Who Cares about Carbon Offsets?

Apparently, a lot of companies.

According to a recent article in the New York Times, individuals and corporations have spent over $54 million dollars last year on carbon offsets, which are credits towards tree planting, wind farm projects, solar plants, and other eco projects. This figure is likely to double next year, with the rising awareness and popularity of the "green" cause. Major corporations like GE, Bank of America, VW, and Dell offer offsets with the purchase of their products.

With the growing popularity, skeptics are beginning to ask questions. Who are these little known carbon offset companies? Is the money going to good use? Is this really offsetting carbon in the atmosphere? How is that measured? The FTC, which regulates advertising claims, recently began hearings on the "green markets", including offsets.

Companies like Terrapass.com and Carbonfund.org have been the benefactors of this new trend. You can visit their websites yourself and make your own determination. But one corporate sponsor takes it a step further. Gaiam Living, the eco retailer's management insists on visiting the actual site before donating a percentage of their profits. They want to see first hand how their dollars are put to work, and that it's completely legitimate.

Not a bad idea.

Unless you have the time and money to actually visit these companies, you might try other options. Plant your own trees instead. Invest your money directly into a green mutual fund or solar company's stock. Trade in your SUV for a hybrid model or Prius. Or simply sell your house and live in a turkey coop with no electric or running water like Burt's Bee's multi-millionaire co-founder, Burt. Uh, maybe not.