Project: Carbon Offsets and Internal Carbon Pricing

Stanford’s goal of net zero emissions by 2050 will require the use of carbon offsets to address residual emissions from Scopes 1, 2, and 3, which cannot be fully eliminated. Offsets can play a role in addressing the climate crisis by counteracting unavoidable residual emissions, offering a cost-effective solution for institutions like Stanford. As decarbonization becomes more expensive, investing in cheaper, high-quality emissions reductions through offsets elsewhere can support global mitigation efforts. However, the current voluntary carbon market lacks proper oversight and accountability, leading to concerns about the actual effectiveness, permanence, and climate justice impact of many offset projects.

Project Goals

The goal of this project was to answer the following questions:

• Climate goal setting: What is responsible leadership in climate goal setting? Is it having a net zero goal or backing away from one?
• Carbon offset policy: How should Stanford approach carbon offsets? How can we mitigate most efficiently while maintaining confidence in the emissions reduction and environmental justice impact?
• Internal carbon pricing: Should Stanford use an internal carbon price to aid decision making and, if so, what should it be?

Project Achievements

The project resulted in the following recommendations to the school:

Mandatory internal carbon price for air travel: Implement a department-level carbon tax for business air travel, following California’s cap-and-trade market price. This measure would fund Scope 1 and 2 decarbonization, targeting air travel, which generates 93% of business travel emissions. Stanford should adopt this strategy, as several peer institutions have done.

Centralized committee for carbon offset projects: Establish a working group with diverse stakeholders to vet and approve voluntary carbon removal offset projects, focusing on projects that capture emissions rather than merely avoiding them. The committee would ensure high-quality, environmentally just projects and provide a structure for offset procurement to support Stanford’s climate goals.

The project made four specific climate goal recommendations:

1. Set scope-specific climate goals, given the differing nature of Scopes 1, 2, and 3 emissions.
2. Establish 5-year and 10-year interim goals to ensure progress and accountability.
3. Define precise targets for decarbonization and offset use.
4. Accelerate Stanford’s net zero goal, aiming for earlier targets (2040 or 2035) for Scopes 1 and 2, rather than 2050.

Project Photos

Project Takeaways

This project was challenging for me because it involved managing three semi-distinct tasks—goal-setting, offset policy, and internal carbon pricing—each of which could have been its own fellowship, while also navigating a rapidly evolving climate action landscape. It was the culmination of four years of academic and extracurricular experiences, and it profoundly shaped my personal and professional growth. I learned to work with diverse stakeholders, navigate difficult conversations, and embrace the uncertainty of being at the forefront of sustainability efforts. This experience reinforced the importance of starting the hard work early and often, even when there are no clear solutions. Figuring out how to manage Stanford’s remaining emissions required applying the lessons from my public policy studies to real-world decisions. I believe the most important part of my work was starting crucial conversations about Stanford’s climate strategy, which I’m confident can become a global blueprint for impactful leadership.

What’s Next?

This fellowship project continues into AY 2024-2025 with a new student fellow continuing to evaluate best practices for carbon removal to support Stanford’s net zero planning.

Project Team

PRIMARY PARTNER: Stanford University Office of Sustainability

COLLABORATING PARTNERS: Land, Buildings & Real Estate, Vice President for Business Affairs