedora wrote:
           | Be honest about how said voters' houses are going to be
           | worthless when Phoenix runs out of water, California burns
           | down, and Miami/NYC/New Orleans are under water.
           | 
           | Also, be honest about how we're rapidly barreling toward the
           | end of economic growth because the weather keeps destroying
           | industrial and agricultural production.
        
             | WalterBright wrote:
             | The only way Phoenix will run out of water is if the
             | government does not allow the price of water to be the free
             | market price.
        
               | wizofaus wrote:
               | What exactly is the "free market price" for water? Are
               | you suggesting reticulated water supply for a city should
               | be achieved via competing free enterprises? Is there
               | anywhere in the world where that's worked well?
        
               | WalterBright wrote:
               | The free market price is the price set by Supply &
               | Demand.
        
               | wizofaus wrote:
               | That's a non-answer unless customers can meaningfully
               | choose where/how to obtain their regular water supply and
               | how much to pay for it. I'm genuinely curious if that's
               | true in any modern cities.
               | 
               | Edit: Santiago in Chile seems to be close to such a case.
               | Interestingly, 70% of the population want to see a return
               | to public ownership of water rights. And it's pretty hard
               | to find evidence having private ownership of water rights
               | is helping ensure long term supply for all.
        
               | MichaelCollins wrote:
               | If they drain the aquifers and a bad drought hits for
               | long enough, they'll run out of _affordable_ water.
        
             | baggy_trough wrote:
             | The voters will cast a judgement about whether that is
             | hysterical nonsense or not.
        
             | nathanaldensr wrote:
             | Sorry, but most people don't believe that or you. Try
             | reading sources outside your bubble.
        
               | it_citizen wrote:
               | Reputable sources explaining that climate change won't
               | destroy trillions of dollar of assets and GDP? Seems like
               | I am in that bubble too. Could you lay them down please?
        
               | kelnos wrote:
               | True or false, reputable sources or not, there are still
               | plenty of people in the US -- enough to affect the
               | outcomes of elections, at least -- who just do not and
               | will not believe it.
        
               | aydyn wrote:
               | Reputable sources say that "California will burn down"
               | and "NYC will be under water"? Extraordinary claims
               | require extraordinary proof.
               | 
               | Unless OP is just using hyperbole to make a point, in
               | which case maybe they shouldn't.
        
         | renewiltord wrote:
         | I agree so hard. But it's like Georgism. There's a clear path
         | forward in economic theory, but the truth is that there is a
         | divergence between Stated and Revealed Preferences. The former
         | say "We are worried about Anthropogenic Climate Change". The
         | latter say "We will fire you if you act like we care about
         | Anthropogenic Climate Change to the extent that it causes
         | discomfort".
         | 
         | This is, in many ways, the ideal for most people. One can say
         | "Climate Change is really important" while blaming "The
         | Corporations" for what they're doing and simultaneously blaming
         | the President for "raising the price of gas".
         | 
         | That way you can appear virtuous while not sacrificing
         | anything.
        
           | WalterBright wrote:
           | The vast bulk of climate policy appears to be virtue
           | signalling. Like EV cars having "zero emissions", never mind
           | the coal power plants needed to charge the batteries.
        
             | renewiltord wrote:
             | California's electricity mix made EVs pretty good
             | (especially with timed charging) but I believe you are
             | right in general. A classic example is environmentalists
             | who want sprawl over dense cities.
        
               | WalterBright wrote:
               | Another example is blocking permits for natural gas
               | pipelines. This has resulted in increased coal plant
               | usage.
               | 
               | Coal emits twice the CO2 per energy than natural gas
               | does.
        
             | colinmhayes wrote:
             | Even coal power plants release less carbon per mile driven
             | than ICE cars.
        
               | wizofaus wrote:
               | Even for brown Coal? And accounting for embedded
               | emissions etc.?
        
               | WalterBright wrote:
               | Less, but not much less.
        
         | thehappypm wrote:
         | Unfortunately this doesn't really work in a democracy. It's
         | just going to end up being too unpopular. The next president is
         | just going to run on "I will cancel the carbon credits!" And
         | then win the election in a landslide and cancel them.
        
           | WalterBright wrote:
           | We already tax everything else, _including_ fuel.
        
             | thehappypm wrote:
             | And those taxes are extremely unpopular! And for a carbon
             | tax to work the tax would need to be punitive.
        
               | colinmhayes wrote:
               | It might feel punitive, but the entire point of pigouvian
               | taxes is that people were taking advantage of not having
               | to pay for externalities. Not having the tax is punitive
               | to the people who are consuming less than the average
               | energy.
        
               | WalterBright wrote:
               | All taxes are unpopular, unless they mostly or completely
               | fall on other people.
               | 
               | That hasn't stopped taxes in a democracy.
        
           | DennisP wrote:
           | One option is fee-and-dividend, which pays all the revenue
           | back out to the population, equal amount per capita.
           | 
           | You still have an incentive to reduce emissions, because your
           | dividend is the same regardless and you can reduce your fees.
           | And since most people's net emissions are less than average,
           | most people come out ahead.
        
             | rtkwe wrote:
             | Net over a year that's all well and good but the extra wait
             | for that dividend payment to come in will be rough for a
             | lot of people.
        
               | DennisP wrote:
               | Dividends don't have to go out annually. Estimated taxes
               | would come in quarterly, and it wouldn't be hard for the
               | government to pay out as frequently as social security
               | checks. Each period, adjust payments to make up for
               | discrepancies in the last period.
        
             | Aunche wrote:
             | At the end of the day, any sort of tax is going to generate
             | a dead weight loss. The amount of money that gets
             | distributed to you with a carbon dividend inevitably is
             | going to be less than your additional tax burden or the
             | consumer surplus from the goods and services you otherwise
             | would have bought without the tax. Of course, you make very
             | good arguments about why the dead weight loss is absolutely
             | dwarfed by the negative externalities of fossil fuel
             | emissions. Even if you don't consider climate change, air
             | pollution is a contributor of over 100,000 deaths in
             | America alone. However, this point is moot if people aren't
             | willing to act on those externalities.
        
             | adonovan wrote:
             | I've been telling people how great this idea is for years,
             | because it's simple for organizations to plan around as it
             | gradually ratchets up, easy to administer, and sort of
             | progressive in the sense that the poor benefit more
             | (relatively) than the rich.
             | 
             | But this year the penny finally dropped for me how
             | demoralizingly futile it is to make rational carbon policy
             | in the US by talking about its merits. The success of the
             | Inflation Reduction Act ($370bn for climate) was entirely
             | due to a cunning political hack: not taxing individuals
             | (only corporations) and reducing the deficit at the same
             | time (by staffing the IRS to enforce existing tax
             | collection laws), so that it could be acceptable to the
             | holdout conservative Democrats.
        
               | [deleted]
        
             | nwj wrote:
             | I _think_ I 've heard this option called a Pigovian tax
             | before. https://en.wikipedia.org/wiki/Pigovian_tax.
        
