Village Green Energy has announced the launch of a new carbon offset product that enables consumers to buy carbon permits out of a newly launched carbon cap and trade system in the Northeast United States. This creates a more credible product at a fraction of the cost of the options offered by existing offset providers, said the company.

Village Green Energy, a San Francisco based provider of Renewable Energy Certificates and carbon offsets, will allow customers to participate in the Regional Greenhouse Gas Initiative (RGGI). The new cap-n-trade system in the Northeast United States, forces power plants to hold one carbon permit for every ton of carbon dioxide they emit. Regulators issue a finite number of permits (the cap) and reduce the number available each year, thereby forcing power plants cut emissions.

Village Green enables customers to purchase these permits for their own use, essentially tightening this cap and forcing power plants to cut emissions further. Because the number of permits is directly linked to total emissions, a customers purchase of one permit guarantees the reduction of a ton of carbon dioxide.

Unlike most other offsets, RGGI permits are tracked through an online accounting system run by RGGI regulators. Each permit has a unique serial number which enables customers to verify that permits were not double-counted.

"Interacting with RGGI gives our customers a much clearer idea of exactly how they are reducing carbon emissions," said Village Green CEO Mike Jackson. "Rather than trusting our internal calculations, consumers are relying on a heavily regulated program run by 10 state governments, and can verify for themselves that the permits we sell are not double-counted," added Mike. 

Village Green also provides transparent pricing of its new product to businesses, charging a 10% margin on each transaction, ensuring 90% of the money goes towards the reduction of carbon dioxide emissions. At current prices within the RGGI market, Village Green is able to offer one of the cheapest products on the market, with prices around $4/ton. A survey of prominent offset providers indicates prices as high as $18/ton, said Village Green.

"Purchasing RGGI permits forces carbon reductions in the electric power sector, the main source of greenhouse gas emissions. As a result, we're funding innovation exactly where we need it," said the company.