Watchdog rates the greenies

Daily Telegraph
Friday 19/9/2008 Page: 91

THE Macquarie Bank-funded carbon offset group, Climate Friendly, has been named the best provider of offset products by a new watchdog for the $44 million sector. Climate Friendly's market is the small to medium-sized business sector. More than 50 companies were invited by the Total Environment Centre (TEC) to let its Carbon Offset Watch team scrutinise and compare their greenhouse gas abatement schemes, but fewer than half agreed.

Melbourne-based Climate Positive was ranked the most impressive provider from the not-for-profit groups in the survey, which was jointly conducted with consumer group Choice and the Institute of Sustainable Futures, at the University of Technology Sydney. The ranking system outlines the best carbon offsets available and will increase consumer confidence about whether the offsets they buy will be effective for reducing emissions, TEC spokeswoman Jane Castle said.

The offsets are created through the financing of projects that reduce greenhouse emissions, thus producing credits that are sold on for between $6 and $52 a carbon tonne to businesses and individuals. TEC examined the quality of the available products with those selling credits generated by the Kyoto Protocol compatible Clean Development Mechanism judged to have the highest standards, and the original Mandatory Renewable Energy Target the lowest.

Among those that declined to be surveyed were Greenfleet, ANZ and Bendigo Bank, Easy Being Green, Hydro Tasmania and Veolia Environmental Services. TEC said it was reasonable to expect that companies selling carbon offsets in the voluntary market should be willing to have their products assessed. This was particularly the case given the absence of specific legislation standards for the market, the group said. Cleaner Climate and the Southern Metropolitan Regional Council offsets scored outstanding ratings.

Power companies AGL and Origin Energy achieved good results, but missed the top ranking because some of the offsets they sold were accredited under lower scoring schemes than those offered by higher-ranked companies. Climate Positive chairman Brendan Condon said the Carbon Offset Watch site provided a transparent guide to quality offsets. "We are thrilled to be in the top band of offsetters," Mr Condon said. Choice policy officer Kate Norris said the new offset watchdog would put on notice those organisations that exploit consumers' environmental concerns. Until emissions trading is introduced, buying offsets is voluntary, via one of the 50 retailers selling carbon credits.