The Global Gricker Price of Co2
What is the price of Co2? How is it determined?
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. For this reason we decided to create the Global Gricker Price of Co2.
The Global Price of Gricker of Co2 is 0.10 cent USD per kg of Co2 emissions (or $99 USD per ton of Co2).
There is no global price of Co2 due to the price of Co2 varying hugely among the offset providers, governments and researchers. There is some form of consensus however that the price level should be around 100 USD for it to start make a difference
We have reviewed:
- the likely cost for actually reducing Co2 emissions
- the price for Co2 in the various Co2 offset markets
- the government
- the social cost of carbon
- what price level (for Co2) would be needed to help a change behavior (to buy Co2 friendlier devices and services).
What is the Global Gricker Price of Co2?
The Global Gricker Price of Co2 is 10 cent USD per kilogram of Co2 (equivalent to $99 USD per ton of Co2)
Why is there a Global Gricker Price of Co2?
We have created a global price of Co2 because, simply said, there is no global price of Co2. 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 int he world, has many different prices, unfortunately. This can make it very difficult and complex for end consumers.
There are many different perspective on what Co2 should cost, such as:
- 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 pricing information.
How do we determine the Global Gricker Price of Co2?
We want to keep it simple and transparent. For that reason we looked at our primary objective, help people to really reduce Co2 emissions.
Help people to reduce Co2 emissions
What kind of price level is needed to change behaviors. What price level will motivate people to switch to new more Co2 friendly products and services, etc. Research finds this to be around the $100 USD per ton Co2.
Really reduce Co2 emissions
This should reflect the cost of actual Co2 reduction, and even ideally the cost of negative Co2 emissions (‘sucking Co2 out of the air’). For this we use three perspectives:
a) We primarily look at the compliance market as they have to, legally, ensure that it actually leads to a reduction of Co2. The voluntarily market also has this aim but there is less certainty on this and a wide range of prices.
b) Research on the likely real cost of Co2 emission reductions; around
c) Price levels (long term) of promising new technologies to “suck co2 from the air”.
More information can be found here.
Based on the above we determined that a price level of $99 USD per ton of Co2 should help people to actually reduce Co2 emissions.
How is this price used?
iIn line with our aim to keep it simpel and transparant we apply a simpel formula. The cost of a Gricker is the price of Co2 times the Co2 emissions for that device.
Therefore, if the charging of a phone leads to 3kg of Co2 emissions (actual kf Co2 differs per country) then the price of a Gricker is (rounded) 3kg X 0.99 USD = $3.00 USD.
How much of the price of a Gricker do you spend on on offsetting?
As much as we can! We will spend at least 80% of what you spend on Grickers to purchase offsets from the various Co2 offset providers. The remainder is largely needed to cover the costs (creditcard transaction fees – about 5%, website maintenance, costs for legal advise, insurances, 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. For the time being however it is unlikely we will make any profit, but we keep dreaming!
So, in a nutshell, if you spend $3.00 on a Gricker, we will spend $2.40 on buying offsets from the 11 Co2 offset providers – following your preferences. The remainder (60 cent) will help cover our costs and any profits that we can reinvest to grow and reach more people.
The costs of Co2 differs among the providers, so how does that work?
We have selected about a dozen of reputable Co2 offset providers. The prices for reducing Co2 vary among them for various reasons.
Our standard 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 then we get from others. If you add it all up you wills we 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 (and not maybe – as you want to be sure!). You could choose to allocate all your Co2 offsetting to the Co2 offset with the lowest cost, so in theory you compensate the most Co2 however you also have an increased risk by depending on that sole provider.
In addition, each customer can decide for him/her how much they want to spend on each provider by selecting the preferences int the personal Co2 offset portfolio menu. We will then ensure the same % will be spend on that offset provider.
Selection of external sources on the price of Co2