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Our operational standard specifies the requirements for the collective carbon offset and reduction programme supported by the UK outbound travel and tourism industry using the Tourism Industry Carbon Offset Service (TICOS). It can be applied more widely with the express permission or license of the author.
In addition to our operating standard, we also have a comprehensive validation and verification standard for the projects we support. This is an extremely robust and rigorous standard incorporating key technical elements of The Gold Standard (an independent, transparent, internationally recognised benchmark for ‘high quality’ carbon offset projects) but with a greater emphasis on additionality and wider sustainable development benefits. Please contact Dick Sisman if you would like to see our validation standard in full.
1.0 Purpose of Standard
2.0 Scope of Standard
3.0 Definitions
3.1 Use of Non Regulatory Verified Emissions Reductions (VER's)
3.2 Separation of Functions to Ensure Integrity
3.3 Additionality
3.4 Independent Verification
3.5 Project Identification
3.6 Project Funding
3.7 Project Monitoring
3.8 Research
3.9 Carbon Calculations
3.10 Global Nature of Scheme
3.11 Additional Benefits
3.12 Project Reports
3.13 Annual Report
3.14 Transparency
3.15 Cost Efficiency
5.0 Methodology for Joining TICOS
6.0 The Raising and Allocation of Funds
8.0 Measuring Carbon Benefits and Carbon Air Miles
The purpose of our operational standard is to establish a consistent process for all outbound travel and tourism businesses to allow them to provide a collectively uniformed programme of carbon offset and reduction for their customers. Current offset schemes available to the industry use stated carbon benefits which vary by over 300%. One standard with one set of statistics will remove this confusion. There are three other key reasons why this standard is necessary:
The standard covers the fullest range of issues and methodologies to ensure that it is as robust, fair and as honest as is possible within a voluntary framework. It defines and stipulates action for the following elements:
3.1 Use of Non Regulatory Verified Emissions Reductions (VER's) The tourism industry is a truly global industry operating in almost all countries in the World. As such, it is important that its base for projects is global and applies in all countries including those who do not subscribe to a regulatory framework or to the Kyoto protocol. The key is to ensure that all projects and their achievements, in terms of carbon offset and reduction, are verified to the highest standard and are worked out to a consistent base. For example with a new solar unit the discounted time period should be the same in every case. All projects will be independently verified to the same standard. (Although VER's do not form a part of the regulatory market they can be counted as a part of a countries commitment to the Kyoto protocol)
3.2 Separation of Functions to Ensure Integrity To ensure the utmost integrity for the standard, a number of key tasks will be separated through contractual arrangements. Those collecting funds will not develop projects but will contract an independent company to do this. Similarly, the science and calculations for offset costs and benefits will be provided by a different contractor. Verification will be independent of all others. This will avoid the current concerns where one company both receives funds, works out the benefits and decides how the money will be spent.
3.3 Additionality All projects supported must demonstrate that they provide additional measurable benefits from reducing carbon emissions. Projects which do not achieve such additionality, for example the purchase of forests for protection, will not be deemed to have produced an offset benefit.
3.4 Independent Verification The whole offset programme will be subject to independent verification not just the carbon calculations or project benefits. Verification will include how the programme operates and how all finances are used. Thus any company working within this standard will be assured of a due diligence assessment.
3.5 Project Identification Projects can be nominated by any company subscribing to this standard as well as by any of the preferred partners agreed. Projects can be anywhere in the World where tourists visit. All projects supported by industry funding must have a tourism connection. All projects supported must reach a minimum level of carbon reduction as set by the science and calculations team.
3.6 Project Funding Any operator or agent raising funds can nominate the project or projects they wish to support. The amount of money allocated to projects will be determined by the project management team with advice from the project research team. This will usually vary between a pump priming grant for profit making companies through to full support for pro poor projects in economically disadvantaged countries.
3.7 Project Monitoring All projects will be carefully monitored and funding will be allocated against specific budget items. All projects will be displayed on a central website and updated regularly with photographs and text as they progress. Upon completion a certificate of completion will be issued.
3.8 Research An independent research team will assess the claims and bone fide of all project proposals before they are agreed for funding.
3.9 Carbon Calculations One carbon calculator will be used for all flights and other carbon costs. This will be based upon the best science available and will be kept up to date as knowledge and technology advances. Similarly, one single basis of calculations will be used to measure the benefits of all projects.