           | oliwary wrote:
           | What about introducing a variable environmental toll at the
           | border? It could be based on the environmental rules of the
           | exporting country and the expected emissions of the
           | production and transport of the good.
           | 
           | Ideally, this would have the following effects:
           | 
           | * Make local manufacturing more competitive - introducing
           | only local regulations gives companies a big incentive to
           | produce in less stringently regulated areas. Correcting this
           | could bring back manufacturing and be politically popular.
           | 
           | * Give companies an incentive to develop sustainable
           | processes.
           | 
           | * Give companies an incentive to lobby other governments to
           | introduce more stringent rules.
           | 
           | * Align cost of goods with actual externalities, motivating
           | people to buy more sustainable products.
           | 
           | * The toll revenue could be used to improve carbon saving
           | initiatives, such as public transport and sequestration.
        
             | landemva wrote:
             | Putting America on economic parity with manufacturing
             | polluters like China and Mexico is reasonable. The
             | environmental tariffs would be helpful to stop companies
             | from green-washing by manufacturing the iGadgets in
             | polluting countries.
        
         | hedora wrote:
         | Taxing at the refinery (or even well head) seems reasonable,
         | but it might be difficult to set up the tariffs properly.
         | 
         | Instead, they could tax gasoline at $1/gallon (and do similar
         | things for other greenhouse gas sources, such as coal, meat and
         | concrete), and use the resulting funds for carbon capture.
         | 
         | If you want a progressive tax, tax new cars at $2 * 200,000
         | miles / EPA combined miles per gallon. This will instantly make
         | all new cars carbon neutral or negative at the tailpipe.
         | Similarly, you could also tax embodied carbon on all new goods.
         | 
         | The $1/gallon of gas computation works like this:
         | 
         | Burning a gallon of gas produces 20lbs of CO2. (The O2 in the
         | CO2 comes from the atmosphere, explaining why the CO2 weighs
         | more than the gasoline.)
         | 
         | A ton is 2000 lbs, so 100 gallons of gas emits a ton of CO2.
         | 
         | Atmospheric carbon capture looks like it will cost roughly $100
         | / ton at scale, or $1/gallon of gasoline.
        
           | gremlinsinc wrote:
           | How do you do this, without hurting people with 'clunkers'
           | who need said 'clunker' to get to work or the market (because
           | they live in a food desert), and can't really afford to
           | upgrade to greener living because cost of living takes their
           | whole paycheck, and they'd be homeless if they can't afford
           | gas or their car breaks down unless they just started living
           | out of their car?
           | 
           | I'm hesitant to think taxing gas at the pump makes any sense,
           | I think maybe taxing diesel though could be a better thing
           | because diesel is used more commercially by big rigs, which
           | is a tax on commercial industries rather than consumers. Jet
           | Fuel and such should have a very high tax, because that's
           | something most people don't use, and isn't really a
           | 'necessity'. Fuel at ports should also be taxed, and I think
           | ports/airports should be under some global climate action
           | 'congress' or something that ensures equal taxation and
           | carbon offsets globally are being applied.
           | 
           | Though, if we were to use all the tax revenue or at least
           | maybe 50% for UBI to say anyone with < 100k annual salary, I
           | think it wouldn't matter if we taxed everything more evenly
           | including gas at the pump, in fact that'd probably encourage
           | more support for taxing carbon offsets since much of it goes
           | to taxpayers as cash in their pocket.
        
             | njarboe wrote:
             | Return all of the CO2 tax to the people. Everyone gets a
             | check for the same amount each quarter.
        
             | WalterBright wrote:
             | We already tax gas at the pump.
        
           | WalterBright wrote:
           | It's so much easier to just tax it at the production site,
           | because such production is pretty concentrated in a handful
           | of sites.
           | 
           | Taxing the C also properly accounts for different fuels
           | having different energy per C atom.
        
         | ZeroGravitas wrote:
         | This is effectively the corporations carbon taxing themselves,
         | because they know a carbon tax is the sensible answer, but
         | politics is holding it up in certain regions.
         | 
         | Just like the US car manufacturers don't really want Democrats
         | and Repbulicans raising and lowering emissions standards every
         | four years, big corps (other than coal producers maybe) don't
         | really want the carbon tax to go up and down on a political
         | whim. This is basically them setting aside the carbon tax
         | money, and applying the carbon tax pressure to themselves
         | internally, so they end up in the same place as a carbon tax
         | would lead them.
         | 
         | As with a pure cabon tax, in many ways it doesn't matter what
         | the money is spent on. As long as there is a financial
         | disincentive for people to burn carbon when there's an
         | alternative, it all kind of works out.
        
         | opportune wrote:
         | I agree completely. It is much easier to directly capture the
         | externalities at the most centralized and traceable point
         | (production/refining, and importing) than to have a
         | decentralized system of varying standards and shadiness. If you
         | tax carbon at the source there is no nuance and it's much
         | harder to cheat.
         | 
         | The problem does become partly a tragedy of the commons though.
         | If eg China doesn't tax carbon at all internally, then we'd
         | need to figure out how to appropriately tax the emissions of
         | imported finished goods so as not to incentivize them to
         | release CO2 as a competitive advantage. Even if we do that,
         | they may still trade with another country that doesn't tax
         | imported goods either. One benefit for carbon offsets is they
         | can in theory be used to incentivize cross-border emissions
         | reductions without requiring the poorer countries to sacrifice
         | anything.
        
           | colinmhayes wrote:
           | Right, the biggest problem with a carbon tax is that it would
           | lead to industries that are heavily reliant on energy to move
           | to defecting countries. Do we really want North korea to
           | become the epicenter of crypto mining?
        
           | WalterBright wrote:
           | We're already implementing ineffective green policies that
           | put the US at a competitive disadvantage. At least C taxing
           | would be effective.
        
             | ZeroGravitas wrote:
             | The US has several carbon fees/taxes.
             | 
             | https://carbonpricingdashboard.worldbank.org/map_data
        
         | DesiLurker wrote:
         | Agreed though it me be difficult to make it acceptable to
         | masses, especially poorer folks who may be push towards voting
         | red and effectively nullifying such change in short order. It
         | may be more palatable to make it revenue neutral and give the
         | money back as refund based on income.
         | 
         | Another way to think about it is the right price of carbon is
         | (in steady state) is the cost to remove the equivalant amount
         | of carbon if we dont want to worsen the situation. So a small
         | portion of this revenue (carbon-tax) could be directed towards
         | subsidizing properly vetted carbon removal techs. of course
         | this number will be high initially so we'll have to taper in
         | the change but it will also give chance for better public
         | acceptance and maturity for carbon removal tech.
        
         | natch wrote:
         | Naive in the extreme. See other comments about democracy. Also,
         | see history about revolts.
         | 
         | The best way is to make the alternatives to anything you want
         | to get rid of overwhelmingly more attractive to decision making
         | entities (people, companies, etc.), who will then choose with
         | their free will. Not easy to do, but some are working on it.
        
         | asiachick wrote:
         | Yes, and put millions of people out of work so they can starve
         | and live in tents
         | 
         | I'm not saying your wrong, only that raising the price of fuel
         | raises the price of everything else. Fuel prices go up,
         | shipping prices go up, shipping prices go up, product prices go
         | up, product prices go up, less people can afford to life.
         | Company expenses go up, company looks for ways to cut expenses,
         | often by lowering employment, etc...
         | 
         | VS coming up with cleaner and cheaper ways to fuel things, then
         | everything goes in the other direction. Cheaper fuel = cheaper
         | shipping = cheaper products = more poor people can eat.
         | Companies make more money they can hire more people, etc...
         | 
         | I know that's easier said than done, just pointing out raising
         | the price of fuel is not a simple solution beacuse it has
         | extreme consequences.
        
