This FAQ is designed to answer key questions about MIT's Air Travel Carbon Offset Pilot program mechanics, carbon offsets, and Climate Vault.
What is the Air Travel Carbon Offset Pilot?
The pilot program is a novel solution to provide the MIT community with a tool that allows MIT travelers to reduce the carbon footprint of their air travel, a significant source of greenhouse gas emissions. The pilot program provides an easy option for travelers to purchase high-quality, verified carbon credits to offset the climate impact of their air travel. MIT is contracting with the non-profit organization Climate Vault to provide carbon credits through an innovative approach to reduce emissions in the region. Travelers can purchase these carbon credits directly through MIT’s Buy-to-Pay platform at a flat rate of $50 for each domestic trip, $75 for each international trip, or the Flexible Option ($1 per unit).
Why does MIT need an Air Travel Carbon Offset program?
Aligned with MIT's Climate Action Plan and its pursuit of net-zero campus emissions, the Institute is dedicated to diminishing both direct campus emissions and the carbon footprint associated with the procurement of goods and services, including those linked to business-related air travel. Given the substantial contribution of air travel to carbon emissions, this initiative stands as a pivotal measure in the ongoing efforts to curtail MIT's environmental impact.
Who can participate in the Air Travel Carbon Offset program?
The initial pilot program is currently available for Institute-related air travel by faculty and staff in the MIT Sloan School of Management, School of Architecture and Planning, and the Kavli Institute for Astrophysics and Space Research. During the pilot phase, travelers at these schools and institutes can purchase carbon offsets directly through MIT’s Buy-to-Pay platform.
What types of funds can be used to purchase carbon credits through the Air Travel Carbon Offset pilot?
While anyone within the participating schools and institutes can participate and purchase carbon credits, travelers should use faculty discretionary accounts or general Institute funds for these purchases. Sponsored accounts cannot be used due to restrictions on how these funds can be spent.
Is participation in the Air Travel Carbon Offset pilot mandatory?
No, this is a voluntary initiative. However, we strongly encourage participation to help develop and demonstrate new solutions for climate action at MIT.
How does the pilot work?
Travelers can choose between fixed amounts of $50 for each domestic round trip and $75 for each international round trip or select the Flexible Option to purchase an amount of their choosing. These funds are then periodically pooled to efficiently purchase carbon credits through Climate Vault. All purchases are used to purchase high-quality carbon offsets.
How is the cost determined?
The fixed costs of $50 for domestic and $75 for international trips are based on an estimate of the social cost of carbon. The Flexible Option allows travelers to purchase any dollar amount based on their individual circumstances.
What are the payment options available?
Payment for carbon credits can be made directly through MIT’s Buy-to-Pay platform using a non-sponsored account, with a choice of three purchase options: $50 for domestic trips, $75 for international trips, or a Flexible Option of a customized amount to support different preferences and abilities to pay. Carbon credits cannot be purchased on an MIT Procurement Card or Travel Card, or on a personal credit card for reimbursement.
How do I purchase carbon credits?
Travelers from the areas in the pilot can visit MIT’s Buy-to-Pay (B2P) platform and click on the Climate Vault promo image (or search for the Climate Vault catalog). Purchase the carbon credits as you would any product or good through B2P.
How do I purchase credits for multiple trips?
You can purchase credits for multiple past trips by following the steps to purchase carbon credits through Buy-to-Pay. Simply adjust the quantity to the number of credits you want to purchase. Carbon credits are not refundable and should only be made after your trip is completed.
How are the collected funds used to purchase carbon credits?
The funds generated through traveler purchases are consolidated, and at regular intervals (such as monthly), the accumulated sum is remitted to Climate Vault. These funds are then used to procure government-regulated carbon credits on behalf of MIT.
What are carbon credits?
Carbon credits are certificates representing quantities of greenhouse gases that have been kept out of the air or removed from it. Carbon credits can be purchased and/or traded within voluntary or regulatory markets. Carbon credits represent a reduction in carbon dioxide and other greenhouse gas emissions to compensate for emissions made elsewhere. Purchasing carbon credits is one way for an organization to address emissions it is unable to eliminate itself.
Climate Vault’s unique approach is to purchase carbon credits or “permits” in regulated “cap-and-trade” carbon markets and retiring or “vaulting” them so they cannot be used by the regulated greenhouse emitters—such as commercial power plants—that are in the cap-and-trade market. Because the number of carbon permits is capped, this decreases the amount of global carbon dioxide pollution allowed by government regulators.
What is a cap-and-trade carbon market?
A cap-and-trade system (or emissions trading system) sets the total amount of emissions that can be released. Then the government issues a limited number of emissions permits, either by giving them away freely to emitters, or through an auction. For each ton of emissions released, the emitter must have a permit. Permits can be traded, so emitters who can’t cost-effectively lower their emissions must buy extra permits from emitters who can. The resulting carbon price then depends on the supply and demand for permits.
Why did MIT choose Climate Vault?
Climate Vault offers a novel, transparent, and efficient method to offset carbon emissions in a way that strengthens the measurement and verification of emissions reductions achieved from the project—a credibility problem associated with many other carbon credit projects. Climate Vault purchases carbon pollution permits from regulated markets and thus removes them permanently from the marketplace. Every permit vaulted is one less ton of greenhouse gases (GHG) produced, so it is possible to know exactly how much of an impact a carbon credit purchased by Climate Vault accomplishes.
