Offsetting

Offsetting, in the context of climate mitigation, involves a specific process wherein greenhouse gases are emitted in one location, while in another location, a climate protection initiative is implemented, resulting in the avoidance of emissions with an equivalent climate impact. This practice effectively maintains the global greenhouse gas emissions at a constant level, as the emissions generated in one area are counterbalanced or “offset” by emissions reductions elsewhere.

The concept of carbon offsetting is effective because, from a climate perspective, the specific location of greenhouse gas emissions or reductions holds less significance. What matters is the collective concentration of climate effective gases in the atmosphere. This fundamental distinction sets climate change apart from other environmental issues, which may be more geographically confined, such as water or air pollution.

However, it is imperative to acknowledge that while offsetting emissions is a valuable contribution to climate protection, it is not a comprehensive solution. What is fundamentally required is a substantial reduction in global greenhouse gas emissions. We encourage you to be an active participant in this endeavor. Klima-Kollekte assures that the funds you allocate for emissions compensation are utilized to offset an equivalent amount of CO2 through climate protection projects. These projects adhere to rigorous standards, achieving not only reductions in greenhouse gas emissions but also enhancing the quality of life for local communities and promoting on-site development.

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Offsetting for Individuals

Everyday activities, be it air travel for vacations or your annual electricity consumption, contribute to CO2 emissions. Determining your carbon footprint is a straightforward process with our calculator. You can easily complete your offset payment online through PayPal, credit card, instant bank transfer, or via invoice. With dedicated usage account, you can conveniently monitor your emissions and offsets. Upon offsetting your CO2 emissions, we will furnish you with a certificate acknowledging the carbon emissions offset and a donation receipt, as your contribution to climate protection qualifies as a tax-deductible donation.

What does offsetting cost?

The price associated with offsetting one ton of CO2 is contingent upon the expenses involved in mitigating emissions elsewhere. The funds you provide to Klima-Kollekte for offsetting serve to support various initiatives, including the financing of the additional costs incurred in the transition from fossil energy sources to renewable alternatives.

The cost, subsequently the price per ton of CO2, hinges on several factors, including the project’s scale, the technology employed, and the geographical location of the endeavor. For instance, the expense of saving one ton of CO2 through the implementation of biogas facilities in India differs from that of a solar thermal project in Czech Republic or the introduction of energy-efficient stoves in South Africa. Typically, larger projects tend to have a lower cost per ton in comparison to smaller ones.

Due to the complexity of calculating individual prices for each offset payment, Klima-Kollekte simplifies the process by establishing an average rate of €25.00 per ton CO2e, encompassing administrative expenses.

How offsetting works

Development of voluntary carbon markets

The development of voluntary carbon markets, spanning the transition from the Kyoto-Protocol to the Paris Agreement, holds a significant interest for Klima-Kollekte, an offset fund actively participating in this dynamic arena. In the subsequent discussion, we aim to shed light on the current state of affairs, emphasizing that the ultimate trajectory remains uncertain.

Under the Kyoto-Protocol, the primary obligation for emission reduction was placed on developed nations, whereas the Paris Agreement ushered in a collective commitment among all countries to curtail greenhouse gas emissions. The Clean Development Mechanism (CDM) permitted developed nations in the Global North to claim emission reduction credits through investments in projects situated in countries of the Global South. As of the close of 2021, the CDM framework was phased out.

However, at the 2021 Climate Change Conference (COP26) held in Glasgow, nations reached a new consensus through Article 6, introducing innovative market mechanisms that succeeded the CDM. This agreement has implications for voluntary offset markets as well. Emission reductions achieved by climate protection projects in one country can now be transferred and counted towards the Nationally Determined Contribution (NDC) of the recipient nation. This transfer necessitates a corresponding adjustment (CA) by the project country, involving the subtraction of the sold emission reductions from its own emission footprint. This process effectively prevents double counting, as the emission reduction are attributed to only one country. The prerequisite for such transfer is the authorization of the project country.

Questions on compensation

"What share of the revenue flows into the project work?"

Cost distribution per certificate

Pricing structure change of one tone CO2. 25 Euro per certificate, 20 Euro flow into our projects, 3 Euro into project support, consultation, advertising and administration, 1 Euro into the education fund and 1 Euro into the future fond of the Klima-Kollekte.

Pricing structure change:
The price per ton remains at 25 Euro. But we suspened the fund for micro-scale projects for two years, because we have to record project-specific delay due to the COVID-19 pandemic and the resulting limited travel. In November 2022 this decision was made at the shareholders' meeting. The current level of funds secures the micro-scale projects known to us at this point in time. Nevertheless the Extra-Euro will remain: This revenue is a separate reserve for investments to be prepared for necessary financial support, which exceeds the current level of the fund for the micro-scale projects. We use the vast majority of funds we receive (approx. 88%) for project work and merely 12% for administration and public relations.
 

"How is the price calculated?"

The price for offsetting one ton of CO2 results on the one hand from the implementation of the climate protection projects and on the other hand from external reviewing and verification of the emission reductions by Gold Standard. The amount of the costs depends on the size of the project, the technology used and the country in which the project is implemented. The trading of certificates on the markets also influences the Prices.

"Is the price for offsetting one ton of CO2 linked to the CO2 price of the Fuel Emissions Trading Act?"

 

No, our price is not linked to the Fuel Emissions Trading Act. Why not?
Under the european emission trading scheme, the sectors heath and mobility are not included, so there is a national initiative to introduce a own price and trade for these sectors. The Fuel Emissions Trading Act is a part of the mandatory market, while we are operation in the voluntary marktet for emissions trading. The price set in the Fuel Emissions Trading Act is supposed to increase from 25 Euros to 55 Euros by 2025 - our price is not.

