Background

Climate Neutral Network Aims to Fuel Market Demand for Solutions to Global Warming

Incorporated in 1999, the Climate Neutral Network (CNN), a small nonprofit organization based in Portland, Oregon, has built an impressive coalition of companies, nonprofit organizations, government agencies and academics committed to bringing climate neutral products and services to market.

CNN defines Climate Cool™ products and services as those "determined to have little or no effect on the Earth's climate." This is achieved by reducing and offsetting the greenhouse gases associated with a product, service, or event. One way to do this is to significantly reduce energy use and emissions of global warming gases within the companies' own facilities. After making these internal reductions, Climate Cool™ companies invest in energy reductions to offset their remaining greenhouse gas emissions and achieve a net zero impact on the Earth's climate. There are a tremendous variety of offset options to reduce CO2 emissions; for example, installing solar panels that convert sunlight into electricity, which reduces the need to burn fossil fuels; or planting trees, which absorb global warming gases. Products or companies that eliminate all of their emissions may be considered "climate neutral" and are eligible to apply for a Climate Cool™ certification and use of the Climate Cool trademark.

The idea for the Climate Neutral Network emerged from an inquiry by a small group of colleagues about how much it would cost to offset the emissions created by a typical automobile burning one gallon of gas.

Surprised to learn that the cost might be as little as a few cents, one member of the group, Sue Hall, began engaging a wide spectrum of companies, nonprofits, government officials and others to consider the following: could a major gas company that opted to allow consumers to voluntarily pay a few cents more per gallon for fuel sold as "climate neutral" - with the extra funds invested in independently monitored and verified offsets - gain a competitive advantage in the marketplace? A creative dialogue ensued with leaders spanning the Rocky Mountain Institute, Interface, Inc., the Office of Policy, EPA, Trexler & Associates, Business for Social Responsibility, and beyond, which began to seriously examine the potential that a "climate neutral" marketplace could offer.

Understanding that company claims of being "climate neutral" would not hold up under scrutiny without the involvement of other stakeholders, Hall then engaged some of the leading environmental organizations, including the Center for Neighborhood Technologies, Conservation International, the Natural Resources Defense Council, The Nature Conservancy, and the World Resources Institute. These and other groups helped the Network develop "Design Principles" for climate neutral projects, based on current science and technology. The aim of the Design Principles is to give companies engaging in climate neutral initiatives reasonable assurance that their efforts will have the buy-in of the mainstream environmental activist community.

"The Design Principles have proven to be an extremely valuable guide in developing creative and highly credible business opportunities," says Daniel Lashof, Senior Scientist at the Natural Resources Defense Council, widely considered to be a leading environmental movement expert on global warming issues. "They have evolved as the result of feedback and productive critiques from a broad range of colleagues."

CNN is a collaborative, creative network, organized to encourage creativity and partnerships among the various participants.

CNN stakeholder companies seek to gain competitive advantage through market differentiation, increased market share or being identified as preferred suppliers. These types of initiatives reduce costs, increase employee or customer loyalty, and demonstrate business leadership to government regulators, politicians, the media and other stakeholders.

Skeptics might wonder whether offering Climate Cool™ products and services could unwittingly entice consumers to consume with abandon, believing that any wastefulness would be mitigated through Climate Cool™ purchases. For example, some consumers might consider their purchases of Climate Cool™ gas to be a license to drive more miles than ever.

CNN believes this won't be the case, as its Design Principles emphasize that companies must achieve "outstanding performance" in reducing their own global-warming emissions on-site before investing in offsets. The principles also explicitly encourage a portion of companies' offset portfolios be invested in emerging technologies that could dramatically reduce energy use and global warming emissions. CNN is committed to working with companies and organizations that address the consumption problem — by promoting use of hybrid vehicles, for example, but not a Climate Cool™ sport utility vehicle.

Also of concern to consumers and the public is that companies won't follow through on their commitments to make Climate Cool™ investments. Again, CNN partners aren't concerned. Companies that seek to employ the Network's certification process - allowing them to use the Climate Cool trademark attesting to their certified status - are required to submit climate neutral management plans that include commitments to long-term monitoring and verification of their Climate Cool™ investments.

All told, it's been an ambitious agenda, but the effort seems to be paying off. Over the years, CNN has launched a series of projects involving several high-profile companies that have shown the potential of the Climate Cool™ concept.

   © 2008