           | SamReidHughes wrote:
           | There are a ton of taxes and fees that could be reduced
           | because they're replaced by the revenue. Sales taxes and
           | payroll taxes, for starters.
        
           | WalterBright wrote:
           | We tax everything else without wrecking the economy.
        
           | thinkcontext wrote:
           | Europe has a carbon price and it hasn't wrecked their
           | economy. They of course have other energy related problems
           | but those aren't related to their carbon price.
        
           | endominus wrote:
           | I'm always wary of just-so stories. It's easy to pull them in
           | any direction one wants. Cheaper fuel -> lower prices ->
           | greater consumption -> more reliance on extraction of limited
           | resources -> less ability to move off those resources/find
           | alternatives without destroying the global economy ->
           | disaster when we hit "peak whatever." The pandemic has shown
           | how fragile the global economy has become due to the massive
           | network of linkages that have grown between what could be
           | relatively self-sufficient countries. A ship crashing in
           | single canal sent commodity prices worldwide through the roof
           | for months!
           | 
           | There was a comic I read a while back during the 2008
           | financial crisis, describing the banking sector as a group of
           | wizards building a massive tower in a town. Eventually, it
           | grows too large, wobbling and nearing collapse. The wizards
           | beg the townspeople for help. The townspeople say this is the
           | natural consequence of their actions, but the wizards counter
           | that should their tower fall, it is large enough to do
           | significant damage to the town as well. Thus galvanized, the
           | town gathers together and shores up the foundations of the
           | tower, securing it. At which point the wizards promptly go
           | back to making it even taller and grander, because no one
           | ever learns a lesson.
           | 
           | People are extremely averse to direct negative consequences
           | of actions, but are much more nonchalant about indirect
           | negative consequences, especially of inaction (see; the
           | trolley problem). There is always hope of a miracle cure.
           | That is the thrust of your argument; strong action now may
           | fix the issue, but cause widespread suffering in the short
           | term. Whereas the status quo is a slowly boiling pot, and
           | perhaps someone will find a way to turn off the heat while we
           | languish here, but more likely someone won't and waiting will
           | lead to an even worse economic outcome when global supply
           | chains are disrupted even more forcefully than by a simple
           | tax hike.
        
         | bosswipe wrote:
         | But the politics suck so it'll never happen.
        
         | ars wrote:
         | It's is not simple at all to tax fuel at the source!!
         | 
         | You have completely forgotten about import/export. If you tax
         | only American fuel, then American exports become very
         | expensive, while imports become cheap.
         | 
         | Guess what happens next?
         | 
         | Setting up a tax scheme for fuel that taking into account
         | import/export is incredibly complicated, your system is
         | probably the most complex solution there is!
        
       | JohnClark1337 wrote:
        
       | BryLuc wrote:
        
       | tdaltonc wrote:
       | If you're looking for an alternative to the (very problematic)
       | carbon offset (CO), check out Renewable Energy Credits (RECs).
       | COs are designed to incentives reducing CO2 in the atmosphere,
       | but verification and traceability problems make it hard for them
       | to achieve that goal. RECs are designed to incentivize the
       | construction of renewable energy based power plants. They're
       | easier to monitor because verification is handled by grid
       | operators checking the number on the meter.
       | 
       | We (Jasmine (YC-S22)) (https://www.jasmine.energy/) are building
       | a RECs exchange. Governments handle REC verification. We handle
       | liquidity, efficiency, and traceability.
        
         | ZeroGravitas wrote:
         | Though ironically, this is exactly what is being attacked by
         | the article.
         | 
         | They're arguing that giving money to renewables producers
         | should only be done, if the renewable wouldn't otherwise be a
         | viable business, and that some credits are from older renewable
         | energy projects that got grandfathered in, before the offset
         | organisations decided that they could spend their money more
         | effectively elsewhere since the renewables would get built
         | anyway.
        
           | tdaltonc wrote:
           | The UN's Clean Development Mechanism (CDM) is very different
           | from Renewable Energy Certificate programs. CDM project, as a
           | type off Carbon Offset, are supposed to be targeted have
           | "additionality," meaning, as you said, that the project
           | wouldn't exist if not for the subsidy.
           | 
           | RECs are supposed to be universal because they're about
           | tracking the production/consumption of all renewable energy
           | on the grid. That universality makes fraud much harder.
        
             | ZeroGravitas wrote:
             | Unbundled RECs have the exact same "additionality" issue,
             | and I'm assuming if you're creating a market for all
             | renewable energy on the grid, you are talking about
             | unbundled RECs.
             | 
             | This quote on your site appears to confirm that:
             | 
             | > Most generators don't know they are accruing valuable
             | credits they can sell. If you are a generator selling these
             | credits you could off-set the cost of your system.
        
       | jms703 wrote:
       | Where does the money go?
        
       | [deleted]
        
       | j_walter wrote:
       | This has been known in the industry for years. Everyone is
       | pushing companies to be carbon neutral, but that doesn't really
       | mean money is going where it should...it just looks good on
       | paper.
       | 
       | Unless companies have moral people in their upper management and
       | are doing their due diligence when selecting offsets then the
       | money is just going to other corporate profits and not making any
       | impact at all. I know this for a fact since my company is carbon
       | neutral and I also oversee the review process for not just carbon
       | offsets but also RECs. You can thank the government for little
       | oversight in the carbon offset process that they developed.
        
         | WastingMyTime89 wrote:
         | Yes but companies who overly rely on carbon offsets are
         | shooting themselves in the foot. With emission targets
         | gradually lowering and regulations becoming more and more
         | ambitious, offsets will become more expensive.
         | 
         | Not investing into meaningfully reducing emissions now is a
         | glaring lack of forward planning and due diligence. I fully
         | expect some companies to tank in the next twenty years because
         | of their current failure to adapt.
        
           | michaelt wrote:
           | _> With emission targets gradually lowering and regulations
           | becoming more and more ambitious, offsets will become more
           | expensive._
           | 
           | Oh _legitimate_ carbon offsets will be in short supply, which
           | you 'd expect to raise prices. No doubt about that.
           | 
           | But fraudulent carbon offsets? Those can be produced in
           | whatever quantities buyers are willing to pay for.
        
         | celtain wrote:
         | >You can thank the government for little oversight in the
         | carbon offset process that they developed.
         | 
         | Carbon offsetting is a government program? I thought this was
         | pretty much all the work of private companies, with buyers
         | doing so voluntarily and providers self-regulating (hence the
         | problems). Is that not the case?
        
         | moffkalast wrote:
         | > are doing their due diligence
         | 
         | Well they actually are doing due diligence, the problem is they
         | have a different objective: find the most carbon credits to buy
         | for the least money. It's not like they actually care about
         | being neutral, if they did they'd cut emissions instead of
         | pushing it onto others. It's all PR and complying with
         | government regulations.
         | 
         | Unfortunately the legit sources aren't gonna be a good choice
         | for that goal.
        
