Energy...

Saving Energy May 16, 2008

Selling Carbon Credits on eBay—Solution or Scam?

Is the Internet Carbon Trade an Effective Means to Lower Your Footprint?

Buying and selling carbon emissions as a means to lower your carbon footprint is a trend that has significantly grown in popularity in recent years. Corporations frequently purchase carbon credits in order to offset high emissions levels, helping the carbon trade blossom into a multimillion-dollar industry. For the environmentally conscious individual, however, for whom trading carbon on the corporate level is not a feasible option, there is another alternative: eBay.

Here’s how it works: small farms and, essentially, anyone who takes the initiative to plant trees can sell carbon offsets equivalent to the amount of metric tons of CO2 consumed by the number of trees that have been planted (typically, one tree will consume between 3 and 4 metric tons over the course of its lifetime). So, let’s say you sell one tree’s CO2 consumption for twenty bucks. If each tree costs about fifty cents to plant, plus about another fifty or so cents to mail some sort of carbon certificate to your buyer, you’re making about a $19 profit before eBay and PayPal fees. That’s an enormous gain. So, by just planting some trees and advertising on eBay, you can conceivably make some serious bank, and help combat global warming in the process. Sounds great, right?

Well, not exactly. With so many people eager to join the emissions trading frenzy (and hopefully make a quick buck in the process), quality control is difficult to monitor. eBay posts promise certificates guaranteeing the authenticity of the carbon sale, but who can definitively verify whether offsets from the same tree have been sold multiple times, or that trees are being planted in proportion to sold credits at all? Further, carbon credit vending on the corporate scale is easier to regulate due to its magnitude and relative uniformity on a global level. In the private sector, however, things get more complicated. Carbon credits can be sold for as much as any SUV-driving, gas-guzzling citizen with a desire to green their life is willing to pay. Since carbon trading is a relatively new phenomenon, there is no standard in place to prevent people from getting ripped off.

In short, while buying and selling carbon credits online is certainly a novel idea, if you’re going to try it out, do so with caution. You’re probably better off just planting some trees in your backyard.

Want to learn more about carbon credits?

How to Measure and Price Carbon Credits

Carbon Footprints

The Quest for the Perfect Carbon Calculator

How Much Do Carbon Credits Cost?

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