LiveNeutral is a one-stop resource to learn about your carbon footprint and actions or changes in lifestyle you can take to reduce it, including the purchase of carbon offsets. You also can learn what AEP is doing to reduce, avoid or offset its emissions. LiveNeutral is designed to provide you with options to neutralize your greenhouse gas (GHG) emissions by participating in innovative market-based approaches. The following is a basic overview of how this works.

Every person has a carbon footprint that is unique, based upon personal day-to-day activities. Carbon dioxide (CO₂) is the main GHG attributed to climate change. How you travel, use electricity, and even how you eat are all contributing factors. For instance, how much packaging your food comes in, and how far it traveled to reach you, add to the carbon footprint of your meal.

Like you, companies also have carbon footprints. Many want to reduce these emissions voluntarily. The Chicago Climate Exchange (CCX), a voluntary emissions “cap and trade” program was created to help companies do this. The purpose of this voluntary effort is to have an overall positive impact on GHG emissions through a market-based system. The CCX program sets emissions reduction goals for its members and tracks their progress. Companies who exceed their goals can trade credits with those who fall short. In the big picture, as companies reach their goals, climate change emissions will be reduced each year.

Through the LiveNeutral AEP website, you can make personal decisions that will help to neutralize your emissions and positively affect the environment. The idea is not to buy offsets to continue negative behaviors, but rather to change your behavior to reduce emissions. For example, when buying offsets for a vehicle with low fuel efficiency consider what else you can do to improve the efficiency of your vehicle. Will more regular maintenance improve performance and efficiency? Or, if you are getting ready to purchase a new vehicle you could make a more energy efficient and environmentally friendly choice.

Regardless of the vehicle you drive, you are still going to emit GHGs. That’s where purchasing carbon offsets for your personal vehicle can make a difference. To do it, you first need to calculate your carbon footprint. Then, learn ways to reduce your emissions through Smart Tips. Lastly, you can choose to purchase offsets to neutralize your emissions through LiveNeutral. This purchase drives demand for reduction credits and helps encourage CCX members to make further reductions.

The result? Fewer greenhouse gases. And a healthy and sustainable planet for everyone.

Questions and Answers on Emissions Offset Projects Sponsored by LiveNeutral:
More Q&As can be found on the full FAQ page.

How is it possible to neutralize emissions?
You neutralize your emissions by helping to fund large-scale emissions reductions that are taking place elsewhere in amounts equal to the emissions you generate. For example, if your car emitted 12,000 lbs. of CO2 last year, your donation will support 12,000 lbs. pounds of verified, CO2 reductions today.

However, the first step should always be to avoid or reduce your emissions before buying carbon offsets. Think about what you can do to reduce the emissions from your car, for example. See Smart Tips to learn more.

Where do these carbon reductions come from?
When you buy a carbon-neutral certification from LiveNeutral, we buy third-party-verified and legally accountable emissions reduction credits on your behalf through the Chicago Climate Exchange (CCX). These reduction credits then function as an offset for your emissions. Many companies and organizations besides LiveNeutral also purchase from the CCX, but they purchase offset project credits rather than the reduction credits we purchase.

How exactly are emissions reduction credits generated?
Most reductions are achieved through increased energy efficiency in member companies’ operations. For example, improving the efficiency of a power plant can reduce its emissions profile. About 10% of the reduction goals are achieved through the support of specific offset projects, such as methane destruction at farms and landfills, reforestation and forest conservation projects, low carbon farm tilling and displacing high carbon energy in the grid with clean, renewable energy.

What is the Chicago Climate Exchange?
Founded in 2003, the Chicago Climate Exchange functions as a kind of stock market for the reduction of greenhouse gas emissions. Its 200+ members include companies such as DuPont, Bayer, IBM, and American Electric Power, the states of Illinois and New Mexico, and municipalities such as Chicago and Oakland. Membership is voluntary, but members are legally bound to comply with reductions once they join. Upon joining, members calculate their average greenhouse gas emissions between 1998 and 2001. Each year, they aim to reduce emissions 6% below their annual baseline by 2010.

The CCX is North America’s only, and the world’s first global marketplace for integrating voluntary yet legally binding emissions reductions with emissions trading and offsets for all six greenhouse gases. CCX is a self-regulatory, rules-based Exchange designed and governed by CCX members. Members make a voluntary but legally binding commitment to reduce GHG emissions. The Phase I (program years 2003-2006) emission reduction target for each Member was 4% below baseline by 2006. The Phase II (program years 2007-2010) emission reduction target will require all Members to reduce 6% below baseline by 2010.

Why would a major corporation voluntarily reduce its emissions?
Many companies want to do it voluntarily because it makes good business sense and because there is a financial incentive. Companies that reduce more emissions than required can trade offsets with companies that didn’t meet their goals. As demand for credits increases, so does their price. In addition, it has become increasingly apparent that climate legislation is looming in the U.S. Congress and major corporations are likely to be affected. Thus companies who are building expertise now through CCX membership could have an advantage if future legislation takes the form of a cap-and-trade market to address carbon emissions.

How do I know companies will do what they say?
Qualified, independent experts verify all CCX member companies’ and offset projects’ reduction claims for authenticity and accuracy. In addition, the entire CCX platform is annually audited and reviewed by the Financial Industry Regulatory Association (FINRA – successor to The National Association of Securities Dealers (NASD)). No other United States emission reduction credits program has this level of enforceability and accountability.

Can I buy credits directly from the Chicago Climate Exchange?
No. Only CCX members can buy and trade credits on the Exchange. That’s where LiveNeutral comes in. Our parent organization, the Presidio School of Management, is a CCX associate member. We like to think of it as an experiment in democracy, opening the market to public participation.