Frequently Asked Questions

Climate change refers to the variation in the Earth's global climate over time. Throughout history, the Earth's temperature has varied due to natural processes and events. More recently, increases in global temperature have been attributed to human activity and the dramatic increase of substances - known as greenhouse gases- in the atmosphere, causing the earth to retain more of the sun's energy. Because this activity has occurred during a very short period of time relative to the age of our planet, it is difficult to predict the effects of this warming. However, experts agree that the changes occurring are due to human activity, and will result in unpredictable and possibly devastating changes to natural ecosystems and human society.

The best way to address climate change is to take steps to directly reduce your carbon footprint, such as choosing cleaner, more efficient means of transportation; reducing your home energy use; and purchasing more environmentally friendly products and services. Once these actions have been taken, offsetting can help you to effectively neutralize remaining emissions by supporting projects that reduce emissions elsewhere.

Emissions offsets, or carbon offsets, usually quantified in metric tonnes (1000kg) of carbon dioxide equivalents (CO2e), can be used to counterbalance or 'offset' the impact of activities that generate greenhouse gases (GHGs). Emissions offsets are created by funding projects that either reduce the amount of greenhouse gases emitted elsewhere (such as energy efficiency, or renewable energy projects), or by those which effectively remove GHGs from the atmosphere, as in the case of some forestry projects. In conjunction with efforts to reduce emissions and increase efficiency, offsetting can be a useful and important part of individuals' and companies' efforts to reduce the global effects of emissions caused by their activities.

GHG emissions and offsets are typically quoted in terms of 'tonnes of CO2e'. CO2e stands for Carbon Dioxide equivalent, and is the standard measure of greenhouse gases emitted or offset, converted into an amount of Carbon Dioxide that would have an equivalent effect on the atmosphere (some gases have a more powerful greenhouse effect than others). Some examples of activities and their corresponding emissions in Tonnes of CO2e are:

• - Driving a small car for one year: 3.5 Tonnes CO2e
• - Driving a light truck for one year: 4.5 Tonnes CO2e
• - Average household energy use in a typical Canadian home for one year: 5.9 Tonnes CO2e
• - Heating a typical Canadian home for one year: 3.2 Tonnes CO2e

* source: the Pembina Institute, http://www.onelesstonne.ca/sourcescalcs.pdf

Each greenhouse gas (GHG) has a different effect on global warming; however, it is most convenient to refer to the combination of gases in terms of Carbon Dioxide Equivalence (CO2e). Each gas has a different global warming potential, or GWP score which determines its relative strength in producing global warming effects, with CO2 having a score of 1. The GWP for Methane, for example is 23, making it 23 times as potent as CO2. GWPs for other some other potent GHGs range from 296 for NO2 to as high as 22,200 for Sulfur Hexafluoride.

The threat of climate change is directly linked to the quantities of greenhouse gases (including CO2, methane, nitrous and sulphur oxides, CFCs, HFCs and PFCs) we emit into the atmosphere. It is important that individuals as well as companies and governments make efforts to reduce their emissions as much as possible. In addition to taking these actions, offsetting can provide a way to reduce total or aggregate emissions by supporting projects which reduce emissions beyond levels which would normally occur.

No. If the offsets that you purchase are of high quality then they have helped to generate real emissions reductions. In addition, when you voluntarily choose to offset your emissions, you send a powerful message stating that you acknowledge the impact of your activities. However, it is important to remember that emissions offsets should not be considered a substitute for actions that you can take to directly reduce your carbon footprint.

We all need to be a part of the fight against climate change, and every tonne of emissions reduced counts. While the voluntary offset market remains small compared to mandatory trading systems which rely on government legislation, they nevertheless can play an important role to supplement these markets and drive emissions reductions in areas currently not served by legislated markets. In 2006, voluntary markets transacted 23.7 million Tonnes of carbon dioxide equivalent (MtCO2e). The voluntary offset market is also growing rapidly - by over 200% between 2005 and 2006 so it is clear that voluntary actions can make a difference.

The Carbon Reduction Fund takes a portfolio-based approach to carbon offsets, supporting different types of projects in order to maximize the impact and reduce the risk from having only a single project source. All projects or programs must meet a number of quality criteria. Namely, emissions reductions must be real and measurable, additional to reductions that would have occurred anyway, and must be independently verified. For more information regarding the Carbon Reduction Fund's policies and procedures for projects, see our Policies and Governance section.

The Carbon Reduction Fund is very careful to only fund projects that are beyond "business-as-usual" practices and that depend on offset revenue to go forward. In the carbon industry, this concept is called additionality.

We strive to provide the best quality offsets available. The Carbon Reduction Fund invests in projects which use industry-leading quantification methodologies and third party verification. Put simply, the carbon reductions which are claimed must be measurable, and must make a real impact by being additional to any reductions that would normally occur. Finally, the methods used to record and account for these reductions must stand up to examination by an accredited outside organization. For more information regarding the Carbon Reduction Fund's policies and procedures for projects, see our Policies and Governance section.

Many types of activities can generate carbon offsets, however not all projects result in real, 'additional' reductions in greenhouse gases and may not take into consideration other potential environmental and social impacts. The Carbon Reduction Fund aims to supply offsets that meet the highest standards of additionality and permanence, and provide real, measurable reductions, with net positive environmental and social benefits.