           | fasthands9 wrote:
           | Agreed. We just need to tax carbon or the externality of
           | emissions more. It doesn't make sense for companies to figure
           | out climate/energy science out on their own anyways. Its
           | completely silly to expect that every mid-size company figure
           | this out on their own and voluntary pay more than their
           | competitors and lose any pricing edge.
        
             | liamconnell wrote:
             | Great point. I have a comment below that goes into some of
             | the difficulty with this distinction.
             | 
             | To be fair, many small/mid-sized companies that act as
             | suppliers to larger companies would basically have the
             | larger company doing the carbon accounting for them.
             | 
             | For large companies, I think it would look more like an
             | accounting capability than a climate/energy science one.
             | The carbon credit market might become regulated with some
             | accreditation system after these wild west years.
        
             | galangalalgol wrote:
             | The money equivalency is the problem, not sure taxing it
             | will work either, only because will set the tax too low, or
             | it will get raised too high and be used to do something
             | unrelated. It doesn't matter if they pay enough to
             | sequester equivalent carbon, it matters if it actually gets
             | done. What if we tax, but in the form of stable or usable
             | carbon? If you emit X tons of co2 then you have to bring Y
             | tons of coal, diesel, crude, diamonds, graphite, preserved
             | wood or whatever, to government sequestration sites, or pay
             | someone else to do so. Laws to prevent the government from
             | using the stuff, and you'd drive up the price of fossil
             | fuels simultaneously to account for their externality as
             | well.
        
               | delroth wrote:
               | > or it will get raised too high and be used to do
               | something unrelated
               | 
               | That matters very little. Carbon taxation is a Pigovian
               | tax, and just making emitting CO2 more expensive creates
               | strong incentives to stop emitting CO2. It also makes
               | "green" alternatives comparatively cheaper.
               | 
               | In fact, many proponents of carbon taxation support equal
               | redistribution of the tax money to everyone (e.g. as tax
               | credits). Taxpayers polluting less than average would see
               | their tax burden decrease, while those polluting more
               | than average would be paying more and thus be
               | incentivized to change their behavior.
               | 
               | (Of course, it's not that easy in the real world, some
               | behavior can be extremely hard to change without
               | help/subventions/large investments. But these helps don't
               | have to be tied to carbon taxation.)
        
               | liamconnell wrote:
               | > government sequestration sites
               | 
               | Well that would drive up demand for fossil fuels and
               | profits for extraction companies, leading to more
               | extraction. Is this a real idea (proposed policy in a
               | country) or just something you wrote down?
        
             | landemva wrote:
             | > tax carbon or the externality of emissions more.
             | 
             | Start first with usage of private jets or TV sets?
        
               | vkou wrote:
               | Start by taxing carbon by the pound, and let the market
               | figure out how to optimize around it.
        
           | [deleted]
        
       | otabdeveloper4 wrote:
       | No kidding? Wow, who could have predicted!
        
       | anigbrowl wrote:
       | Wait, financialization isn't the solution to every problem?
       | Shocker
        
         | amelius wrote:
         | What if we didn't use plain old finance to solve the problem,
         | but used smart contracts that can be traced down to the
         | originator of the problem, then fine the entire responsible
         | chain if there is a violation?
        
           | Ensorceled wrote:
           | Or, hear me out, what if we just used the plain old contracts
           | that already exist... this article came out of an
           | investigation of plain old contracts.
        
             | amelius wrote:
             | Plain old contracts != smart contracts
        
               | Ensorceled wrote:
               | That's my point, this could be accomplished with plain
               | old contracts ...
        
         | DocTomoe wrote:
         | It would be, if people were actually willing to put their money
         | where their mouth is and invest some of their own cash to take
         | certificates off the market.
         | 
         | Apparently, people are unwilling to do so in meaningful
         | numbers.
         | 
         | Ergo: They do not see this as an actual problem, which means
         | problem is solved. We just need to accept that.
        
           | anigbrowl wrote:
           | But carbon credits were never marketed as a way for people to
           | retire carbon debt - they were presented as a way to
           | implement the 'polluter pays' principle using the 'proven'
           | mechanisms of the market.
           | 
           | I do think markets are a very useful social technology for
           | allocating resources. But they can also be abused for
           | distributing liability and they're slow. There's a reason
           | most polities abandon the market model for urgent tasks like
           | firefighting.
        
             | DocTomoe wrote:
             | In all fairness, that sounds a lot like "The citizenry is
             | too stupid to get it, so now we force our will upon them."
             | or, and that's even less charitable, "the section of the
             | citizenry that wants carbon emission deceleration does want
             | others to pay for it."
             | 
             | At some point, I think we need to decide if we want to
             | continue the world trying to be democratic, or if we want
             | more-or-less benevolent, eco-dictatorships.
        
       | crackercrews wrote:
       | > These days, the cost of generating electricity from such
       | sources (wind/solar) is roughly on par with that of fossil fuels.
       | 
       | I've never seen a cost analysis that takes into account the
       | unreliability of sources that rely on sun or wind. I don't know
       | exactly how a proper model would account for these factors, but
       | surely ignoring the unreliability isn't the right answer.
        
         | smileysteve wrote:
         | Do you demand with downtime for coal, for fixing the shoot? The
         | scrubber? The ash removal?
         | 
         | Or for hydro? With dam work? Generator replacement (explosion
         | at Hoover dam this year)
         | 
         | Or nuclear, for fuel rod changeouts?
         | 
         | While solar has more nightly downtime at non-peak demand, both
         | wind and solar are often configured in volumes and geo
         | distributions that reduce maintenance outage (a function of
         | lower output per unit)
        
           | crackercrews wrote:
           | All of these examples sound like they can be scheduled. You
           | cannot schedule the sun and wind. You can predict the sun of
           | course and it's nice that it sometimes lines up with peak
           | usage.
        
         | ZeroGravitas wrote:
         | What do you mean by unreliability?
         | 
         | One of the reasons that solar projects are so easy to finance
         | is because of their predictability and the fact they can be
         | accurately predicted to correlate with peak demand periods
         | years in the future.
         | 
         | You only hit problems when you are no longer burning fossil
         | fuels and so have no more to turn off. And that's a good
         | problem to have.
        
           | xboxnolifes wrote:
           | They are reliable only on average and on long time scales. On
           | one particularly abnormal weather day, do you just say:
           | "sorry, we only have 50% power today".
        
           | crackercrews wrote:
           | > What do you mean by unreliability?
           | 
           | I'm referring to the fact that the wind is not reliable or
           | even predictable. The sun is more predictable, but weather
           | can greatly affect solar power generation.
           | 
           | It is nice that the sun is up during part of daily peak
           | demand and is strongest during the season when AC is heavily
           | used. But IIRC peak demand happens several hours after solar
           | panels are generating peak energy.
           | 
           | > You only hit problems when you are no longer burning fossil
           | fuels and so have no more to turn off. And that's a good
           | problem to have.
           | 
           | The point is that if you are looking at the cost of building
           | a solar or wind farm you have to account for the fact that
           | you cannot shut down another power source one-for-one.
           | 
           | If you have to pay for the new source and keep the old source
           | online then the new source is by definition not the same
           | price as the old source.
        
