Making our way around the globe, today we speak with Canada’s non-profit carbon offset provider Offsetters.

In previous weeks, we’ve met with Goodplanet/Action Carbone from France who does not see “the offsetting environment as a competition.”

There’s been the non-profit take of the Swiss-based myclimate. They believe climate protection should not be done to “increase your own wealth.”

“We want to make every effort to keep our eye on the ball – and that means fighting global warming,” says CarbonFund from the US.

And over in the UK, PURE rationalizes its non-profit status, “PURE originated because of a pent-up demand from individuals and companies that wanted to voluntarily buy/cancel small volumes of Kyoto quality CER credits for offsetting purposes…”

Based in Canada, today we chat with James Tansey, Co-founder and CEO of Offsetters. Taking another approach altogether, it seems that a hybrid business model is in Offsetter’s future.

Read on for the full interview.

Carbon Catalog: As a non-profit, what tax advantages can you bring to (a) individuals, and (b) businesses which purchase offsets through you?

James Tansey: Individuals and organisations can tax deduce the expense of purchasing offsets if they are business expenses. Offsetters is not a charity and we do not believe that offsets can have charitable status, since they provide a tangible service. We also think that it would be inappropriate for offsets to be charitable donations as they should be a normal business expense.

CC: Aside from the tax benefits, do you think a non-profit organization is a more appropriate structure for a carbon offset provider? If so, why?

JT: We have operated as a not for profit since we were formed and we find that the market is split in terms of their response to this. Businesses would prefer to deal with another business, while some purchasers, particularly in the not for profit sector, feel it should be a not for profit.

The limitations of a not for profit are significant. It is difficult to secure funds to invest in growth and it is very hard to invest strategically in longer term offset projects.

It is also more difficult to operate as a not for profit across jurisdictions Nonetheless, we envisage that we will continue to offer a not for profit service alongside a profit for good business model that will launch shortly.

CC: How would you respond to the criticism that only organizations which seek profit are likely to be run efficiently? Do you think you can compete with for profit providers over the long term?

JT: In Canadian law there is not a big difference operationally between a not for profit and a for profit. The big issue is whether you can accumulate equity over time and whether you pay corporate taxes on profits. This obviously provides some advantage to a not for profit in terms of the cost of the service.

The main advantage of a for profit is that it can leverage investment to create larger scale projects at lower cost, which reduces the cost to the consumer. Also, accountability to shareholders and owners is more direct in a for profit, which means that management will be more motivated to seek business.

CC: Who are your biggest offset buyers - individuals or companies? Can you disclose any names of people/organizations who offset with you?

JT: Our largest projects are with Harbour Air, Westjet, a large credit union that will go public shortly, Trek Travel, Absolute Travel.

CC: Do you have a favorite or most popular project? If so, please explain.

JT: We have a project that is in the final stages of verification that upgraded a gas furnace to a biomass furnace, reducing emissions very significantly (as much as 95%).

CC: Please describe your organization’s rationale for becoming a non-profit. Is it a matter of ethics?

JT: When we started there was not regulation of the offset market so we felt that our not for profit status would give consumers more confidence in our brand.

CC: How many tons of carbon did your org help offset in 2007?

JT: Around 11,000 tonnes

CC: Do you have buyers from other continents?

JT: We have occasional buyers from overseas, but most are in North America.

Thank you James.