Frequently Asked Questions
Q: What is a Carbon Offset?
A: A greenhouse gas offset, also called a carbon offset, is a reduction in greenhouse gas (GHG) emission levels caused by a specific GHG reduction project. They are different from on-site reductions because they mitigate the emissions of one source (such as from your car’s tailpipe) by reducing emissions at another location. Funding flows from the original source to the offset project in exchange for the mitigated emissions.
Q: How do I calculate my carbon footprint?
A: You can use the online carbon calculators for Individuals, Businesses or Events to estimate your annual carbon footprint. For each of the three areas (household or business energy use, air travel, and auto travel) that generate carbon dioxide (CO2), you may choose to estimate your emissions based on general, readily available information, or you may choose to gather more detailed data and information and enter them into the formulas provided. View our business calculations explained and individual calculations explained pages for more information.
Q: Is my donation tax deductible?
A: Yes! Your donation for offsets goes to the Climate Trust is a 501(c)(3) non-profit organization whose primary mission is to implement high quality project-based emissions reductions and to advance sound offset policy. The Climate Trust was selected by the state of Colorado as a third party administrator for the Colorado Carbon Fund. This means that even more of your donation will go towards reducing greenhouse gases.
Q: How much does it cost per ton to purchase an offset?
A: We seek to cover our program costs, not to make a profit. The price for Colorado Carbon Fund offsets is $20 per metric ton (tax deductible). This price covers the costs of finding projects, negotiating purchase contracts, buying the offsets, certifying the project monitoring and verifying project performance, and taking delivery of and registering the offsets. Additionally, your purchases support the creation of jobs and cleaner air in Colorado.
Q: Where does my money go?
A: The money will go to support the development and implementation of greenhouse gas offset projects in Colorado. Actual costs vary from project-to-project, and high-quality offsets from our projects may cost more than some alternatives available in the market today. In these cases, our higher cost is not a result of taking a higher “margin”, but rather because of our focus on quality and environmental integrity at the project level.
Q: Can I choose which project I want to donate to?
A: Currently, the Colorado Carbon Fund does not have the ability to direct your contribution to a project of your choice, since it is difficult to anticipate precisely when and from which projects the reductions will become available. Nevertheless, all reductions from all projects meet the same high standards for quality and environmental integrity; each offset we buy and subsequently retire towards your purchase is recorded and accounted for on an individual basis.
Q: How do I know I'm making a difference?
A: The Colorado Carbon Fund makes sure projects are reducing emissions. We do this through two steps:
- before receiving our support, projects must undertake rigorous, third-party validation of the baseline case against which performance is measured, as well as of the project case for performance above and beyond that baseline; and
- after a project or program has begun operating under our contract, it is required to undergo ongoing third-party monitoring and verification of actual performance and delivery of the offsets, usually on an annual basis.
Q: How are projects chosen?
A: Quality control is an important issue for carbon offsets. In order to be sure the offset is providing a true benefit to the environment, every offset project must be held to the highest quality standards. High quality offset projects:
- Provide new or additional benefits: A high quality offset project is one that would not have happened without the specific funding provided by the purchase of carbon offsets.
- Are rigorously measured and verified: The benefits of the offset project must be measured and verified by an independent third party over the entire length of the project.
- Have lasting benefits: The effects of the offset project must be long-lasting, not temporary.
Q: Do offsets let other people pollute more?
A: No. Offsets, by definition, cancel out emissions. Therefore, while your activities, such as driving, may still result in carbon dioxide emissions, by offsetting through the Colorado Carbon Fund overall carbon dioxide emissions are reduced.
Q: Is There a Standard for Project-Based Greenhouse Gas Offset Quality?
A: Currently, there is no federal regulation of greenhouse gases in the United States that determine what is or what isn’t an offset. Several regional efforts involving states that seek to define offsets are underway. There are some voluntary certification initiatives that provide a standard for offsets. The Colorado Carbon Fund is exploring these options to determine the best fit for making sure the offsets we sell meet a credible third party’s definition of a high quality offset.