In recent years, the climate challenge has appeared in ever sharper relief. Some scientists now advise that to stabilise the climate we need to aim for an atmospheric CO2 concentration much below the current level. Some studies even suggest it will be necessary to stop emissions altogether. In this article, guest contributor Peter Martin, a Director of CarbonSense, expresses his doubts about carbon neutrality in general, and offsetting in particular.

Carbon Negative, Carbon Positive, and Carbon Sceptical

In 2005, CarbonSense coined the term ‘carbon positive’ and suggested businesses should count carbon; manage decarbonisation; update their business models; engage all stakeholders; and aim for low carbon leadership. Now, there are growing calls not only for ‘low carbon’ but also for a ‘carbon removal’ economy. Offsetting may appear to provide one way forward. However, the associated carbon accounting is based on a host of assumptions that do not stand up to scrutiny. Companies’ claims to be ‘carbon neutral’ often amount to little more than greenwash and this kind of conscience-salving distraction is not a sufficient aim for any responsible business.

Carbon neutrality

In the autumn of 2005, CarbonSense was commissioned by BT to write a ‘think piece’ on the subject of carbon neutrality. A growing number of companies claimed to be ‘carbon neutral’ or advanced the idea that a particular product could be ‘climate neutral’, although such claims were also the subject of some criticism. To achieve climate stabilisation, global carbon emissions need to be reduced. Offsetting appears to provide one way towards this that is economically efficient. Under the Kyoto Protocol, the carbon market provides mechanisms designed to enable investment from developed countries to help meet the needs of developing countries and deliver sustainability benefits. Outside this regulated market, voluntary offsetting offers broadly similar opportunities, and appeared laudable.

Offsetting suggested that businesses were able to see through the denial still being promoted in some quarters, identify commercial benefits from taking early action, and demonstrate the kind of leadership and corporate responsibility that could make a positive difference. The notion of a restorative enterprise, i.e. a business that aimed to not only be sustainable but also to actively help repair the natural environment, had been around for some years. Although no company had fully accomplished this, the fact that such ambitions had been expressed suggested that true leadership might involve an aim more far-sighted than offsetting and a goal more positive than neutrality. By actively engaging in the issues and developing new, decarbonising business models, a company might be able to move beyond just reducing emissions, and develop business geared towards more positive solutions.

Carbon positive

Given the limitations of offsetting, a claim of carbon neutrality based on offsetting did not seem to be a satisfactory aim for business or government. To make clear that we were concerned with a goal that was both more holistic and more ambitious, we coined the term ‘carbon positive’. There has been a rapidly growing pro-offsetting lobby formed from those making money from offsetting services. There have also been many published critiques of offsetting, the notion of neutrality and the limitations of attempting to address the climate challenge by focusing primarily on emissions. Some companies make claims about neutrality, others have eschewed offsetting in favour of more integrated strategies. The term ‘carbon positive’ is used by a wide range of organisations in various ways including some contrary interpretations. Some organisations have been using the term ‘carbon negative’.

Tipping points

The climate system is changing faster than models have predicted. Some scientists now advise that for the climate to be stabilised, we should aim for an atmospheric CO2 concentration of no more than 350ppm. That is significantly below the actual concentration of 385ppm and far below the 550ppm target of the EU. Nicholas Stern has acknowledged that, in his report to the UK Government, the pace of climate change was underestimated. Other studies have suggested that to achieve climate stabilisation it will be necessary to stop CO2 emissions altogether. There are calls for not only a ‘low carbon’ economy but also a ‘negative-carbon’, ‘carbon absorption’ or ‘carbon removal’ economy. There are demands for carbon sequestration at the point of emission and technologies that will enable carbon to be captured from the atmosphere. Questions are being raised about whether growth itself is a holy cow, about ‘post growth’ and ‘post carbon’. As Lester Brown, President of the Earth Policy Institute, stated: “We are in a race between tipping points in natural and political systems”.

Leadership

It is not yet clear whether companies sometimes promoted as climate change leaders, are reconfiguring their businesses for a carbon constrained world, or simply making marginal adjustments under new headlines. Nor is it clear whether such businesses have the flexibility to adjust or reengineer as the drive to dematerialise takes hold. Some companies have begun to test their business models against the scenarios of carbon constraint and climate change. Nevertheless, there is a risk that they will be eclipsed by new players using disruptive technologies and new organising principles. In sectors such as ICT, we have already seen the rapid growth of businesses such as Google, Vodafone, eBay and BlackBerry. Many ‘green’ start-ups are now developing propositions specifically related to carbon and climate change. Their impact could escalate as investors seek climate change-related opportunities and a carbon literate society develops.

About the author

Peter Martin is a director of CarbonSense, a think tank and consultancy providing creative climate change solutions. For more information, see www.carbonsense.com.

This complete version of this paper, with supporting references, is available as a PDF.

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