Frequently Asked Questions
How Does Evolution Sage Guarantee Offset Quality?
Each year, we contract with an independent certified public accountant to audit all Evolution Sage financial transactions. The first annual audit will be performed in January, 2009 and be posted on our website for download for merchants and customers to review. In addition, Evolution Sage is engaged with the Center for Resource Solutions and their respected Green-e certification program to provide independent, third-party verification for all carbon credits generated from Evolution Sage projects in Hawai'i.
Is Evolution Sage a 501(c)3 organization?
No. Evolution Sage is an ecology-based business model, not a charitable organization. We believe strongly in the need to pioneer partnerships that integrate the business community with sustainable practices in Hawai'i, and seek to bridge this divide. While it was tempting to form as a 501(c)3, we realized that Hawai'i already has an incredible amount of charitable organizations supported by our philanthropic community--and decided instead to try to harness the power of the market for the good of our environment. Our model allows us to be flexible and efficient, and take risks that not-for-profit organizations can't for the good of Hawai'i. We are, however, transparent and committed to providing the highest-quality carbon offsets in the country. We invite you to compare us to other groups: our low overhead and renewable energy-based offsets compare favorably with all other offset providers available--whether non-profit or business-based. See below for more information.
Why do Evolution Sage Offsets Cost $18/ton?
Quality. You literally get what you pay for. Our prices are driven by the rates we pay for the carbon offsets here in Hawai'i, set by the projects themselves. Since we only sell carbon offsets generated by energy efficiency and renewable energy projects (no forestry projects), you may find that our costs are slightly higher than other US-based offset groups. (Our costs are much lower than European groups). Because of shipping and labor costs, the solar and other projects that we help build here in Hawai'i cost more. We believe the small difference in price is worth the guarantee that your efforts are making real impact on climate change and our island community. Making our islands sustainable and self-sufficient is part of our mission. If we don't do it, who will? Ultimately, our goal is to work at consistently lowering our prices as our volume of transactions increase to meet demand (without sacrificing the quality of the offsets).
Does My Offset Contribution Go Directly To Projects?
Yes. Evolution Sage is Hawaii's only carbon-offset provider and our mission calls for generating carbon offsets only from Hawai'i-based projects. Every dollar that comes in from carbon offset purchases is used to directly support greenhouse gas reduction activities by Evolution Sage, and at least 75% of every dollar goes directly to support actual project installation. Our overhead is extremely low in comparison to other groups, whether non-profit or business-based.
Why Did Sage Get Started?
We’re confident that there are many, many individuals and businesses that want their carbon offset dollars to stay here in Hawai‘i. In fact, that's the reason that we got together to start Evolution Sage in the first place—because of our frustration at not being able to offset in Hawai‘i. Sage has been modeled on two offset organizations that we have tremendous respect for: Climate Trust (Oregon-centric pseudo-governmental org) and Native Energy (Native American Reservation-centric for-profit) that both focus on building sustainable infrastructure in their own “backyards.” Few (if any) other offset groups do that—and we think it’s not coincidental that they are also the groups with the most integrity out there in terms of their product. That’s exactly what we want to do for Hawai‘i, while simultaneously creating a network of like-minded individuals and businesses in Hawai‘i that recognize and patronize each other to build economic strength by adhering to a triple-bottom-line and “spend local” philosophy.
Who Were The Very First Groups That Went Carbon-Neutral in Hawai'i?
The Kokua Foundation (Jack Johnson’s organization) has offset their 2006-2008 Kokua music festivals with Sage. Lani Hau Design (a family home construction company on O‘ahu), Natural Investing, and Blue Planet Foundation also offset their company footprints very early on.
What is the total size of your existing fund?
There is no standing “fund” per se. As carbon credits are purchased, those funds are immediately distributed to support the projects that Evolution Sage has agreed to take on and make happen. Our goal is to help subsidize and create as much energy efficiency/renewable energy infrastructure projects in Hawai‘i as possible as soon as possible to cut Hawai‘i’s carbon footprint. Building a “fund” would mean we’re sitting on assets rather than pushing carbon offset dollars out to project partners who can put solar panels on roofs, etc.
What percentage of our offset amount goes directly to projects?