3.10 Global Nature of Scheme Projects will be accepted from any tourism destination in the World irrespective of whether or not the country is a signatory of the Kyoto protocol or have a regulated emissions programme.
3.11 Additional Benefits All projects will have to achieve an agreed level of carbon benefits to be eligible for funding. However projects with substantial environmental; social; economic; wildlife; landscape or pro poor benefits will be particularly promoted. TICOS will develop a new process to evaluate these additional benefits in a systematic way.
3.12 Project Reports Each project will be the subject of an individual six monthly report from the project management team. This information will be available on the project website.
3.13 Annual Report The aggregated industry programme will have an annual report. This will be made available to the public. It will contain information of all projects; all financial income and expenditure and give statistics such as carbon savings and numbers of flights offset.
3.14 Transparency The industry scheme will be transparent and open to scrutiny. It will lay bare any failures as well as successes. It will be designed to give the utmost confidence to its consumers and those exercising scrutiny.
3.15 Cost Efficiency Costs will be carefully controlled and published as a percentage of income. Over a five year period all operating costs will be kept to below 20% of income.
TICOS will be managed by a management team representing the tourism associations using the service and the principle technical advisors to the service. TICOS will not have a formal business structure or framework and will not employ staff. The work of TICOS will be carried out by specific named suppliers contracted to provide services to the scheme. These services will provide administration; design, develop and deliver VER projects; provide research and development skills; undertake science and carbon calculation duties and support through verification. The management process will incorporate a separation of functions and duties as a part of its due diligence requirements. As there will be no profits accruing to the owners of the service costs can be kept to the minimum level conducive to the operation of a high quality programme. The owners of TICOS wish for it to operate at a cost to its consumers of less than 20% of income over a five year period.
The TICOS service is available to any company working in the travel and tourism sector who accepts and agrees to conform to this standard. TICOS will help any member company to set up its offset programme; identify a methodology to raise funds (usually through a customer opt out fee); find an appropriate project(s) to receive funds raised; provide offset advice and information for the company and its customers.
Companies using the TICOS service can choose how to raise fund to support their own carbon offset and reduction programmes. This will ordinarily be through adding an agreed 'opt out' sum to invoices which customers can either pay or delete. In most cases this will be allocated against a predetermined project but not necessarily so. All funds raised will be kept in a stakeholder account and only allocated for use against specific services provided and to fund project activities. Total support and management costs will not exceed 20% of funds raised. Each project will have a project manager appointed and funds will only be released on an as needs basis and when evidence of progress is reported and verified. All projects will have a separate TICOS web page with regular progress reports and photographs and stories. Companies and customers will be able to follow a specific process linked to the money they have raised or donated by checking our project page.
The whole area of carbon offset and reduction is a volatile one. Any voluntary scheme has to operate within a climate of change at both the national and international level. TICOS is designed to have the flexibility to respond to legislation and opinion. It can also respond to changing technology and wider research which improves information. Operational control will therefore rest with a technical coordinator working as a member of the management team but with specific overall operational control. This coordinator will be responsible for ensuring the cohesion and exercise of common purpose by all contracted suppliers to TICOS. The coordinator will also act as TICOS CEO and be responsible for the overall operation of all parts of the service.
A specialist company will be contracted to undertake all carbon calculations and science based work for TICOS. This contract service will be reviewed on an annual basis. A common set of statistics and assumptions will be used for all flights and other carbon costs offset and common methodologies will be used in calculating carbon benefits - for example in fixing the period over which costs and benefits are to be discounted. It is not our intention to prescribe to the technical experts we contract the basis they should use for their calculations but these will be expected to reflect the balance of opinion and to take account of prevailing knowledge and technical change. All figures and statistics used will regularly be checked and tested against those used in other programmes. Our independent verification expert(s) will also need to be satisfied with all figures used.
As TICOS will be a voluntary scheme there are no regulatory risks in projects failing to reach prescribed targets with financial penalties. Risks are therefore restricted to those of confidence in the service and in the service providing the best value for money and necessary level of due diligence to generate company and customer confidence. By separating functions and in creating stakeholder accounts the risk of financial mismanagement is very low. Payments will only be authorised on the basis of invoices for services provided and for project expenditure. In exceptional circumstances funds may be released in advance when the project developer is from an economically disadvantaged background. By carefully selecting service providers on the basis of reputation and integrity we believe that risks from criticism or denigration of our work will be low. It will be our intention to act in an open and transparent way and to engage with any organisation which shares our objectives in a positive way.
© Dick Sisman,
27 November 2006