A partnership between Allianz and WWF now lets German drivers offset their car’s carbon dioxide emissions – the first in a series of products and services to encourage climate-conscious driving.
 | Picture Gallery (click on the image to start)Carbon offsetting companies promise to neutralize greenhouse gas emissions. Does it work? (Photo: Reuters) |
Much of climate protection, say the experts, comes down to consumer choices. Conventional or "green" electricity? Meat or veggie burger? Fly or take the train? But for many people who must use a car every day, there are sometimes few viable, climate-friendly alternatives.
A partnership between Allianz and the World Wide Fund for Nature (WWF) aims to make being a climate-conscious motorist in Germany just a little bit easier. The new "ECOmotion" plan lets drivers neutralize their car's emissions by purchasing CO2-mitigation certificates in combination with their auto insurance.
Allianz offers a Gold Standard CO2-mitigation certificate and - for low-emissions vehicles - a snazzy climate-neutral sticker. Prevent, reduce, neutralize - it's a trio of mitigation measures that Allianz supports with these new products and services, as well as those planned for the medium term.
"Our highly mobile society will not be able to eliminate CO2 emissions entirely from vehicle traffic any time soon," explains Karl-Walter Gutberlet, board member of Allianz Insurance. "But as an insurer, we can encourage environmentally aware conduct, and thus help reduce emissions."
The nuts and bolts
There are also plans to introduce a special insurance rate plan. Allianz's rate plans already take account of kilometers driven - low-mileage drivers have been benefiting from that for years. But Allianz and WWF will also work with other partners to develop a concept for incorporating CO2 emissions into future rate plans.
"What interests us as an insurer is how environmentally aware driving affects environmental damage," says Gutberlet. "But there are also indications that environmentally aware drivers are also good insurance clients."
But how exactly does buying ECOmotion help the climate? ECOmotion customers purchase a CO2-reduction certificate from Allianz along with car insurance, and thus invest directly in projects to protect the climate.
 | Tell the WorldEvery car insured by an ECOmotion purchaser and that emits less than 140 grams of CO2 per kilometer gets a sticker with the WWF seal |
One of Europe's leading emissions trading and CO2 asset management firms, 3C Consulting GmbH, reviews and selects high-quality climate protection projects that meet the requirements of the recognized Gold Standard. These might be solar installations or wind farms built in place of coal-fueled power plants, or biogas plants that generate energy in place of fossil-fueled units. The sale of ECOmotion CO2-mitigation certificates helps to finance these projects.
The cost of a certificate depends on the type of vehicle, the number of kilometers driven per year, and the current price of mitigation certificates on the world market. For example, a CO2-mitigation certificate for a Volkswagen Passat driven 11,000 kilometers a year is about 37 euros. That allows a client to neutralize a car's emissions for an entire year.
Every client who buys ECOmotion receives confirmation that the certificate has been bought. Additionally, every car that is insured by an ECOmotion purchaser and that emits less than 140 grams of CO2 per kilometer gets a sticker with the WWF seal. This limit for 2007-08 conforms to the voluntary self-regulation standards for the German automotive industry that are currently in effect. The limit will be lowered in the future.
Paved with gold
Almost every environmental organization that promotes international climate protection has joined the Climate Action Network (CAN). Led by the WWF, and with the cooperation of scientists, they have jointly developed the "Gold Standard" for climate protection projects. These go beyond Kyoto Protocol requirements.
Gold Standard projects are either based exclusively on renewable energies (solar, wind, biomass, or hydroelectric power) or energy efficiency. Additionally, the projects cannot adversely affect the local environment, biodiversity, soil quality, or social conditions of the local population.
"The traffic sector plays a key role in climate protection," says Eberhard Brandes, managing director of WWF Germany. In the European Union, transportation accounts for around 27 percent of all CO2 emissions.
"Allianz's ECOmotion concept is an important contribution toward emphasizing that point," adds Brandes. "Consciousness-raising and compensating for emissions are important first steps. But it doesn't end there. The next step will be to promote environmentally friendly driving habits and environmentally friendly engine standards."
editor: Breda O'Hara, from an article first published in the "Allianz Journal"
publishing date: December 5, 2007