Right now, 100% goes directly to projects. Evolution Sage has been started as a collaborative project we are all working pro-bono at the moment to launch it. We feel the most important thing we can do is build the model and educate people in the early stages about what carbon offsetting is, what it means to be carbon-neutral, and why it’s important to offset locally. We’re all from Hawai‘i and want this mission and entity to thrive—we think it’s important to send every dollar straight to projects first and foremost to prove the concept and build as much sustainable capacity as quickly as possible to show tangible results to people. Eventually, when we reach a point where we have enough projects completed and begin to sell a steady number of credits per month, we will start supporting administration with carbon credit dollars rather than our own personal funds and sweat equity. While no other group can compete with our current 100% number, other organizations are all over the map. Some non-profits claim that “90%” of funds are used for projects, but such “high” numbers really just mean they are defining their own staff time and outreach as “educational” and part of their mission and project of “spreading the climate word.” For-profit offset providers range from an abysmal 25% going to projects to 75% or so at the very best-run. (To be fair, admin is a huge cost because of the individual tracking of credits, auditing, and outreach efforts—esp in an area like Hawai‘i where the concept is poorly understood). We aim to eventually settle in that top tier of 75% or more of each dollar going directly to project infrastructure.
Why Isn't Sage a Non-Profit If Your Mission Helps the Environment?
We call ourselves a “theoretical for-profit” that operates with the shrewdness, flexibility and creativity of a for-profit in service of the values and mission of a non-profit. Although most of us have a non-profit background (Trust for Public Land, Sustain Hawai‘i, Hawai‘i Nature Center), we specifically decided to set up Evolution Sage as a business entity for several reasons. The first was that Hawai‘i has more non-profits per capita than almost all other states, and having worked in the non-profit arena for many years we agreed that turning the business community on to green practices should be a mission that supports itself without philanthropic dollars that are badly needed elsewhere. We specifically wanted to promote the idea of a green, triple-bottom line business working with other businesses to help solve global warming and make green business the standard (by example) rather than the exception. The second major reason is flexibility. Evolution Sage not only does offsets, but we are gearing up to do fee-for-service carbon emission inventories for businesses in Hawai‘i and provide consulting services related to compliance with the recently passed Act 234 Greenhouse Gas Reduction law. Forming as a non-profit under the IRS with a set-in-stone mission and rules relating to non-related income would have potentially doused this whole innovative/entrepreneurial side of our org. In addition, carbon offsetting and finance itself is a rapidly-shifting market that changes almost daily depending on policies adopted by governments, verification standards agreed upon in Europe, and consensus on best practices and project type. While our mission is clearly a “charitable” one, we can get it done with much more speed and efficiency without the formal mission definitions and limitations that are necessary under an IRS description. Any “profits” that do materialize (likely many years away—from the inventory/consulting side) will be plowed into projects or capacity to do more global warming-related education and advice to Hawai‘i businesses. As a triple bottom line business, we’ve adopted capped, needs-based salaries into our operating agreement along with several philosophical decisions based on social justice (location and type of projects).
Glossary of Terms
A/R
Afforestation and reforestation. Term given to the class of projects devoted to the planting of trees on unforested land for carbon emissions reduction and other environmental benefits.
Asia-Pacific Partnership on Clean Development and Climate (APP, AP6)
The Asia-Pacific climate pact is a rival international climate change agreement to the Kyoto Protocol. Its initiators in 2005 were the United States and Australia, the only two industrialised nations not to have ratified the Kyoto treaty at that time (Australia since has ratified in 2007). The group also includes China, India, Japan, South Korea and now Canada. APP rejects Kyoto-style emission reduction targets in favour of encouraging business to invest in clean fossil-fuel technology and renewable energy.
Banking and borrowing
The ability under an emissions trading scheme to save emission permits issued in one for use in later years (banking), or bring forward some of a future year's permit allocation for use in the current year (borrowing).
Baseline and credit
A type of emissions trading scheme where firms are encouraged to reduce their greenhouse gas emissions below a projected “business as usual” path of increasing emissions. Any reductions below that future path earns credits for the difference which can be sold to other emitters struggling to contain increases to baseline levels. See also cap and trade.
Biofuels
Biofuels are renewable fuels made from plants that can be used to supplement or replace the fossil fuels petroleum and diesel used for transport. The two main biofuels are ethanol and biodiesel. Ethanol is produced from the fermentation of sugar or starch in crops such as corn and sugar cane. Biodiesel is made from vegetable oils in crops such as soybean, or from animal fats. Depending on the processes used to make biofuels, greenhouse emissions from cars and fuel-powered machinery can be substantially reduced by their use.
Cap and trade
The most popular type of emissions trading scheme where emissions are subject to a cap, permits are issued up to that cap, and a market allows those emitting less than their quota of the cap to sell their excess permits to emitters needing to buy extra to meet their quota. See also baseline and credit.
Carbon dioxide equivalent, CO2e
See MtCO2e
Carbon capture and storage
See CCS
Carbon footprint
The global warming impact of human activities in terms of the amount of greenhouse gases they produce. The emissions associated with the use of power, transport, food and other consumption for an individual, family or organisation are added up to give one comparable measure in units of carbon dioxide equivalent.