Yes. All projects are verified by an independent third party in accordance with recognized standards such as the ISO14064 standards for greenhouse gas accounting.

All of the revenues from offset sales go towards financing the offset projects themselves, and the management and overhead costs associated with administering the Fund. The Carbon Reduction Fund strives to keep administrative costs low, and will publish and make available a public disclosure statement on an annual basis, starting in 2009.

Trees sequester carbon by absorbing carbon dioxide and emitting oxygen, converting the carbon to forest biomass. It is the Fund's position that tree planting alone is not the answer to climate change, but that afforestation projects can contribute to reducing emissions as part of an effective offset portfolio in combination with other activities such as renewable energy & fuel switching, and energy & fuel efficiency projects. Of all possible Land Use, Land Use Change and Forestry (LULUCF) project types, CRF will only consider afforestation projects for our portfolio, where non-forested land is reclaimed and reforested and only in cases where permanent conservation easements or similar provisions are in place.

Afforestation projects can also contribute to ensuring biodiversity and healthy ecosystems, and addresses the impacts of deforestation activities and forest fires, which currently account for 20% of global emissions. By ensuring that forests are sustainably-managed, their carbon absorbtion potential can be maximized and protected over an extended period of time.

Each time you fly, there is an impact on climate change because the fuel used by the aircraft results in the release of carbon dioxide and other greenhouse gases that are responsible for climate change.

Through a number of complex processes, jet fuel exhaust emissions at high altitudes are also believed to have additional negative climate impacts, such as cirrus cloud formation, as well as ozone formation, which make it even more important to address these emissions.

By changing the way we travel and live, or making better choices about the products we purchase and use, each of us has the ability to reduce the harmful emissions that we generate. It may not be possible for many of us to stop flying altogether, but by purchasing high quality offsets, you can ensure that you are mitigating the impact of your travel.

No. Other activities such as heating and cooling our homes, using fossil-fuel generated electricity, and driving cars are all major sources of emissions. Educating yourself on the impacts of these and other activities, and finding ways to reduce your emissions where possible, should be your first priority.

Aeroplan, Canada's premier loyalty marketing company, is the founding partner of the Carbon Reduction Fund. The Carbon Reduction Fund is a not-for-profit organization with a mandate to source and supply quality carbon offsets for business partners that share a dedication to reducing environmental impact, not only through offsetting, but through increasing efficiency and conservation within their own operations, as well as promoting consumer awareness on the impacts of greenhouse gas emissions.

Aeroplan is taking industry-leading action to address the serious risks posed by climate change. First, by taking concrete steps to reduce their own emissions from their operations and business travel. Secondly, by offering their members the opportunity to purchase emissions offsets through its partnership with the Carbon Reduction Fund. Aeroplan is also taking the extra step of matching members' offset purchases by providing 20% additional offset free of charge, allowing for an even greater impact in delivering real reductions in greenhouse gas emissions. Third, Aeroplan is offsetting 100% of its own business travel.

No. The Carbon Reduction Fund is a non-profit organization whose sole mandate is to seek out, develop and secure the highest quality emissions offsets possible in order to meet the needs of its partners. The majority of funds secured will be invested in the highest-quality offset projects with a reasonable amount going to support administration and management of the Fund.

Aeroplan's goal is to offer this program for the benefit of its members and the environment, and will not be generating any revenue from this project. Any funds over and above the cost of operating the program will be reinvested into environmental initiatives.

CO2 emissions for offset purchases are calculated on a per person basis. This is an estimate obtained by dividing the approximate total fuel used on a journey by the estimated number of passengers. We then multiply this number by a radiative forcing multiplier which takes into account the additional climate changing effects of jet emissions at high altitudes. At present, we use a factor of 2.7, which is recommended by the Intergovernmental Panel on Climate Change (IPCC). As the science regarding radiative forcing evolves, we may revise this factor.

Members will receive a thank-you email from Aeroplan confirming their purchase and Aeroplan's match of 20%.

Verified emissions reductions are purchased on behalf of Aeroplan through the Carbon Reduction Fund, which in turn invests in a range of high-quality offset projects. The number and type of projects will continually increase, but it is the intent of the Carbon Reduction Fund to have at least 75% of their offsets sourced from domestic projects and programs. While climate change is a global challenge, locating projects closer to home makes it easier to guarantee the quality of projects and to generate additional social and environmental benefits (creation of wildlife habitat, cleaner air and water) in our local communities. By locating projects domestically, we also hope to create additional awareness, education, and engagement on this important issue.

No. At present, Aeroplan Miles are pooled together to purchase verified emissions reductions from the Carbon Reduction Fund, which in turn invest in a portfolio of projects. A portfolio approach enables the Carbon Reduction Fund to contribute to high quality projects in a range of activity areas with unique environmental and social benefits, and minimizes the risk of only having one source of offsets.

Different providers of travel offsets use different methods to calculate emissions. The Carbon Reduction Fund believes that real reductions in GHGs are required to combat the potential threat of climate change and as such, we have chosen a conservative calculation method. In particular, we have chosen to account for the additional climate changing effects of high altitude emissions. To do this, our CO2 equivalent estimates are multiplied by a factor of 2.7, as recommended by the Intergovernmental Panel of Climate Change (IPCC). As the science regarding radiative forcing evolves, we may revise this factor.