"Is the price covering the cost of climate change?"

The cost of climate change are all direct and indirect cost caused by climate change. Besides direct cost, for example flood damage, harvest failures due to drought an extrem weather events, also indirect impacts are priced in. Indirect cost are health issues, impacts to biodiversity, change in land use, migrant and refugee movements resulting from limited resources, flooding and on-going droughts, which take away economic use of these regions. 

A precise scientific figure of the price is quite complex. However the impacts of climate change are increasingly quantified. The German Enviroment Agency (Umweltbundesamt - UBA)1 quantifes one tonne of CO2 a round 698 Euro. 

At Klima-Kollekte, the price for one ton of CO2 is derived from the average costs incurred in the implementation of climate protection projects, including certification. Also the micro-scale project are getting funds, which are often more cost-intensive in the development. In addition, one Euro of the ton per price flows into the educational work of Klima-Kollekte to foster dedication to climate protection.

1www.umweltbundesamt.de/daten/umwelt-wirtschaft/gesellschaftliche-kosten-von-umweltbelastungen

„Does the Klima-Kollekte run an indulgence business?“

No, because the Klima-Kollekte takes the position that no one can do justice to God through pious acts or the payment of money. The grace and love of God are an encouragement for the Klima-Kollekte and its partner houses to act responsibly before God and towards fellow human beings and the creation. The Klima-Kollekte does not claim to stand any better before God and man. Nevertheless, for us the compensation - after the steps of avoidance and reduction - is a step to more Christian responsibility, to the preservation of the creation and to more climate justice.

Questions about the calculator

Klima-Kollekte uses the CO2-calculator from KlimAktiv, which is a non-profit privat limited company (gGmbH). KlimAktiv designed the software and is responsible for its further development and the distribution of the tool.
The emission factors are based on the latest scientific findings. The factors were developed by KlimAktiv gGmbH and ifeu (dem Institut für Energie- und Umweltforschung Heidelberg gGmbH).

"What is special about our CO2-calculator?"

  • The emission factors used by the CO2-calculator are based ont the latest scientific findings.The factors were developed by the non-profit private limited company KlimAktiv (gGmbH) and ifeu (Institut für Energie- und Umweltforschung Heidelberg gGmbH).
  • The factors are updated yearly by KlimAktiv.
  • The CO2-calculator was developed for the German Enviroment Agency (Umweltbundesamt - UBA) and the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection and it is used by them. 
  • Besides CO2, the calculator takes all other greenhouse gases from the in 1997 resolved Kyoto Protocol into account, e.g. Methane and nitrous oxide. All relevant greenhouse gas emissions are converted into CO2 equivalents.
  • Other CO2-calculator include only or primarily mobility. Our calculator is able to calculate more areas of our lives: you can calculate electricity consumption, thermal energy, events, paper & printed material, accommodation and diverse option of mobility like car, train or ferry.

"Where are the factors for the calculator come from?"

The calculator of Klima Kollekte is fed with data from KlimAktiv. The non-profit private limited company (gGmbH) calculates its data using data from ifeu (Institut für Energie und Umweltforschung, Heidelberg), in particular according to the Transport Emission Model (TREMOD) developed there, GEMIS, Ecoinvernt, IPPC.

"Why did Klima-Kollekte decide to cooperate with KlimAktiv for the CO2 calculator?"

"How often is the data updated?"

KlimAktiv checks their factors regularly. Once a year (beginning of the year), every factor is updated.

 

 

"Can I offset emissions from other areas besides air travel?"

  • Yes, it is important to the Klima-Kollekte to be able to calculate the emissions of other areas than air travel. Therefore, we also offer factors for the areas of energy, events (accommodation, catering), paper and printed materials.
  • Emissions can also be calculated for the use of other means of transport (car, ferry, public transport, long-distance train).
  • If you know the electricity consumption of your e-bike or e-scooter, the emissions can be calculated using our calculator in the energy section.
  • To calculate the emissions of a website, contact us.
  • We can also try to determine other areas for you that are not listed in the CO2 calculator. To do this, please send us an enquiry by email to infodontospamme@gowaway.klima-kollekte.de

"Why does the calculator also have emission factors for rail travel or the use of green electricity?"

Deutsche Bahn advertises that it is the most climate-friendly means of transport. In the ICE, passengers are even supposed to travel with zero emissions. However, from our point of view, zero emissions are not possible, because the construction of stations, the maintenance of trains and finally the disposal of rails, etc. require energy and even the journeys of the DB fleet are not completely CO2-free. Only about half of the electricity comes from renewable sources. In mathematical terms, this is sufficient for long-distance passengers, but it is also bad for the account of local trains.

The same can be said about green electricity: Where it says green electricity on the outside, it does not necessarily contain only green electricity. Our factor for certified green electricity should only be used to calculate the consumption of electricity providers with the ok-power-label or the Grüner-Strom label. All other electricity providers do not sufficiently fulfil these strict criteria, as they do not promote the energy transition, for example.

"I would like to donate to climate protection without any prior calculations. Is that possible?"

Yes, this is possible by clicking on the button "Calculate and compensate emissions now" at the bottom right of the website; a popup field "Direct compensation" opens - here you can enter a specific amount of money or a certain amount of CO2 emissions and offset them. You will also find this option in the center of the homepage, highlighted in the circular element, as well as in the start slider via the icons "Simply compensate!" and "CO2 footprint".

"The calculator cannot find my airport. What can I do?"

Try the English name of the place or search the internet for the code of the airport (IATA). If you were unable to find the German name of the destination or departure city in the calculator, please let us know at infodontospamme@gowaway.klima-kollekte.de. We will then ensure that the city is added to the calculator as quickly as possible.

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