Carbon neutral
An individual, family or organisation that is responsible for no net emissions of greenhouse gases from all its activities is considered "carbon neutral". Emissions must be cut to a minimum and any necessary emissions then offset by emission reducing activities elsewhere. Buying accredited clean electricity helps cut household or office greenhouse emissions, while investing in sustainable energy projects or afforestation schemes are examples of offsets.
Carbon positive
An individual, family or organisation that is responsible for taking more greenhouse gases out of the atmosphere than it emits is said to be "carbon positive". This requires minimising one's own emissions and more than offsetting remaining emissions by paying for activities such as forest planting or investing in renewable energy.
Carbon price
An economic value placed on the emission of greenhouse gases into the atmosphere from human activity. This price is designed to create a disincentive for emissions and incentive to avoid them. A carbon price takes the form of either a carbon tax or an emissions trading scheme.
Carbon sink
Natural and potentially man-made features on the Earth's surface where carbon dioxide is removed from the atmosphere. The major natural sinks are forests and oceans which have processes that absorb CO2. Carbon sinks are vital to fighting global warming because they counteract sources of carbon emissions, such as industry and transport.
Carbon tariff
Import duty levied by countries with greenhouse gas emission caps in place on carbon-intensive goods from countries without such controls in place. The intention is to protect the competiveness of local industries whose goods have higher prices than their imported rivals because they reflect the cost of carbon. More
Carbon tax
One form of carbon price on greenhouse gas emissions. Set by governments, a price on emissions is fixed and emitters are allowed to emit whatever they want at that price. Emissions trading prices carbon in the reverse approach; fixing emissions, with price varying.
CCS
Carbon capture and storage. A two-step measure to prevent carbon dioxide being emitted to the atmosphere, particularly from power generation and industrial processes. Instead of venting CO2, it is contained and pumped underground under pressure and sealed off, where it cannot contribute to global warming. This technology is still in its infancy with results largely unproven. Also known as carbon sequestration.
CDM
Clean Development Mechanism. A Kyoto Protocol initiative under which projects set up in developing countries to reduce greenhouse gas emissions generate tradable credits called CERs, the first step towards a global carbon market. These credits can be used by industrialised nations to offset carbon emissions at home and meet their Kyoto reduction targets. The projects include renewable energy generation, reforestation and clean fuels switching.
CER
Certified Emission Reduction. A credit generated under Kyoto’s Clean Development Mechanism (CDM) for the reduction of emissions of greenhouse gases equal to one tonne of CO2-equivalent. They are designed to be used by industrialised countries to count toward their Kyoto targets but can also be used by EU companies and governments as offsets against their emissions under the EU Emissions Trading Scheme. See also Offsets.
CFI
Carbon Financial Instrument. The name of the futures contract through which parcels of emission permits are traded on the European Climate Exchange and the Chicago Climate Exchange. Each CFI consists of 100 permits (mandatory EUAs in Europe and voluntary allowances and offsets on the <st1:place w:st="on"><st1:city w:st="on">Chicago</st1:city></st1:place> market) covering the emission of 100 tonnes of CO2.
CO2e
Carbon dioxide equivalent. See MtCO2e
EITs
Economies In Transition. Those nations in Annex I of the Kyoto Protocol considered developed but currently in transition to a market economy. Generally the nations and former republics of the old Soviet bloc.
Emissions trading
One form of carbon price creating a market-based system for regulating the emission of greenhouse gases. The quantity of emissions is controlled and the price allowed to vary by the issuing of tradable emission permits. These rights to emit can be traded in a commercial market under an emissions trading scheme. More in FAQs
ERU
Emission Reduction Unit. Tradable credits generated from activities to reduce greenhouse emissions in in industrialised countries, particularly those of the former Soviet-bloc, under the Kyoto Protocol’s Joint Implementation (JI) mechanism.
ETS
Emissions Trading Scheme. See FAQs
EU ETS
European Union Emissions Trading Scheme. See FAQs
EUA
European Union Allowances. Tradable emission credits from the EU Emissions Trading Scheme. Each allowance carries the right to emit one tonne of carbon dioxide.
Food miles
Refers to the distance foodstuffs travel through their various stages of production and processing to the point at which they reach the consumer. A measure of both distance traveled and mode of transportation allows comparisons of the energy use and the contribution to greenhouse emissions associated with various food types and sources.
GHG
Greenhouse gas. See FAQs
Greenhouse intensity
Refers to the ratio of a nation’s greenhouse gas emissions to its GDP, or the volume of emissions per unit of economic output. A country’s greenhouse intensity may often be falling yet overall emissions are rising due to an expanding economy. Greenhouse intensity measures are also used at a company, plant or industry sector level.
