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With limited EV options, Uber embraces carbon offsets in Latin America

MEXICO CITY, Nov 17 (Reuters) - Uber has set out to be carbon neutral by 2040, but the ride hailing

With limited EV options, Uber embraces carbon offsets in Latin America

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For an additional 0.37 Mexican pesos per kilometer, they can contribute towards the purchase of carbon credits for reforestation projects and a wind farm in Oaxaca to offset the emissions caused by their rides.\nCarbon offsets are controversial\nWhen countries and companies find it difficult or expensive to cut greenhouse gas emissions, they sometimes use offsets to meet climate goals. These allow buyers to keep polluting while paying someone else to take climate friendly action.\nUber's own climate report last year said the company avoided buying offsets as a primary strategy, instead emphasizing subsidies for its drivers to switch to electric vehicles (EVs). Offsets \"effectively pay to make it someone else's responsibility\" and have \"weaknesses,\" including verification challenges, Uber's report said.\nIn parts of Latin America, however, the company told Reuters a transition for drivers to zero emission EVs was \"impractical\" in the near term, given nascent EV markets there.\nSo in Mexico, Colombia, Ecuador and Costa Rica it is using the Uber Planet offset scheme, alongside efforts to encourage drivers to switch to EVs, it said.\nThe decision underscores the difficulties transport companies face as they try to reduce their carbon footprints in emerging markets with relatively few sustainable alternatives.\nAccording to data analytics firm J.D. Power, electric and hybrid vehicles comprise just 6.4% of Mexico's car market, compared with 15% worldwide. By 2030, the market share is seen hitting 12% in Mexico, far behind the 50.5% predicted globally.\nMAKING A DIFFERENCE?\nUber Planet buys credits in projects that have been certified by organizations such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Climate Action Reserve <a href=\"https://laohu8.com/S/CAR\">$(CAR)$</a>, a not-for-profit registry.\nCertification is supposed to confirm projects would not otherwise exist without the sale of carbon credits, giving assurance they are genuinely creating offsets.\nBut <a href=\"https://laohu8.com/S/AONE.U\">one</a> Mexican scheme supported by Uber, the Oaxaca IV wind farm project, may have gone ahead without the credits, according to Gilles Dufrasne, a policy officer at not-for-profit industry monitor Carbon Market Watch.\nThe certification documents for the project from 2011, reviewed by Reuters, showed carbon credits would provide about a 1% increase in its internal rate of return.\nThe farm's developers said in the documents, filed to the UNFCCC, that carbon credits were vital to secure financing.\nBut Dufrasne said the modest benefit raised questions whether they were needed.\n\"The whole point of selling carbon credits is to have some way of measuring extra (emissions) reductions which would not have happened without the sale of the credits,\" he said. \"But if they were going to build the project anyway, then what you're paying now is just not making any difference.\"\nDanny Cullenward, an offset specialist at CarbonPlan, a not-for-profit research group who reviewed the project documents too, also questioned whether the sale of credits was necessary to secure financing, noting the wind farm had a deal for the government to buy its output at a guaranteed price.\n\"This isn't some business venture that's kind of risky and needs a little boost to stay afloat,\" said Cullenward. \"It's an infrastructure project with commercial mature technology that had a fixed price contract with the Mexican government.\"\nA spokesperson for Spain's Acciona , the parent company of Oaxaca IV, said the project was vetted under the UNFCCC's Clean Development Mechanism.\n\"The very fact that the U.N. included the Oaxaca IV project under the CDM mechanism is in itself proof of the contribution of the wind farm to the U.N.'s sustainable development goals,\" the spokesperson said.\nThe UNFCCC did not respond to requests for comment.\nThe wind project accounts for about 16% of Uber Planet's carbon credit purchases in Mexico, according to data on Uber's local website. Of the 8,668 credits it bought from Honduras-based carbon credit broker Anaconda Carbon between February and August, almost 1,400 were from the project.\nUber referred questions about the project to Anaconda.\nAnaconda President Christian Giles told Reuters the wind farm was properly validated and revenue from carbon credits was vital to it.\n\"That argument was audited, not only by a third independent party, but also by the U.N. itself,\" he said, referring to the UNFCCC.\n'DOUBLE THE TIME'\nCompanies are under pressure from activists, investors, politicians and even each other to cut emissions.