Two factors determine the price of an offset: the
amount of greenhouse gases that is calculated for your activities, and the
price that the seller charges to offset the emissions. Different approaches to
both mean that prices vary between sellers. Planetair continuously reviews its
pricing policy in order to ensure that its customers receive the best value for
money. Planetair’s higher prices are not the result of us taking higher
margins, but of selecting only the highest-quality offset projects through
myclimate. Currently, there are several reasons that explain why myclimate
credits are more expensive than those of some of its competitors:
- Planetair’s philosophy is to provide high quality
offsets. In order to guarantee the quality and impact of the offsets it
sells, Planetair only purchases offsets that meet high criteria, including
the Gold Standard, the
strictest standard available for emissions reductions through voluntary
- Planetair also purchases CDM offsets from myclimate, which are
more expensive than VERs, but which satisfy the stringent requirements of
the Kyoto Protocol.
- Planetair and myclimate do not have forestry
projects or carbon sinks in their portfolio due to the controversy and
uncertainty surrounding the science of tree planting as a tool in the fight against
climate change. Tree planting projects are much cheaper and contribute to
diminishing the price of offsets in other suppliers’ portfolio.
- Planetair uses a multiplier of 2 to calculate the CO2 emissions equivalent of flights to account for
the effects of radiative forcing.
Not all of our competitors use this multiplier. In 1999, the United Nations Intergovernmental Panel on Climate Change recommended setting this value at 2.7. Since then, the science has evolved, and more recent findings suggest that the effect is somewhat lower.
- Planetair also takes into account the fuel
efficiency differences depending on flight distance, since short-haul
flights and those with stopovers use comparatively more fuel than