GIS
Green investment scheme. An arrangement whereby Western industrialised countries buy the surplus Kyoto carbon emissions credits, AAUs, of eastern European countries on the condition they invest the proceeds in low-emissions technology. GISs came about due to pressure on former Soviet bloc countries to use these surpluses, known as "hot air", responsibly, ie. to build environmentally-sustainable industry.
GWP
Global warming potential. This refers to the potency of greenhouse gases, that is, their ability to trap heat in the atmosphere. The GWP is a numerical measure relative to carbon dioxide, the most abundant greenhouse gas. So carbon dioxide itself has a GWP of 1. For the GWPs of all greenhouse gases, see FAQs.
Hot air
Also called paper credits, the term refers to carbon credits for emission reductions that occurred without any deliberate action. The prime example being the carbon credits arising under Kyoto in Russia and the Ukraine where the collapse of Soviet-era industry in the 1990s has seen emissions fall well below 1990 levels, the base year for reduction calculations, without the implementation of any climate-related measures.
IPCC
Intergovernmental Panel on Climate Change. An international scientific panel charged with informing the UNFCCC with the latest scientific evidence on climate change. With representatives from 130 nations it is the world's pre-eminent scientific advisory body on global warming.
ITL
International Transaction Log. The means by which carbon allowances and credits generated under the mechanisms of the Kyoto Protocol - AAUs, CERs and ERUs - are traded between countries. An online IT platform that connects UN and national greenhouse emissions registries, facilitating the emerging global carbon market.
JI
Joint Implementation. A Kyoto Protocol mechanism which allows developed countries, particularly those in transition to a market economy, to host carbon-reducing projects funded by another developed country. The arrangement sees the credits generated, called ERUs, go to the investor country while the emission allowances (AAUs) of the host country are reduced by the same anount.
Kyoto Protocol
See FAQs
Leakage, carbon leakage
Occurs when laws or activities designed to cut greenhouse gas emissions implemented in one jurisdiction or project area lead to the shifting of the targeted emitting activities elsewhere, thus undermining the attempt to reduce emissions.
LULUCF
Land use, land use change and forestry. The term given to the sector covering reforestation & afforestation, land clearing and agriculture. Each of these activities can make significant contributions to atmospheric carbon emissions and/or removals.
NAPs
National Allocation Plans. These set out the overall emissions cap for countries in phases I and II of the EU Emissions Trading Scheme up to 2012, and the emissions allowances that each sector and individual installation within each country receives.
Offsets
Carbon offsets, offset credits. Credits issued in return for a reduction of atmospheric carbon emissions through projects such as the provision renewable energy to replace fossil fuel energy, or reforesting cleared land to create a carbon sink. By paying for such emission reducing activities, individuals and organisations can use the resulting credits to offset their own emissions, either voluntarily or under the rules of most emissions trading schemes. One offset credit equates to an
emission reduction of one tonne of CO2. See also CER.
PDD
Project Design Document. The official application drawn up by an entity applying for project approval under the Clean Development Mechanism (CDM). PDDs must be validated by an independent third party, then approved and registered by the CDM Executive Board before a project qualifies as a CER carbon credit earner.
REDD
Reduced Emissions from Deforestation and Degradation. An initiative to cut greenhouse gas emissions associated with forest clearing by the inclusion of “avoided deforestation” in carbon market mechanisms. More simply, payment in return for the active preservation of existing forests.
RMUs
Removal Units. Credits earned from land use, land-use change and forestry projects (LULUCF) in industrialised countries, including such projects under the Kyoto Protocol’s JI mechanism.
tCO2e, MtCO2e
Tonnes of carbon dioxide equivalent, and millions of tonnes of carbon dioxide equivalent. This is the metric measurement unit for greenhouse emissions. The global warming impact of all greenhouse gases is measured in terms of equivalency to the impact of carbon dioxide (CO2). For example, one million tonnes of emitted methane, a far more potent greenhouse gas than carbon dioxide, is measured as 23 million tonnes of CO2-equivalent, or 23 MtCO2e.
UNFCCC
United Nations Framework Convention on Climate Change. Also referred to informally as the UN climate change convention. It is the international agreement for action on climate change and was drawn up in 1992. A framework was agreed for action aimed at stabilising atmospheric concentrations of greenhouse gases. The UNFCCC entered into force on March 1994 and currently has 189 signatory parties. The UNFCCC in turn agreed the Kyoto Protocol in 1997 to implement emission reductions in industrialised countries.
VERs
Verified Emission Reductions. Tradable credits for greenhouse emission reduction activities generated to meet voluntary demand for carbon credits by organisations and individuals wanting to offset their own emissions.