If you are representing a business, or just want to buy carbon offsets to lighten your personal carbon load, no doubt you’ve been confused as to where you put your money. Prices for offsets can vary wildly from $10 to $25 per ton of carbon dioxide emissions, and its equivalent (not all greenhouse gases are created equal).

The services you will find online are either under a non-profit organization (an NGO) status, while others have been set up to make money as for-profit carbon offset providers.

But project providers, whether for profit or not for profit, are middlemen. Operating as brokers, they buy carbon offset credits in bulk from carbon offset projects in India, Africa, America or the source where the credits are being generated (and carbon emissions reduced) and sell them to you. Sometimes you get tax credits, good PR for your business, a certificate you can hang on the wall, or maybe just the personal satisfaction that you are saving the planet.

But before you press the pay button on the checkout cart, there are ethical, financial and environmental questions you should be asking yourself:

• Is it okay that companies generate a profit from global warming?

• Non-profit organizations are more transparent, and open their books for the public to see, but will they be competitive in the long-term?

• What advantages are there, for you as an individual or you as a business, to offset with a for-profit or NGO entity?

After several months of scouring the Internet and making our selection, Carbon Catalog has interviewed offset providers from around the world. Half are doing it to make money, as companies, and the other half are offsetting as NGOs. Ten offset providers later, and we are a little closer to understanding the offset purchasing value for consumers. We’ve asked a series of questions to help you make more informed carbon offset buying decisions.

Here’s who we interviewed (click on their name to read the entire interview). While below we offer a recap on trends and observations.

For Profit Providers
Climate Neutral Group (Netherlands)
Climate Friendly (Australia)
ZeroGHG (Canada)
TerraPass (United States)
CLIMACT (Belgium)

Not For Profit (NGOs
Goodplanet (France)
PURE (United Kingdom)
Offsetters (Canada)
CarbonFund (United States)
MyClimate (Switzerland)

Who offset the most carbon last year?
From those who chose to answer the question, the biggest offsetter of CO2e was the not-for profit CarbonFund at 800,000 metric tons.

What was your motivation for the non-profit or for-profit designation?
Our for-profits interviewed all declared concerns for the environment as their main motivation. The founders of ZeroGHG in Canada recognized they also had a special role as carbon management consultants for their clients.

Our NGOs also cited concern for the environment as their rationale, but added a bit more: Offsetters in Canada said they formed as an NGO to give more confidence to buyers in an unregulated market; PURE in the UK chose to go the NGO route to help facilitate smaller carbon credit transactions.

What does future competition look like? Will there be a consolidation of carbon offset providers? Our for-profit providers respond:

• Companies will find their niche

• Consolidation will happen

• Growth and competition is a good thing

• Consumers will have more choice

• Consolidation will provide better services for offsetters

Who’s buying and why?
It’s mainly companies buying from for-profit providers, but individuals are buying too. People are buying out of moral obligation, after doing risk analysis in their company, to increase public image and also out of general concern.

Both companies and individuals are buying from NGOs. Some companies are showing a preference to offset with NGOs for moral reasons. Tax benefits are another reason.

What are the added benefits today from offsetting with an NGO versus a for-profit entity?
For-profits believe they know how business works, and say that their clients who are businesses prefer working with them for that reason. They see their high-quality carbon offset consulting services as an important add-on, as well as providing accountability and market analysis as attractive components to their carbon offset business. For-profits say their ability to aggregate smaller carbon offset orders more efficiently, as well as an interest in screening out low quality carbon offsets, are all added benefits they can give the market.

Tax deductions for businesses and individuals seem to be the biggest reason why anyone should offset with NGOs. If you are purchasing offsets, it is recommended that you buy them from a provider in your country, and check tax laws to be certain. NGOs tend to be limited to smaller scale projects, but note that their “open books” transparency can give you more confidence that your money is going directly to projects.

Who will be more competitive in the long term?
Our for-profit providers believe they can more effectively cut carbon emissions in the long-term, and a couple believe that although it’s not the case now, in the future purchases bought from for-profit providers will be tax deductible. One provider, TerraPass, sees room for both kinds of offset providers in the future –– just like childcare and other services we enjoy today.

What did our NGOs say? One is adopting a for-profit business model component (Offsetters in Canada), because companies sometimes prefer working with companies, they say. Most of the NGOs we interviewed claimed that continued transparency, efficiency (lower overhead with more money going to projects) and tax deductibility will make them competitive in the long-term. Good Planet believes that offsetting should always be seen as a donation, not as a means for making money.

To get more details on the right offset for you and your business, visit our series of interviews below. Start with a company or NGO in your country or closest to you. Before buying — whether it’s for business or “pleasure” — check out Carbon Catalog’s rating system. According to our expert ratings system, the top countries to offset in (represented by the offset provider) is the United Kingdom, followed by Sweden, Netherlands, Germany and New Zealand. PURE, a non-profit and Tricorona Green, a for profit, earn the top spot (with same number of checks) while Climate Neutral Group stands in the second place; Atmosfair and Offset the Rest, in third.

Most importantly, once you’ve decided to offset don’t be afraid to ask questions. Legitimate companies and NGOs will not be afraid of your concerns.

::Climate Neutral Group (Netherlands)
::Climate Friendly (Australia)
::ZeroGHG (Canada)
::TerraPass (United States)
::CLIMACT (Belgium)
::GoodPlanet (France)
::MyClimate (Switzerland)
::PURE (United Kingdom)
::CarbonFund (United States)
::Offsetters (Canada)