EasyJet has warned that the carbon offsetting market is riddled with “snake oil salesmen” determined to make excessive profits from green-minded air passengers.
The low-cost British airline has delayed the launch of an offsetting scheme for customers because of concerns about its cost. Instead, easyJet will go it alone by acquiring credits in United Nations-accredited schemes and selling them back to customers.
Carbon offsetting is one of the most popular means of atoning for CO2-generating activities such as flying or driving to work. It allows consumers to contribute to projects such as tree planting to negate the effect of their flight or commute.
Toby Nicol, easyJet’s communications director, said the company was shocked by how much money carbon offsetting firms wanted for their service. “We have been quite surprised at the percentage that the offsetting companies would like to take out of the scheme for administration costs. Between 25% and 30% of every pound put in by consumers would go into administrating the company — and that was simply too expensive,” he said.
“There are a lot of people who have dived into the market and are desperate to make a margin from it. There are too many snake oil salesmen in the business.” Nicol said buying the UN-backed carbon credits on the open market and selling them to passengers was better than turning to brokers. “It gets rid of the expensive middleman and it addresses the valid concern about whether it will make any difference to carbon emissions,” he said.
Carbon credits cost up to £7,50 a ton. “It’s a fledgling industry with high demand and yet there are no standards for the carbon credits themselves. There is no regulation in the business.” Some carbon intermediaries, however, have recognised companies’ concerns by establishing the voluntary carbon standard, set up by the International Emissions Trading Association, Climate Group and World Economic Forum.
There is also debate about the efficiency of such schemes. Scientists have warned that one of the most popular offsetting investments — planting trees — could contribute to global warming if they are planted outside the tropics, because they will trap heat and absorb carbon.
Rival airlines have disputed easyJet’s claims. A spokesperson for British Airways, which launched an offsetting scheme in 2005, said it was “not aware” of offsetting firms charging excessive fees. BA uses one of the best-known offsetting companies, Climate Care, for its scheme.
A Virgin Atlantic spokesperson said it was still considering whether to launch an offsetting programme, but it was in talks with two “bona fide” companies. “As in most industries there are a lot of companies that are not very good, but you do get one or two that are worth their salt.”
Virgin had doubts about offsetting products, he said, because its passengers already contributed to green causes through the £2billion Air Passenger Duty, proceeds from which, the government says, will be invested in environmental projects and public transport. He said the company was also investing its profits in biofuel research as part of Sir Richard Branson’s pledge to invest £1,5billion in green technology. Virgin plans to run trial flights of a biofuel-powered Boeing jumbo jet next year.
The easyJet carbon offsetting scheme will be launched in the next few months. The aviation industry has been heavily criticised by environmental groups because it is one of the fastest-growing generators of carbon emissions, accounting for 5,5% of the CO2 generated in the United Kingdom.
British airlines, including easyJet and Virgin Atlantic, recently set up a sustainable aviation body to combat the criticism and to give the industry some green credentials.
Low-budget airlines in particular have been targeted by environmentalists because they have driven a boom in air travel. British Environment Minister Ian Pearson labelled RyanÂÂair the “irresponsible face of capitalism” this year after the airline criticised the European emissions trading scheme. Ryanair and easyJet say financially successful airlines are the greenest because they can afford to invest heavily in new aircraft, which burn fuel more efficiently and therefore produce less carbon than their predecessors.
Andrew Harrison, easyJet chief executive, has called on the European Union to ban nearly 700 of the “oldest and dirtiest” jets. — Â