An Alternative to Green Tags -- Sterling Planet's "White Tags"
by Collin Dunn, Corvallis, OR, USA on 05.11.06
TreeHugger has mentioned numerous forms of green tags (renewable energy credits -- companies like NativeEnergy and TerraPass are using them to offset carbon emissions from everything from movie productions to football games) before, and we think they're pretty cool. Still, opponents of the programs have noted that they may simply enable consumers and companies alike to continue to do non-TreeHugger things (like burn excessive amounts of fossil fuels) and just write them off as "It's okay, it supports renewable energy" without changing any of their behaviors. A company called Sterling Planet thinks they have the answer. In addition to green tags, they have a new program called "White Tags," which are credits earned for saving energy. Unlike green tags, which are tied to creating and delivering renewable power and are measured by meter readings, White Tags are determined through precise calculations of energy savings derived from conservation measures.
Sterling Planet has developed state-of-the–art technology with advanced mathematical techniques and neural network algorithms to establish accurate (greater than 99.9%), scalable and cost-effective processes for the measurement, verification and certification of White Tags. Three states -- Connecticut, Nevada, and Pennsylvania -- will soon require energy efficiency credits as a way to decrease electricity demand. Sterling said next year, Connecticut will be the first state to implement such a program.
Until then, Sterling has a "nationwide plan" that allows consumers in any state to invest in energy efficiency, and Sterling is also targeting businesses and organizations, with trading and banking going both ways. They hope to bring together White Tag buyers and sellers; buyers will include electric utilities in mandated markets with portfolio standards and corporations or institutions in voluntary markets that are looking to meet greenhouse gas emission goals. Sellers will include those who have taken concrete, effective measures to reduce their energy use and have contracted with Sterling Planet to measure, monetize and certify the White Tags that result.
Pretty cool, these White Tags. It's good to see a company aiming to reward conservation, rather than consumption. A caveat of the White Tag model might be that it will differ from state to state, which quickly gets confusing and might serve to be as confusing as it is beneficial. The good news is that, as consumers, we aren't tied to any state model and can support the White Tag program from anywhere in the country, or the world, for that matter. We sure hope it gains a foothold and will work with businesses and consumers alike to foster more energy-efficient practices. ::Sterling Planet via ::Gristmill
Great overview of an important new instrument, but I'd point out a few notes of clarification.
These "white tags" would be used to offset other CO2 producing activities, so really will likely receive the same criticism from the indulgence folks. This is the same issue that was brought against recycling programs and really a minor point when you consider how far we have to go to acheive zero carbon output in our lives.
Secondly, 33% of TerraPass portfolio is generated through allowances on the CCX, so efficiency programs are already something our members support.
Indeed - anything is better than nothing when it comes to offsets or incentives to reduce/replace/offset energy usage and pollution creation. Yes, we should conserve - but to minimize our impact, programs like White Tags are a welcome addition to the mix of options.
Except, of course, the buzzword compliant usage of "neural networks" to make the process sound more meaningful than it probably is - arrrrg - just a personal quirk on my part.
The company claims the white tags will be "measured, verified, and certified." Unless measurement, verification, and certification is conducted by an independent third party then this amounts to a 1st party claim of "self-certification" which offers no assurance or protection to the customer. Would you trust such a product? The self-certified white tag has a long way to go before it achieves the crediblity and consumer trust that is demanded in the offset market. In contrast, Green-e certified renewable energy certificates (RECs) are indpendently certified and verfied by the non-profit Center for Resource Solutions and the results of the annual audits of the companies offering this typ of product are published on the Green-e website (www.green-e.org). Green-e has been offering this independent certification since 1997.
Indulgence? Not really.
Terrapass and CarbonFund et al, are just like paying the garbageppersons to take your trash away; or paying for sewage removal and treatment. Its a freemarket utility whom I pay to do something I value, not an escape from damnation.
One potentially problematic considerations: existing state EE programs are well-entrenched and won't be compatible with the white tag model as Sterling has outlined it. The nuance of the problem is varied and detailed, but suffice it to say that a nation-wide white-tag market that has as many as 50 (though probably far fewer, given the dearth of in-market EE programs) sub-markets is not as easily dismissed as this article suggests. Any system that Sterling develops should be especially accomodating to the idiosynchratic California market, that has a huge population and a 30-year state-mandated EE program.