Price of Co2

There is no global price for Co2 emissions. The price for a ton of Co2 emissions vary hugely. This makes it very difficult to determine how much should be realistically spend to reduce Co2 emissions.

Realistically, about 100 USD per ton of Co2 per year. 

We looked at our primary objective: help people to really reduce their Co2 emissions. 

First, this means we need to determine the kind of price level that is needed to change the behavior of people. In other words, what price level will motivate people to switch to more Co2 friendly products and services? 

Second, we want to reflect the cost of actual Co2 reduction, and preferably the cost of negative Co2 emissions (‘sucking Co2 out of the air’). For this we took a look from three different perspectives:

  • The ‘compliance market’  for Co2 offsetting. In a compliance market, Co2 offset providers have to, legally, ensure that it actually leads to a reduction of Co2. There are various checks and balances in place to ensure this takes place. There is also a voluntarily market that has a similar aim but it is less certain as it is less controlled. In addition, the prices of the voluntarily market vary hugely; some of them are too low to be realistically true.
  • Research on the likely real cost of reducing Co2 emissions.
  • Likely cost levels of promising new technologies that can “suck co2 from the air”.

Based on the above we determined that a price level of $100 USD per ton of Co2 should be an effective and realistic price level that will help reducing Co2 emissions, with a amount of certainty.

The price of Co2 varies hugely among the Co2 offset providers, governments, researchers and companies. They all use their own assumptions, methodologies and criteria which means one ton Co2 (which is the same everywhere in the world) has many different prices, unfortunately. This can make it very difficult and complex for end consumers.

There are many different perspective on the price of Co2:

  • Carbon Offset Markets (compliance) – generally more expensive
  • Carbon Offset Markets (voluntarily) – generally cheaper but less assurances and thus more risk
  • Government taxation
  • Social cost of Carbon – also takes into account social element of Co2 offsetting
  • Carbon Pricing – price levels needed to change behaviors. Worldbank article here
  • Internal Carbon Pricing – used by companies internally by putting a cost on Co2 emissions and help determine where they will spent additional money on Co2 reductions.
  • Reviews and research on what likely the actual cost of Co2 reduction is or should be vs what some companies claim it is.

At the bottom of this page you find links to websites with more information on the above topics.

As much as we can! We will spend at least 80% of what you spend on us to purchase offsets from the various Co2 offset providers. The remainder is largely needed to cover the costs (ranging from creditcard transaction fees, website maintenance, costs for legal advise, insurancest, etc.). Since we are a social enterprise we do aim/hope to make a profit but if – or when – we do, we will reinvest almost all of that in allowing us to grow further and reach more people to reduce Co2. We believe it will be unlikely that we will make any net profit in the next few years, but we keep dreaming!

So, in a nutshell, if you spend $1.00 on us, we will spend $0.80 on buying offsets from the selected Co2 offset providers – following your preferences. The remainder (20 cent) will mainly help cover our operating costs, and any profits that we can reinvest to grow and reach more people.

We have selected 10 of the most reputable Co2 providers. Their prices for reducing a ton of Co2 vary among them for various reasons. 

Our default approach is that we spend an equal amount on each selected provider. This means that with some providers we will ‘get more’ Co2 emissions for the same amount of money, then we get from others. 

If you add it all up you will notice that we should be getting more Co2 emissions then what we advertise for. We do this as we want to be sure the offsetting takes place. 

By spreading it among multiple providers, and buying more then needed, we can virtually be sure that the offsetting takes place.

You can choose to allocate all your Co2 offsetting to the Co2 offset providers with the lowest cost. In theory you would compensate the most Co2 emissions. However, you also have an increased risk by depending on that sole provider.

With us, each user can decide for him/her how much they want to spend on each provider. We will ensure that preference is applied when buying Co2 offsets from the offset provider.

Other sources on the price of Co2

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