             | ZeroGravitas wrote:
             | > But IIRC peak demand happens several hours after solar
             | panels are generating peak energy.
             | 
             | No, peak 'net demand' happens later, because solar has
             | reduced the actual demand peak. This is like saying "eating
             | food just made my hunger peak later"
             | 
             | > If you have to pay for the new source and keep the old
             | source online then the new source is by definition not the
             | same price as the old source.
             | 
             | Yes, but the old source likely has high fuel costs, so when
             | you stop burning the fuel, you not only save carbon and
             | pollution, you save money.
             | 
             | This isn't particularly complicated.
        
               | crackercrews wrote:
               | Your first claim seems plausible, but apparently is
               | wrong. Peak demand appears to be after noon all over. In
               | some places it's several hours after. [1]
               | 
               | Your second point doesn't make any sense because the cost
               | of fuel is already factored into the original analysis
               | that supposedly equates the cost of renewable and non-
               | renewable energy generation. If you want to mention that
               | cost again, then I would mention again that supply
               | crunches raise the cost of construction of solar and wind
               | farms. All of these costs were already accounted for so
               | it doesn't make sense to bring them up again.
               | 
               | 1: https://www.eia.gov/todayinenergy/detail.php?id=42915
        
               | ZeroGravitas wrote:
               | The grid reported peak doesn't include home rooftop or
               | other behind-the-meter solar, that's why the California
               | grid demand peak has shifted later over the last few
               | years, as well as (but not as much as) the net peak that
               | doesn't count the utility scale solar.
               | 
               | You can also choose when you want the peak to occur to
               | some degree, by positioning your panels in both location
               | and direction. Semi-random alignment combined with solar
               | noon happening over a hour for a timezone means the
               | 'peak' is often rounded and flattened, and shifted in the
               | direction of the solar compared with the load.
               | 
               | e.g. if you have a coastal area with demand on the coast
               | and utility solar mostly inland, then you get a different
               | timeshift between load and supply depending on where the
               | coast is positioned in a West-East direction.
               | 
               | I'm not sure what you're trying to argue regarding price,
               | but since renewables are cheaper than even running
               | existing fossil fuel plants, I'm not sure it matters.
        
               | crackercrews wrote:
               | Imagine a salesman comes to your door selling residential
               | cellular internet. He says it will cost the same as your
               | existing wired internet, and will offer the same speeds.
               | 
               | The benefit is that it will have a lower carbon footprint
               | because the ISP's power is provided exclusively by wind
               | and solar. The downside is that it will only run when
               | there is wind power or solar power available.
               | 
               | Would you make the switch?
        
               | ZeroGravitas wrote:
               | We dont need weird analogies, We're rolling out
               | renewables across the world, at an astounding pace
               | because its cheaper and better, and continues to get
               | cheaper and better.
        
         | Ensorceled wrote:
         | This is only an issue once we stop having electricity sources
         | that can be turned on reasonably quickly when wind or sun is
         | under producing (such as natural gas and, to some extent, hydro
         | electric).
         | 
         | Since wind/solar is still a small part of the overall
         | contribution, there is no need to model unreliability.
         | 
         | Ideally this would BECOME an issue in the future.
        
           | crackercrews wrote:
           | Ask the western US if it is an issue right now. If you don't
           | hear back it's because their power is out.
        
             | Ensorceled wrote:
             | I didn't realize California etc. had hit the level of
             | dependency on solar/wind where this could be a factor. Good
             | on them.
        
               | crackercrews wrote:
               | The people who lost power and couldn't cool themselves
               | down in 100 degree weather might not agree with your
               | congratulations from afar. They might also not like that
               | their energy costs are dramatically higher than even in
               | neighboring states.
               | 
               | But if it makes you feel better, I guess that makes it
               | all good, right?
        
               | Ensorceled wrote:
               | I was being sarcastic. California gets 17% of their
               | electricity from solar and 8% wind, but their current
               | issues are during a sunny heat wave so solar should be
               | going like gangbusters.
        
       | mltvc wrote:
       | There are a lot of valid criticisms to be made about the
       | voluntary carbon market but at least it's something that is being
       | done right now.
       | 
       | At Sylvera, a carbon offset rating agency, we create very
       | thorough analyses of all projects issuing offsets. Based on
       | scores for carbon score, additionality and permanence we create
       | ratings that buyers can trust to avoid being scammed. This
       | transparency is fundamental to the functioning of this market.
        
       | 2OEH8eoCRo0 wrote:
       | Tax fuel sources by amount of carbon dioxide that they release.
       | It will increase the cost of electricity generated from those
       | sources and discourage their use. Use the tax money to fund green
       | energy research, green energy production, carbon capture, etc.
       | 
       | Don't fight the market, act on the source and the market will
       | adjust.
        
       | rizoma_dev wrote:
       | At some point knowingly engaging in this type of behavior should
       | be considered a crime against humanity
        
       | not2b wrote:
       | John Oliver did a great piece on this:
       | https://www.youtube.com/watch?v=6p8zAbFKpW0
        
         | sschueller wrote:
         | It's like the WSJ watches Oliver then spends a week or two to
         | write an article on the exact same issue. From what I recall
         | this is the second time now.
        
       | layman51 wrote:
       | This reminds me that I had seen some other article about how
       | sometimes, projects to plant a bunch of new trees are not
       | successful because of maintenance or upkeep costs that may not
       | have been thought out.
        
       | david422 wrote:
       | I installed solar panels on my roof and one of things you can do
       | is then sell your home carbon credit on the market to some buyer.
       | 
       | Which basically means that while you are still offsetting carbon
       | by generating solar on your roof - since you've sold your share -
       | that morally you are still responsible for your carbon footprint.
       | 
       | I opted not to sell mine. It wasn't worth a ton of money and part
       | of the reason I got solar anyways is to reduce the carbon
       | footprint. It also seemed crazy to me that this was even an
       | option that existed.
        
       | jonas21 wrote:
       | Overall, I struggle to see how this is a bad thing. Take the
       | example at the start of the article:
       | 
       | 1. Two decades ago, the UN set up a program for selling voluntary
       | carbon credits under the assumption that renewables would not be
       | price-competitive for a very long time, if ever, and would
       | therefore need a subsidy.
       | 
       | 2. Companies started buying those credits, even though they
       | didn't have to, just to look good to consumers. As a result, the
       | subsidy didn't cost taxpayers a dime.
       | 
       | 3. Renewable technology developed faster than expected (in part
       | due to the subsidy). Now renewables are competitive with fossil
       | fuels and projects would be built even if companies didn't buy
       | the credits.
       | 
       | People should be absolutely thrilled by this outcome.
        
         | yccs27 wrote:
         | The program itself, with the intention and success of making
         | renewables competitive, is absolutely a good thing.
         | 
         | It's just not working quite as well as it could, because offset
         | companies cheat. Carbon offsets now don't really help with the
         | climate, and their price doesn't reflect the real cost of the
         | emissions. And in the process, companies can present themselves
         | as "carbon-neutral" when they really aren't, and thus can avoid
         | consumer or even further regulatory actions.
        
         | rglover wrote:
         | > Now renewables are competitive with fossil fuels
         | 
         | This isn't true. They might be competitive in a shallow sense
         | (price per kWh) but in terms of benefit (specifically,
         | reliability and output capacity), they're barely a sniff--hence
         | the nightmare in Europe right now.
         | 
         | That doesn't even factor in the fossil fuels and emissions that
         | need to be expended to _create_ those renewables (which are
         | greater than the individual renewable will ever offset in its
         | lifetime).
        