One framework for evaluating the quality or effectiveness of different carbon credit projects is known as the “AVID+” framework that indicates effective carbon credits would meet the basic characteristics of being additional, verifiable, immediate, durable, and provide additional community co-benefits. According to Climate Vault, their carbon credits meet these performance criteria as follows:
—Additional: By purchasing and vaulting carbon allowances from compliance carbon markets (CCMs) like the Regional Greenhouse Gas Initiative (RGGI), Climate Vault is creating an immediate reduction of the “cap” within that market. Given that the RGGI market has a finite number of allowances, every allowance or ton that Climate Vault removes is additional because it means one less ton can be emitted.
—Verifiable: Verifiability is a central reason why Climate Vault’s solution is based on the compliance markets. RGGI is managed and enforced by state regulators. There is a fixed and published number of allowances (the “cap”) within RGGI, with all allowances being serialized and tracked within their carbon allowance tracking system (COATS). In addition, the market provides real-time verifiability via the market price for these allowances. If RGGI’s cap were not enforced and allowances not verifiable, then the price of allowances would go to zero, and minute by minute we have evidence that that is not the case. This government regulation and enforcement ensures that allowances that Climate Vault purchases and vaults on behalf of our partners are verifiable reductions.
—Immediate: Climate Vault’s solution delivers immediate reductions and impact because we’re able to leverage the large scale and liquidity of the compliance carbon markets. Climate Vault’s standard process is to purchase and vault emissions allowances within DAYS (not weeks, months, or years) of receiving funds from our partners. This process immediately lowers the effective cap within the market. That means that all of Climate Vault’s partners (no matter how large their required amount of tons) can claim immediate reductions, and do not have to wait for a project to come online or reach full capacity.
—Durable: In addition to being immediate and verifiable, Climate Vault’s solution is also durable because our vaulted carbon allowances are not susceptible to external environmental factors. Climate Vault’s reductions cannot be undone by wildfires, corrosion, disease, or other external forces.
—+(Plus): Aside from the straight emission reductions driven by Climate Vault’s solution, there are also significant co-benefits created by the funds the RGGI market generates from the sale of allowances. Specifically, the proceeds from the allowances are used to support local communities with targeted assistance to disadvantaged and low-income communities and households. From 2008 - 2022, Massachusetts state-owned allowances through RGGI have generated more than $776 million with over $546.7 million already invested in local communities. Proceeds have been used for energy efficiency programs, clean energy investments in new technologies such as offshore wind, and creating well-paying green jobs to provide a better quality of life for all Massachusetts residents. This includes focused environmental justice initiatives that include impacted communities in the decision-making and program implementation process.
How will Climate Vault use my purchases to offset carbon emissions?
Climate Vault uses your payment (pooled with other MIT purchases) to purchase carbon permits from government-regulated cap-and-trade markets. These permits are then retired or "vaulted," making them unavailable for use by carbon emitters including utilities and power plants.
What is a permit and who is purchasing them?
A permit is a government-issued allowance that allows the holder to emit one ton of greenhouse gases. MIT funds will enable Climate Vault to purchase these permits from secondary markets.
How can I learn more about Climate Vault and its approach?
Visit Climate Vault’s FAQ to learn more including how Climate Vault differs from traditional carbon credits, an explanation of compliance markets, and more about the permitting process.
How do I know my contribution is making an impact?
Climate Vault operates in transparent, government-regulated markets and regularly undergoes audits. This ensures that your contributions have a real and measurable impact on reducing carbon emissions.
Is there public reporting available on MIT travel and the resulting emissions?
Yes. The MIT Business Travel - Scope 3 Emissions dashboard provides data visualizations of travel by school and fiscal year and is available to MIT community members with Touchstone authentication at the MIT Sustainability DataPool.
How will Climate Vault report on the funds collected?
Climate Vault will provide MIT with regular updates on the total funds collected through the MIT Air Travel Carbon Offset Pilot program and the total carbon credits purchased with those funds. MIT will regularly report this data to the MIT community. These updates provide transparency and accountability for all contributors.
Will Climate Vault disclose information about the carbon permits purchased?
Yes, Climate Vault will share information about the carbon permits that have been purchased by MIT travelers using MIT funds. Climate Vault will provide MIT with details on the real and measurable impact of the program.
How will this pilot program be evaluated?
The pilot will be assessed based on key performance indicators such as participation rates, total funds collected, and the amount of carbon emissions offset. Feedback from participants on the convenience of the program will also be considered.
What happens after the pilot program is evaluated?
After evaluation, the program may undergo updates based on the collected data and feedback. This may include the addition or replacement of carbon credit providers available on the Buy-to-Pay platform. The goal is to finetune the initiative for maximum effectiveness.
Will this program be rolled out to the broader MIT community?
Yes, after the evaluation and any necessary updates, the program is expected to be expanded to include more members of the MIT community.
I have a question that was not asked here and/or would like more information.
For any additional questions or feedback, please email traveloffset@mit.edu.