Erik Blachford is the new CEO of TerraPass, a carbon offset company. When a consumer buys a carbon offset to offset the emissions from their driving, a trip, or even a wedding, TerraPass uses that money to fund renewable energy products.
Erik has never been a full-time environmentalist, although he is member of a few national organizations. In a former life he was the CEO of Expedia, although he left the company before its partnership with TerraPass was established. Erik is excited about the new venture, explaining on a recent blog post,
“Back in Internet pre-history, at the dawn of online travel, nobody knew you could even check airline ticket prices online, much less book tickets. Now almost half of all travel is booked online. I think we’re at the beginning of another explosion in consumer awareness, this time in the voluntary carbon markets.”
I spoke with Erik by phone on May 25th.
Green Options: How do you respond to carbon offset skeptics? For example, the argument that offsets are just an easy way for people to pay off their pollution without much sacrifice.
Erik Blachford: I hear that argument a lot, but it’s not accurate as to what TerraPass does. People who buy carbon offsets aren’t just sitting back afterwards and thinking they’ve done their duty. These people are active in other ways, too: they’re very in tuned to the problem and the other solutions. Furthermore, carbon offsets are a voluntary enterprise; no one is forcing someone to buy carbon offsets.
However, there is also a lot of talk about common umbrella standards for carbon offsets, and I think TerraPass and our customers would be better served with them. Our industry needs consumer protection standards. Right now it’s unregulated, and the consumer has to be very cautious. Consumers are taking the initiative and doing the research on which carbon offset programs are legitimate, but they shouldn’t be expected to do all of the work.
GO: What makes TerraPass different from other carbon offset companies?
EB: Terra Pass focuses on helping the individual consumer reduce emissions, rather than only large corporations. We want to help individuals take action to reduce their carbon footprint. We’re also very accessible. The company has a blog where we can communicate with customers and get their feedback and ideas.
GO: You support a number of different renewable energy and efficiency projects. Why did TerraPass get involved in biomass? You don’t see that as a carbon offset very often.
EB: It’s great to be able to work with biomass providers. Energy from biomass is produced by capturing methane from sources like cow manure and burning it. We’ve set up contracts with them, buy credits and register them on the Chicago Climate Exchange (CCX). We are very careful to ensure that our carbon offsets are not counted twice.
GO: I don’t see tree planting – a very popular offset – as a TerraPass option. Why not?
EB: Trees plantings are popular offsets because they’re intuitively appealing. But the science doesn’t hold up enough for us to sell them. Some science is based on the average age of a tree being 80-100 years, but that’s just not always the case. And when the tree dies and rots, that carbon dioxide goes back into the atmosphere. There are some carbon offset programs that focus on the conservation of forests rather than tree planting, and that’s an interesting avenue that TerraPass may explore in the future.
GO: What percentage of carbon offset costs goes to the projects?
EB: We don’t break that out, because we don’t think offsets are commodity products, which is what that kind of breakout would imply. We are more focused on our pricing to consumers, which is competitive though not rock bottom, because it reflects the work we put into researching our projects thoroughly and sticking to principles like matched maturity of credits. We could probably sell offsets for a lower price if we we’re willing to sell credits from previous or future years, to buy blind on the CCX, or to buy forestry projects, but we have decided not to do any of those.
GO: How do you assure customers that their money is making a real difference?
EB: We make sure that the customer knows what we’re doing. We publish a verification report each year and we use three protocols to verify our credits: Green-e certifies our wind power projects, SES certifies our biomass, and First Environment certifies our landfill gas projects.
GO: What are some challenges and advantages of the U.S. carbon market?
EB: The U.S. didn’t sign onto the Kyoto Protocol, so one challenge is that the idea of carbon offsets is still fairly new here. There’s a general awareness of the issue, but carbon offsets still feel more exotic to people than they really are. It’s just a lack of awareness that we need to work on.
However, an advantage is that the American consumer is generally very open to new ideas and is very action-oriented. They want to take responsibility and do something, so the mindset of the consumer is right for a carbon offset market.
GO: TerraPass is well-known for its relationship with Expedia. How do you see that relationship evolving?
EB: We’ve got a great relationship with Expedia. It gets our brand out there and we look forward to continuing our relationship.
GO: I’ve got to say, it’s difficult to find the TerraPass option on Expedia’s site. It kind of gets lost in the shuffle of offers for car rentals and zoo passes.
EB: Expedia has many different lists of add-ons for their trips, so TerraPass is lumped with many other options. But we’re really happy to have the brand out there.
GO: If you could partner with any other company or entity, who would it be?
EB: That’s a really good question, but my answer is going to sound really funny. I really want to partner with the federal government. Global warming and emission reductions are a national problem. We need federal action and federal standards to solve it.
Image source: Zimbio