           | thinkcontext wrote:
           | > hence the nightmare in Europe right now.
           | 
           | How would being more reliant on fossil fuels help them now?
           | The problem is they are struggling to import enough. If they
           | had more fossil fuel plants and less wind and solar they'd
           | have to import even more fossil fuels.
           | 
           | > That doesn't even factor in the fossil fuels and emissions
           | that need to be expended to create those renewables (which
           | are greater than the individual renewable will ever offset in
           | its lifetime).
           | 
           | False. There have been dozens of lifecycle analysis studies
           | they find a more than 10x advantage of solar and wind over
           | gas per kwh.
           | 
           | https://en.wikipedia.org/wiki/Life-
           | cycle_greenhouse_gas_emis...
        
             | rglover wrote:
             | > How would being more reliant on fossil fuels help them
             | now? The problem is they are struggling to import enough.
             | 
             | Right. That problem exists because they drew back their own
             | fossil fuel production to switch to renewables which are
             | not providing the commensurate energy required, forcing
             | them to go to outside providers.
             | 
             | > False. There have been dozens of lifecycle analysis
             | studies they find a more than 10x advantage of solar and
             | wind over gas per kwh.
             | 
             | Now do the factories to produce the components in the
             | renewables, the trucks to ship the components, the
             | equipment to install the components, the trucks to get the
             | workers to maintain the components, etc. Batteries? You
             | need massive trucks that can only run on diesel to mine the
             | metals necessary to make them work.
             | 
             | You're releasing insane amounts of emissions and wasting
             | tons of energy just to say you're not on paper. It's
             | absolute lunacy.
        
               | Mavvie wrote:
               | From their wikipedia link:
               | 
               | > The goal of such assessments is to cover the full life
               | of the source, from material and fuel mining through
               | construction to operation and waste management.
               | 
               | So the studies should already be including everything you
               | mentioned.
        
               | rglover wrote:
               | That still doesn't account for the scale of deployment
               | necessary to make up for the missing power requirements
               | (the entire point I'm making) which, if I had to guess,
               | would make this "10x" number irrelevant, if not
               | laughable.
               | 
               | For example, a quick check [1]:
               | 
               | > Peak power production for the coal power plant was in
               | July 2020 (719GWh) which was also the month for the
               | lowest output for wind (34.6GWh). In July, the wind
               | turbines produced just 4.8% of the power produced by the
               | coal power plant while operating at only 9.4% of rated
               | capacity. In the month of July, it would require at least
               | 3,764 similar sized wind turbines to replace the
               | electricity generated by the coal power plant which was
               | operating at just 47% of rated capacity.
               | 
               | [1] https://www.realclearenergy.org/articles/2021/08/19/c
               | lash_of...
               | 
               | I don't doubt that studies dealing in hypotheticals show
               | that it's possible, but the reality doesn't match up.
               | Solar is in the same boat.
        
               | thinkcontext wrote:
               | > Right. That problem exists because they drew back their
               | own fossil fuel production to switch to renewables which
               | are not providing the commensurate energy required,
               | forcing them to go to outside providers.
               | 
               | The North Sea was by far their biggest field for oil and
               | gas and it is in sharp decline despite continued
               | exploration. Even Norway is still exploring. The other
               | big producer was the Netherlands, they closed their gas
               | field because of earthquakes.
               | 
               | > Now do the factories to produce the components in the
               | renewables, the trucks to ship the components, the
               | equipment to install the components, the trucks to get
               | the workers to maintain the components, etc. Batteries?
               | You need massive trucks that can only run on diesel to
               | mine the metals necessary to make them work.
               | 
               | As I said, dozens of life cycle analysis studies take all
               | of this into account and come to the conclusion of a more
               | than 10x advantage.
        
       | newaccount74 wrote:
       | But isn't making renewable energy more profitable still a good
       | thing?
       | 
       | It still incentivises building wind farms quicker, and the more
       | wind farms we have the less dependent we are on gas.
        
       | asiachick wrote:
       | Of course!
       | 
       | There are toxic emissions laws that "prevent" companies from
       | polluting too much. Or rather they limit the amount each company
       | can emit. To get around that limit they just subcontracted to
       | tons of smaller companies, each one gets it's quota of emissions.
        
       | vishnugupta wrote:
       | This is exactly what happens when everything is turned into
       | money. More so when the fiat money can be borrowed from the
       | future, you are essentially kicking the can down the road.
       | 
       | What next? Carbon emission futures? A thriving market where the
       | futures are traded? All the while the emissions continue abated
       | and even increase.
        
         | short_sells_poo wrote:
         | Carbon emission futures can be traded in many developed markets
         | nowadays...
        
         | lelandfe wrote:
         | https://www.theice.com/market-data/indices/commodity-indices...
         | 
         | https://en.wikipedia.org/wiki/European_Union_Emissions_Tradi...
         | 
         | :D
        
           | ant6n wrote:
           | But can I buy these as an etf (or etn or whatever)
        
       | Tyndale wrote:
        
       | clairity wrote:
       | carbon (i.e., CO2) isn't the problem anyway, so let them waste
       | their money on virtue signaling. _pollution_ is the problem. let
       | 's focus on coal plants first, where getting rid of the top 100
       | polluters would already palpably improve air (and water) quality
       | that would in turn measurably reduce death and disease.
        
         | loeg wrote:
         | Carbon is definitely _a_ problem.
        
       | black_13 wrote:
        
       | kisamoto wrote:
       | If you're a small business struggling to understand carbon
       | offsets and removal I'll be happy to help.
       | 
       | I run https://carbonremoved.com/ for individuals and we're
       | beginning to work with businesses too.
       | 
       | Email me at "ewan@" the domain above if you'd like to take real
       | action towards net zero.
        
       | hedora wrote:
       | Are there any carbon offset programs that actually do reduce
       | atmospheric carbon?
       | 
       | Is there some sort of reputable certification board in this
       | space?
       | 
       | John Oliver had a great piece looking at the industry (linked
       | elsewhere here already), but didn't provide much actionable
       | advice. (Other than to never give The Nature Conservancy any
       | money under any circumstances.)
        
       | neonate wrote:
       | https://archive.ph/InZpI
        
       | outside1234 wrote:
       | We have to stop considering these offsets as having any virtue.
        
       | tppiotrowski wrote:
       | > Transactions like this undercut the basic concept behind carbon
       | offsets--that they should fund green projects that wouldn't be
       | possible without the additional cash they bring.
       | 
       | Is this really the basic concept? I thought it was meant to
       | deliver carbon cutting at the cheapest cost. Redesigning a Delta
       | airlines jet to be electric or make the engine more fuel
       | efficient is $$$$. Now, there is a village in India that uses a
       | coal power plant. It's cheaper for Delta to build a solar power
       | plant in India, shutdown the coal plant, and claim all the carbon
       | output they've reduced in India then to try and build a new
       | airplane.
       | 
       | Capital is therefore efficiently allocated to whatever carbon
       | cutting project is the cheapest, therefore maximizing carbon
       | reduction per dollar spent.
        