\nIn Mexico City, Uber faces new competitors like Beat Tesla, with an all-electric fleet of Teslas. China's Didi Global, meanwhile, says it has 1,600 hybrid or electric vehicles in Mexico.\nUber says it is determined to cut emissions.\n\"Every market where Uber is available will be taking bold steps to develop locally relevant strategies that move in parallel with our commitments. At this moment, we are presenting Uber Planet, understanding the urgency needed to crack down on this challenge immediately,\" said David Mínguez, an Uber spokesperson in Mexico.\nHe said the company would take steps \"within the coming months\" to encourage more drivers to switch to electric or hybrid cars, including promotional prices for the vehicles and incentives like an extra 10,000 pesos per 160 trips.\nHe predicted more than 600 of its drivers in Mexico would be able to change to an electric or hybrid vehicle in 2022. Uber has around 200,000 drivers and delivery partners in the country.\nThe high price of EVs puts them out of reach for most Mexicans, whose average daily salary is less than $21, while the country lacks the tax incentives and charging infrastructure to encourage drivers to switch.\n\"We are going to move to that but it's going to take more than double the time it will happen for all other parts of the world,\" predicted Gerardo Gomez, director and country manager for J.D. Power in Mexico.\n($1 = 20.5090 Mexican pesos)","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>With limited EV options, Uber embraces carbon offsets in Latin America</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWith limited EV options, Uber embraces carbon offsets in Latin America\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\nReuters \n2021-11-17 20:25\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\nMEXICO CITY, Nov 17 (Reuters) - Uber has set out to be carbon neutral by 2040, but the ride hailing company has picked a route in parts of Latin America that is fraught with challenges.\nSince February, the U.S. group has offered customers in Mexico an \"Uber Planet\" option. For an additional 0.37 Mexican pesos per kilometer, they can contribute towards the purchase of carbon credits for reforestation projects and a wind farm in Oaxaca to offset the emissions caused by their rides.\nCarbon offsets are controversial\nWhen countries and companies find it difficult or expensive to cut greenhouse gas emissions, they sometimes use offsets to meet climate goals. These allow buyers to keep polluting while paying someone else to take climate friendly action.\nUber's own climate report last year said the company avoided buying offsets as a primary strategy, instead emphasizing subsidies for its drivers to switch to electric vehicles (EVs). Offsets \"effectively pay to make it someone else's responsibility\" and have \"weaknesses,\" including verification challenges, Uber's report said.\nIn parts of Latin America, however, the company told Reuters a transition for drivers to zero emission EVs was \"impractical\" in the near term, given nascent EV markets there.\nSo in Mexico, Colombia, Ecuador and Costa Rica it is using the Uber Planet offset scheme, alongside efforts to encourage drivers to switch to EVs, it said.\nThe decision underscores the difficulties transport companies face as they try to reduce their carbon footprints in emerging markets with relatively few sustainable alternatives.\nAccording to data analytics firm J.D. Power, electric and hybrid vehicles comprise just 6.4% of Mexico's car market, compared with 15% worldwide. By 2030, the market share is seen hitting 12% in Mexico, far behind the 50.5% predicted globally.\nMAKING A DIFFERENCE?\nUber Planet buys credits in projects that have been certified by organizations such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Climate Action Reserve <a href=\"https://laohu8.com/S/CAR\">$(CAR)$</a>, a not-for-profit registry.\nCertification is supposed to confirm projects would not otherwise exist without the sale of carbon credits, giving assurance they are genuinely creating offsets.\nBut <a href=\"https://laohu8.com/S/AONE.U\">one</a> Mexican scheme supported by Uber, the Oaxaca IV wind farm project, may have gone ahead without the credits, according to Gilles Dufrasne, a policy officer at not-for-profit industry monitor Carbon Market Watch.\nThe certification documents for the project from 2011, reviewed by Reuters, showed carbon credits would provide about a 1% increase in its internal rate of return.\nThe farm's developers said in the documents, filed to the UNFCCC, that carbon credits were vital to secure financing.\nBut Dufrasne said the modest benefit raised questions whether they were needed.\n\"The whole point of selling carbon credits is to have some way of measuring extra (emissions) reductions which would not have happened without the sale of the credits,\" he said. \"But if they were going to build the project anyway, then what you're paying now is just not making any difference.