The Dutch are known to be earthy and sensible people, and thanks to the little boy who stuck his finger in the dyke, resourceful too. All these elements combined may be why the tiny country is, according to today’s featured guest the Climate Neutral Group, ranking second in Europe after the UK, in carbon offsetting.
In fact the word ´klimaatneutraal´ (climate neutral in English) was chosen as a top 3 Dutch word for 2007, reports the Climate Neutral Group, the for-profit provider which likely played a major role in exposing the importance of carbon offsetting in Holland.
After touring around the world talking to non-profit providers (see the round-up story here), Carbon Catalog for the last month or so has been interviewing carbon offset providers in the for-profit sector.
See:
Will for-profits be more effective and competitive in the long term? Will there be consolidation as the market expands? How do companies feel about stringent cap-and-trade regulations, or a carbon tax? What are their favorite environmental heroes?
These are some of the questions we’ve been asking in our series. Today we speak with Mr. Niels Korthals Altes, the Business Development Director from the Climate Neutral Group. (A round of applause please.)
What is your company’s favorite offset project and why?
The composting project in Egypt because of all the benefits it brings to local communities and the ambitious partner (Sekem) that we work with. (For the complete list of Climate Group projects click here)
Tell us about environmental heroes your staff admire.
Eckart Wintzen. He passed away suddenly a few weeks ago but was the Dutch ´father´ of sustainable business. For over two decades he has been investing in green ventures and kept challenging traditional business to change their ways. Right from the start in 2002 he was one of the ambassadors of GreenSeat.
How much did your company offset last year?
Around 210, 000 tons of CO2
Based in the Netherlands that puts you in a good strategic location to work with the whole of Europe. Are you selling to Europeans or to people from the UK? Do you plan to extend to other countries?
Via the websites we sell to people all over the world. However, our partnerships and corporate customers are limited to the Netherlands, Belgium, Scandinavia, Switzerland and France.
How do the Dutch compare to other Europeans? Is carbon offsetting important to them? Is this something they talk about in the news?
In terms of importance I think we rate second after the UK. It has been in the news extensively since the end of 2006. The word ´klimaatneutraal´ (climate neutral) came in third in the word of the year 2007 contest.
What resources are your company using to learn more about offsets?
All sorts of sources. Ranging from UNEP [United Nations Environment Programme], IPCC [Intergovernmental Panel on Climate Change] and WRI [World Resource Institute] to local organisations such as CE [Centre for Energy Conservation and Environmental Technology] and ECN [Energy Research Center of the Netherlands].
What motivated your company’s founders? Profit or the environment? What is their background?
The founders of the company are mostly foundations (Face, DOEN’ and social business enterprises (Triodos, Kegado)). The primary motivation and mission of the company is to combat climate change. No profit has ever been turned out to shareholders.
In running your business, how do you strike a balance between achieving environmental goals, and making a profit for your shareholders?
After many years of losses, 2007 is the first year in which a small profit was made. As a result, the company is now financially sustainable. Given the motivation of the founders the balance is not difficult to make.
Considering the additional tax advantages that non-profit providers can give their customers, do you believe you can compete in the long term?
In the Netherlands it isn´t the legal structure that determines tax advantages but what the organisation does. Foundations and companies selling CO2 credits are taxed the same. Only if a donation is made to a foundation and no service is delivered (i.e. no carbon credits sold/delivered) is there a tax advantage.
How do you feel about possible stringent cap-and-trade regulations, or a carbon tax? Do you think this would affect your business?
Depends on the implementation. Since this would be a big step towards putting a price on carbon emissions we will always support such an initiative.
The voluntary carbon market is experiencing a lot of growth, but there is also an increasing amount of competition. From your sense of the marketplace, do you think there is room for more players, or do you expect consolidation?
I expect both. Consolidation makes sense and will happen. On the other hand, new organisations will pop up. Competition is good for the market, especially if the quality (certification) is guaranteed through industry initiatives.
One of the oft-cited reasons for being a company is the ability to raise money from investors. Has your company raised any funds, and if so, can you give some indication of how much, and from which sources?
In the initial stages the company has raised funds. Growth is now financed from cash flow.
What do you think motivates your corporate customers to voluntarily buy carbon offsets? Are their customers demanding it?
As we become more and more aware of the problem, people and organisations are beginning to feel a moral obligation to do something about it. We´ve come to see that CO2 is [a type of] garbage that we have to treat as such by reducing the amount produced and taking care of the rest.
Most indicators suggest we’re at the start of a recession, or at the very least a slowdown in growth. How do you think this will affect the carbon business? Are you seeing any changes already?
It shouldn´t but in the end it may. However, if we recognise the severity of the problem we will also recognise that we really have to act. Recession or not. If there is a recession I hope that the sense of urgency is such that taking care of CO2 emissions doesn´t slow down. On the contrary, the climate crisis provides big opportunities to create new businesses.
Some companies invest directly in carbon offset projects, without using the services of a provider such as yourselves. What value does your company provide, in its role as an intermediary?
Climate Neutral Group has developed from a provider of carbon credits to a carbon footprint management firm. First, we do CO2 footprint analysis, second we advise on reductions, third we compensate remaining emissions and fourth we help creating a culture of sustainability in the organisation.
The For-Profit Series
If you liked this interview, others in this series include:
Australia’s Climate Friendly
Canada’s ZeroGHG
America’s Terrapass
Belgium’s Climact