         | opportune wrote:
         | Since delta is paying to convert a coal plant to a solar plant,
         | carbon offsets create perverse incentives like allowing you to
         | "sell" or hold hostage something you were going to do anyway,
         | keep inefficient things around so you can sell offsets lager,
         | or start off doing something inefficient or bad so someone can
         | pay you to stop.
         | 
         | For example, as a fisherman it might be cheaper for me to buy
         | some old, shitty, super-polluting boats, run them around for a
         | bit generating huge amounts of emissions, and then go shopping
         | for offsets. With the offsets I buy nicer boats that don't
         | pollute as much. But without the offsets I might have either
         | not been fishing at all or gone straight for the nicer boats.
         | 
         | Basically, carbon offsets in theory allocate carbon savings
         | where they are most effective financially, but in practice
         | create structural inefficiencies (incentivized to start
         | polluting to fix it). Also, they are prone to double counting.
         | If I open a wind farm partially funded by carbon offsets, if I
         | claim that the farm is removing as much CO2 as it actually
         | saves, I'm double counting along with whoever paid for the
         | offsets to be "carbon neutral" when there is indeed still a net
         | amount of carbon being put in the atmosphere
        
           | beambot wrote:
           | You need to maintain a separate set of accounting books
           | alongside all assets to track net carbon offsets. E.g., in
           | your boat example: The negative carbon offset balance needs
           | to get attached to the boat, so that subsequent owners cannot
           | claim the same benefit. Then there should be a threshold date
           | at which assets get their offset balance zeroed.
        
             | opportune wrote:
             | That sounds good but it probably wouldn't work in the
             | developing and undeveloped world. Also, it doesn't stop the
             | problem of new things being made because they have a floor
             | price set by carbon offsets. A new polluting asset becomes
             | more valuable when it has a fixed rebate for
             | decommissioning it. You can scrap my old shitty polluting
             | boat but I can probably just buy a new shitty polluting
             | boat
        
             | njarboe wrote:
             | Let's just have a CO2 tax already. Revenues given back to
             | the people directly split evenly per person.
        
           | ajross wrote:
           | > perverse incentives like allowing you to "sell" or hold
           | hostage something you were going to do anyway
           | 
           | This is true, but it's a weird way to frame it. Yes,
           | absolutely: carbon-sensitive regulation changes the market
           | pricing such that less polluting activities and means of
           | production are "worth more". So if you have some, you win. If
           | you were planning on having some in the future ("were going
           | to do anyway"), you likewise get a windfall.
           | 
           | And thats... good? It's not perfect. But it produces the
           | result we want.
           | 
           | IMHO the much bigger problem with offset regulation is that
           | it's likely to be nearly impossible to actually measure[1]
           | and we'll be dealing with cheating and fraud for decades. But
           | the incentives seem fine to me.
           | 
           | [1] Vs. a carbon tax which is pure simplicity: $xxx per ton
           | of carbon (for extra credit: a floating price based on a
           | dynamic bid-based sequestration market) pulled out of
           | nonrenewable sources, paid by the extractor at the time of
           | initial sale, and let the market sort out how to allocate the
           | overhead.
        
             | JacobThreeThree wrote:
             | Who gets to decide what the carbon footprint of every
             | activity is? How is the surveillance of every activity
             | performed? What is the performance metric to evaluate the
             | success or failure of the system?
        
               | ajross wrote:
               | The third question has an obvious answer, so I'm not sure
               | I get your point. The first two are just saying
               | "regulation is hard", and I agree. But it's possible
               | nonetheless, just like every other regulated industry.
               | 
               | Recognize that all your questions could have been asked
               | about, say, sulphate emission regulation in the 1970's.
               | (Or CFC's in the 90's). And that worked out OK.
        
           | crackercrews wrote:
           | Like the Great Hanoi Rat Massacre. [1] You get what you pay
           | for!
           | 
           | 1: https://www.atlasobscura.com/articles/hanoi-rat-
           | massacre-190...
        
             | andai wrote:
             | Other examples include India had a bounty for snakes, so
             | people started snake farms.
             | 
             | My favorite one though is about the British paying China
             | for dinosaur fossils, but they paid per _fragment_ , so
             | (naturally!) entire fossils were smashed into many small
             | pieces.
        
           | gumby wrote:
           | > For example, as a fisherman it might be cheaper for me to
           | buy some old, shitty, super-polluting boats,
           | 
           | At the level of an individual, yes.* However consider a fleet
           | of cargo ships. They last, and depreciate, over about 20
           | years. Even if the owner buys newer, cleaner ones, they
           | aren't throwing away the old ones, and the one bought today
           | will stay in service until around 2042. It's not unreasonable
           | to offset this ancient cap ex, especially if governments
           | _also_ ramp up regulation so the economics for the oldest
           | /worst of continued use vs scrapping make them uneconomic.
           | 
           | In a utopian sense this is clearly worse than just replacing
           | all the polluting equipment, but in the real world a "big
           | bang" solution can't work, not the least because there isn't
           | enough shipbuilding capacity to replace the entire fleet
           | overnight.
           | 
           | The ethics of offset vs removal credits, and the whole offset
           | credit market is a complex and sorry situation and this
           | article just scratches the surface. OTOH one reason it's so
           | marginal, despite the efforts of some people (including Verra
           | and Gold Standard) to make it better, are largely because
           | credits of any non-mandatory size are barely used (about $1B
           | traded last year) so there's little incentive to clean it up.
           | Hopefully that is in the process of changing; the market is
           | growing and prices are rising faster than the market is
           | growing indicating that demand is increasing.
           | 
           | * At the consumer level this is all awful. Remember when
           | Obama did "Cash for clunkers" to get polluting cars off the
           | road? You couldn't get the credit unless you bored a hole in
           | the block and injected some epoxy. In Germany they had a
           | similar program, but just took the old cars and shipped them
           | to LDCs in Africa where they could continue to pollute, just
           | someplace else. Or for aging luxury cars, some nefarious
           | companies would send them across the border into Poland and
           | then smuggle them back in and get the credit another time.
        
         | padjo wrote:
         | Funny, I thought the basic concept was that they allow
         | westerners to tick a box and mitigate the guilt they feel from
         | living ludicrously unsustainable lifestyles.
        
         | russdill wrote:
         | In theory, it's great. In practice perverse incentives and
         | little to no regulation make it worthless. A John Oliver
         | explainer:
         | 
         | https://www.youtube.com/watch?v=6p8zAbFKpW0
        
           | hinkley wrote:
           | The spoof offsets he sells at the end of that segment have
           | already sold out:
           | 
           | https://www.oliversoffsets.org/
        
           | gremlinsinc wrote:
           | Side tangent. John Oliver is amazing at using comedy to
           | basically blow the whistle on a lot of shitty things
           | happening in this country.. from the way truckers are treated
           | and basically exploited, to drinking water crises, and
           | everything in between. Jon Stewart did a lot of this too, and
           | was great. I heard once people who get news from shows like
           | the Daily show, Late shows or John Oliver type shows actually
           | are more 'informed' about current events than those who watch
           | Fox, MSNBC, CNN, or even just local nightly news on NBC or
           | CBS.
        