\"\nDanny Cullenward, an offset specialist at CarbonPlan, a not-for-profit research group who reviewed the project documents too, also questioned whether the sale of credits was necessary to secure financing, noting the wind farm had a deal for the government to buy its output at a guaranteed price.\n\"This isn't some business venture that's kind of risky and needs a little boost to stay afloat,\" said Cullenward. \"It's an infrastructure project with commercial mature technology that had a fixed price contract with the Mexican government.\"\nA spokesperson for Spain's Acciona , the parent company of Oaxaca IV, said the project was vetted under the UNFCCC's Clean Development Mechanism.\n\"The very fact that the U.N. included the Oaxaca IV project under the CDM mechanism is in itself proof of the contribution of the wind farm to the U.N.'s sustainable development goals,\" the spokesperson said.\nThe UNFCCC did not respond to requests for comment.\nThe wind project accounts for about 16% of Uber Planet's carbon credit purchases in Mexico, according to data on Uber's local website. Of the 8,668 credits it bought from Honduras-based carbon credit broker Anaconda Carbon between February and August, almost 1,400 were from the project.\nUber referred questions about the project to Anaconda.\nAnaconda President Christian Giles told Reuters the wind farm was properly validated and revenue from carbon credits was vital to it.\n\"That argument was audited, not only by a third independent party, but also by the U.N. itself,\" he said, referring to the UNFCCC.\n'DOUBLE THE TIME'\nCompanies are under pressure from activists, investors, politicians and even each other to cut emissions.\nIn Mexico City, Uber faces new competitors like Beat Tesla, with an all-electric fleet of Teslas. China's Didi Global, meanwhile, says it has 1,600 hybrid or electric vehicles in Mexico.\nUber says it is determined to cut emissions.\n\"Every market where Uber is available will be taking bold steps to develop locally relevant strategies that move in parallel with our commitments. At this moment, we are presenting Uber Planet, understanding the urgency needed to crack down on this challenge immediately,\" said David Mínguez, an Uber spokesperson in Mexico.\nHe said the company would take steps \"within the coming months\" to encourage more drivers to switch to electric or hybrid cars, including promotional prices for the vehicles and incentives like an extra 10,000 pesos per 160 trips.\nHe predicted more than 600 of its drivers in Mexico would be able to change to an electric or hybrid vehicle in 2022. Uber has around 200,000 drivers and delivery partners in the country.\nThe high price of EVs puts them out of reach for most Mexicans, whose average daily salary is less than $21, while the country lacks the tax incentives and charging infrastructure to encourage drivers to switch.\n\"We are going to move to that but it's going to take more than double the time it will happen for all other parts of the world,\" predicted Gerardo Gomez, director and country manager for J.D. Power in Mexico.\n($1 = 20.5090 Mexican pesos)\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"UBER":"优步"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2184837937","content_text":"MEXICO CITY, Nov 17 (Reuters) - Uber has set out to be carbon neutral by 2040, but the ride hailing company has picked a route in parts of Latin America that is fraught with challenges.\nSince February, the U.S. group has offered customers in Mexico an \"Uber Planet\" option. For an additional 0.37 Mexican pesos per kilometer, they can contribute towards the purchase of carbon credits for reforestation projects and a wind farm in Oaxaca to offset the emissions caused by their rides.\nCarbon offsets are controversial\nWhen countries and companies find it difficult or expensive to cut greenhouse gas emissions, they sometimes use offsets to meet climate goals. These allow buyers to keep polluting while paying someone else to take climate friendly action.\nUber's own climate report last year said the company avoided buying offsets as a primary strategy, instead emphasizing subsidies for its drivers to switch to electric vehicles (EVs). Offsets \"effectively pay to make it someone else's responsibility\" and have \"weaknesses,\" including verification challenges, Uber's report said.\nIn parts of Latin America, however, the company told Reuters a transition for drivers to zero emission EVs was \"impractical\" in the near term, given nascent EV markets there.\nSo in Mexico, Colombia, Ecuador and Costa Rica it is using the Uber Planet offset scheme, alongside efforts to encourage drivers to switch to EVs, it said.\nThe decision underscores the difficulties transport companies face as they try to reduce their carbon footprints in emerging markets with relatively few sustainable alternatives.