How Terrapass works
Upon entering the Terrapass Web site, you type in the make, model, year and annual mileage of the car you drive and instantly find out your car's CO2 output. A 2008 Toyota Prius that drives 12,000 miles per year, for example, pumps 4,995 pounds of CO2 out its tailpipe, while a 2008 Hummer H3 adds 15,651 pounds for the same distance. To generate its numbers, Terrapass uses methods set up by the Kyoto Protocol, the 1999 international treaty that seeks, by 2012, to drop greenhouse gas emissions worldwide to 5 percent below their 1990 levels.
Next, you are offered the chance to buy a pass that will offset (counterbalance) the amount of CO2 your car generates, rendering your daily travels "carbon neutral." The cheapest pass, which covers the Prius, among others, is $29.75 per year, while the Hummer is among the most expensive, at $95.20 per year. For this amount, you get a swanky bumper sticker and decal to broadcast your choice to your fellow drivers, a weekly newsletter that gives you environmental tips and the knowledge that you have allowed Terrapass to offset your car's carbon footprint.
Even if you are renting a car, you can still do your part to offset its emissions. Terrapass is working with Enterprise, Alamo, and National to offer passes that cost about $1.25 per rental. According to the rental companies' joint Web site, Keys to Green, the cost is based on the average CO2 emissions generated by a rental car operating in their fleet.
Now I know what you're thinking. "So if I go buy a Terrapass, I can drive as much as I want and I'm not hurting the environment anymore?" Not exactly. Terrapass is not a license to pollute nor does it halt any of the emissions from leaving your tailpipe. Rather, it calculates the amount of CO2 your engine puts out and stops a similar amount of CO2 from entering the environment by subsidizing clean energy. Here's how it works.
Ever since Kyoto, voluntary carbon exchanges have been set up to buy and sell carbon credits between large companies and utilities. One credit is equivalent to the reduction of 1 metric ton of CO2 from the atmosphere. Terrapass uses the money you send them to buy carbon credits from wind farms and biomass generation facilities (which make electricity from cow manure). These earth-friendly companies use that money to subsidize their prices, allowing them to sell their electricity to municipalities more cheaply than conventional companies that burn carbon-rich petroleum and coal. They also use these funds to expand their operations, allowing them to generate even more carbon-free electricity, which helps lower overall costs as well. Finally, Terrapass will invest some of your money in carbon-reduction education and use it to help large corporations, some of the biggest CO2 offenders, lessen their CO2 output.
Bottom line, when you emit CO2 from your car's tailpipe, Terrapass will ensure that the same amount of CO2 that would normally be generated by traditional utility companies is prevented from entering the atmosphere in the first place. And since all of its offsets are third-party verified, you can rest assured that your money is actually doing something to help.