             | uoaei wrote:
             | That's true, and popularizing knowledge is important.
             | 
             | What's also true is you get only a specific worldview and
             | consequent narrative from these kinds of shows. They have
             | convergent ideologies and parrot a single, totalizing, pro-
             | capital, -moderation, -individualist method for solving the
             | problems stated as such. It's great if you've drunk the
             | Kool-aid but it does paper over a lot of prescient issues
             | (climate change, culture war, etc.) on the assumption that
             | they will be solved by emphasizing politicking and de-
             | emphasizing economicking.
        
         | hinkley wrote:
         | When the Catholic Church did this in the Middle Ages, they were
         | called 'indulgences' and they ended up being a license to sin,
         | which it turns out is a very bad idea.
        
       | kyleblarson wrote:
       | File this one under "completely unsurprising".
        
       | liamconnell wrote:
       | I go back and forth on the push for carbon neutrality for large
       | companies (as opposed to some form of carbon tax). I'll give a
       | few examples that I've seen first-hand in my work as a
       | consultant.
       | 
       | 1. A large state-owned African agricultural company is using
       | satellite and soil-sample data to measure the carbon
       | sequestration potential of agricultural land if certain farming
       | techniques are used (no-till, etc). They use satellite and soil-
       | sample data feeding into a biological model implemented in
       | fortran (from some academic paper that may or may not be
       | replicated) for the estimation. The plan is to go to farmers and
       | ask them to switch the technique. The company would sell carbon
       | credits, give the participating farmers a cut and keep the rest.
       | This has great potential! but the large-scale implementation is
       | very difficult manage. The company would at least need to
       | randomly check in on participating farmers. It should also take
       | soil samples over time to make sure the technique is working.
       | Carbon credit sellers should be auditable, but the government
       | relations and size of the company might make that difficult to do
       | rigorously.
       | 
       | 2. An analytics tool hopes to help large companies identify the
       | parts of their supply chain that can reduce the overall carbon
       | emissions of a product with the lowest price increase to the end-
       | consumer. Think about BMW sourcing steel from China for example.
       | If this helps companies actively manage their supply chain in
       | order to lower emissions, then suppliers will adopt to low-carbon
       | techniques over time. The problem is that it requires suppliers
       | to disclose their emissions accurately. Many supply chains in
       | carbon-intensive industries are global and fragmented. If a bad-
       | actor supplier on the other side of the world lied and got
       | caught, they could just change their name and carry on.
       | 
       | 3. Global supply chains also present issues with carbon taxes at
       | the drilling/mining site. You can't force foreign countries to
       | tax this (and if you did they would be incentivized to cheat),
       | and you can't force foreign companies to accurately disclose
       | energy use. A domestic energy tax would make local manufacturing
       | uncompetitive, which is something most countries are not willing
       | to sacrifice.
       | 
       | The debate between carbon neutrality vs carbon/extraction taxes
       | is the choice between inventing an entire new bureaucracy of
       | enforcement (carbon audits, carbon disclosure, etc) or the
       | impossible task of rallying and enforcing global action (every
       | country imposes the same tax, no exceptions). As an engineer, I
       | understand the seeming beauty and efficiency of the second
       | option, but I think the first is ultimately going to be our best
       | bet.
        
         | newaccount74 wrote:
         | > A domestic energy tax would make local manufacturing
         | uncompetitive
         | 
         | That's what tariffs are for? Products from countries that don't
         | tax carbon could just get a carbon tariff added on import.
        
           | liamconnell wrote:
           | Great point. This would be great for a net importer country
           | like the US. Germany (net exporter) wants their goods
           | competitive abroad.
           | 
           | On the other hand, if the US and other high-consumption
           | countries collaborated on this it would probably be
           | effective.
           | 
           | Like I said, I go back and forth on it. Or better put, I
           | think both approaches are valid albeit with big
           | implementation challenges.
        
             | yorwba wrote:
             | > This would be great for a net importer country like the
             | US. Germany (net exporter) wants their goods competitive
             | abroad.
             | 
             | Ironically, Germany has a fuel tax https://www.gesetze-im-
             | internet.de/energiestg/__2.html that is 4 times as high as
             | that of California https://www.foxla.com/news/californias-
             | gas-tax-goes-up-july-... , which apparently has the highest
             | fuel tax in the US.
        
           | colinmhayes wrote:
           | Destroys the countries export potential to countries that
           | don't have a carbon tax or are willing to import from
           | countries that don't.
        
       | Tarsul wrote:
       | we should be real here: The idea of carbon credits/certificats is
       | better than doing nothing as generelly these steps should help
       | (better to put money where it could be worthwhile than where we
       | know it ain't). Where it doesn't help, we have journalists and
       | other organisations that show this (like in this example), so
       | that the bad apples can be separated from the good apples. What
       | really counts is the following: Having the right aim, listening
       | to concerns and changing course where necessary. What doesn't
       | help is unnecessary cynism (and drive-by posting). And of course
       | we can gain the most if our politicians are using adequate
       | incentives.
       | 
       | As for the certificates from Gold standard: They also have
       | recycling projects, reforestation (yeah, i know that the
       | discussion about this is ongoing as well!) and some programs
       | where poor people are helped with appliances that are less
       | environmentally damaging. Everyone can invest in whatever project
       | one wants. We can argue about which of these programs help the
       | most (especially since we don't really differentiate between
       | carbon reduction, carbon sinks and carbon capture), BUT what
       | counts is that we, as people of this planet, are trying and
       | improving.
        
         | pas wrote:
         | > what counts
         | 
         | both counts. intent and efficiency (results).
         | 
         | the big problem is that there is no agency that would fine/sue
         | the shit out of these scams.
        
       | rmolin88 wrote:
       | John Oliver recently did an episode on this:
       | 
       | https://youtu.be/6p8zAbFKpW0
        
       | tech_tuna wrote:
       | Carbon offsets are like recycling plastic. The better alternative
       | to recycling plastic is not producing and buying stuff made out
       | of plastic in the first place.
        
       | Cyberdog wrote:
       | I'm selling carbon credits too, by the way. If you want to be
       | absolved of your sins of pollution, just send me money and I'll
       | email you an official Cyberdog Planetary Salvation Certification.
       | It's very easy. I'll use all funds to plant trees or whatever,
       | minus obligatory administration fees (don't worry about it). Just
       | ping me with however many credits you need and I'll send you my
       | CashApp tag or Dogecoin wallet address.
        
         | UmbertoNoEco wrote:
        
         | loeg wrote:
         | > I'll use all funds to plant trees or whatever,
         | 
         | It's even dumber than that. You just have to promise _not to
         | chop down_ some existing trees that you would chop down in the
         | absence of payments. Nevermind if you really would chop them
         | down or not. Or if you 've already sold the same promise on the
         | same grove of trees to another buyer.
        
         | vorpalhex wrote:
         | Can you throw in a Lordship of an EU country or name a star
         | after me?
        
         | HideousKojima wrote:
         | Funnily enough, someone did more or less what you did a few
         | years back (but as actual fraud).
         | https://www.washingtonpost.com/local/crime/renewable-fuels-f...
         | 
         | A guy was literally making up RINs (renewable identification
         | numbers) in a spreadsheet and selling them to companies as
         | renewable energy credits. The only reason he got caught is
         | because he was buying a bunch of sports cars and leaving them
         | parked all over his neighborhood, leading his neighbors to
         | assume he was a drug dealer.
        
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