\nAccording to data analytics firm J.D. Power, electric and hybrid vehicles comprise just 6.4% of Mexico's car market, compared with 15% worldwide. By 2030, the market share is seen hitting 12% in Mexico, far behind the 50.5% predicted globally.\nMAKING A DIFFERENCE?\nUber Planet buys credits in projects that have been certified by organizations such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Climate Action Reserve $(CAR)$, a not-for-profit registry.\nCertification is supposed to confirm projects would not otherwise exist without the sale of carbon credits, giving assurance they are genuinely creating offsets.\nBut one Mexican scheme supported by Uber, the Oaxaca IV wind farm project, may have gone ahead without the credits, according to Gilles Dufrasne, a policy officer at not-for-profit industry monitor Carbon Market Watch.\nThe certification documents for the project from 2011, reviewed by Reuters, showed carbon credits would provide about a 1% increase in its internal rate of return.\nThe farm's developers said in the documents, filed to the UNFCCC, that carbon credits were vital to secure financing.\nBut Dufrasne said the modest benefit raised questions whether they were needed.\n\"The whole point of selling carbon credits is to have some way of measuring extra (emissions) reductions which would not have happened without the sale of the credits,\" he said. \"But if they were going to build the project anyway, then what you're paying now is just not making any difference.\"\nDanny Cullenward, an offset specialist at CarbonPlan, a not-for-profit research group who reviewed the project documents too, also questioned whether the sale of credits was necessary to secure financing, noting the wind farm had a deal for the government to buy its output at a guaranteed price.\n\"This isn't some business venture that's kind of risky and needs a little boost to stay afloat,\" said Cullenward. \"It's an infrastructure project with commercial mature technology that had a fixed price contract with the Mexican government.\"\nA spokesperson for Spain's Acciona , the parent company of Oaxaca IV, said the project was vetted under the UNFCCC's Clean Development Mechanism.\n\"The very fact that the U.N. included the Oaxaca IV project under the CDM mechanism is in itself proof of the contribution of the wind farm to the U.N.'s sustainable development goals,\" the spokesperson said.\nThe UNFCCC did not respond to requests for comment.\nThe wind project accounts for about 16% of Uber Planet's carbon credit purchases in Mexico, according to data on Uber's local website. Of the 8,668 credits it bought from Honduras-based carbon credit broker Anaconda Carbon between February and August, almost 1,400 were from the project.\nUber referred questions about the project to Anaconda.\nAnaconda President Christian Giles told Reuters the wind farm was properly validated and revenue from carbon credits was vital to it.\n\"That argument was audited, not only by a third independent party, but also by the U.N. itself,\" he said, referring to the UNFCCC.\n'DOUBLE THE TIME'\nCompanies are under pressure from activists, investors, politicians and even each other to cut emissions.\nIn Mexico City, Uber faces new competitors like Beat Tesla, with an all-electric fleet of Teslas. China's Didi Global, meanwhile, says it has 1,600 hybrid or electric vehicles in Mexico.\nUber says it is determined to cut emissions.\n\"Every market where Uber is available will be taking bold steps to develop locally relevant strategies that move in parallel with our commitments. At this moment, we are presenting Uber Planet, understanding the urgency needed to crack down on this challenge immediately,\" said David Mínguez, an Uber spokesperson in Mexico.\nHe said the company would take steps \"within the coming months\" to encourage more drivers to switch to electric or hybrid cars, including promotional prices for the vehicles and incentives like an extra 10,000 pesos per 160 trips.\nHe predicted more than 600 of its drivers in Mexico would be able to change to an electric or hybrid vehicle in 2022. Uber has around 200,000 drivers and delivery partners in the country.\nThe high price of EVs puts them out of reach for most Mexicans, whose average daily salary is less than $21, while the country lacks the tax incentives and charging infrastructure to encourage drivers to switch.\n\"We are going to move to that but it's going to take more than double the time it will happen for all other parts of the world,\" predicted Gerardo Gomez, director and country manager for J.D. Power in Mexico.\n($1 = 20.5090 Mexican pesos)","news_type":1},"isVote":1,"tweetType":1,"viewCount":2886,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"CN","currentLanguage":"CN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"upFlag":false,"length":2,"xxTargetLangEnum":"ZH_CN"},"commentList":[],"hasMoreComment":false,"orderType":2}