Just Say No to the “Green Premium”

We as a society may be committed to transitioning to renewable energy sources, but paying a premium for companies to purchase renewable energy credits will not help us get there. By Will Sarni



Over the past year we have seen numerous surveys demonstrating consumers’ preference for green products. Apparently, this has encouraged some small businesses to charge a premium to support the purchase of renewable energy credits.

I sincerely hope this type of behavior won’t be tolerated for long.

We have seen green building design move from a premium service to the mainstream, ultimately becoming part of building code in some cities. We will likewise see a similar mainstreaming effect in other markets, as green products and services become more routine.

By charging a green premium, companies are actually working against this trend, separating responsible behavior from what should be simply a part of day-to-day business operations.

As a member of the Chicago Climate Exchange (CCX), my company has made a commitment to reducing its carbon footprint. We never would expect our clients to pay an extra charge for our services because of our participation in CCX, and I am unaware of any CCX member or associate member that passes along the cost to reduce their carbon footprint.

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Will Sarni is CEO of sustainability consulting firm DOMANI. He is also SLM's expert-in-residence on climate strategy and the host of Climate Management Weekly.

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