Your wallet is filled with credit and charge cards of every variety. Let's see, you use this one for frequent flying and this one to get cool gift rewards and this one gives you money back and...which is the one that helps the environment?
There are numerous ways for you to shop today that can reduce the climate impact of what you buy -- but there is not yet a uniform stamp of approval or rating system for the climate-friendliness of consumer products. So, until it's easier to identify climate-friendly products, a good option may be using a climate card. A climate or green card can achieve its purpose in a variety of ways, but, most importantly, they all allow you to give something back to the environment. More banks are offering green cards for several reasons: it makes sense, it's a novel way for consumers to participate in the green economy, and because consumers are asking for it. Green cards and climate cards, specifically, look and work like regular credit cards -- but do double-duty by working for the environment, too. The offerings are evolving quickly; but here are a few highlights that are either available now or are on the horizon:
- 1. Cards that offer reward points redeemable for
- a) low-carbon products,
b) products at merchants who've pledged to go carbon-neutral,
c) products at merchants who have pledged to offset the emissions generated by your purchases, and
d) cards that reward you with better interest rates when you buy climate-friendly products (such as insulation or ENERGY STAR appliances). For example, holders of the Wells Fargo rewards card can now use their points to back renewable-energy projects, while Bank of America's WorldPoints Rewards cardholders can buy environmental merchandise with their points. Other providers plan to unveil an eco-friendly card in which every reward point will go toward greenhouse gas reductions.
2. Cards that offer points specifically for use towards carbon offsets or renewable energy credits. Much like current mileage cards, these cards allow consumers to use their points for reward purchases. In this case, the rewards consist of carbon offsets and renewable energy credits (RECs). Consumers can participate in this segment of the green economy with little effort on their part, once they've enrolled.
3. Cards that offset all of your credit card purchases at no cost to you. In this case, you just buy the things you ordinarily do, but the card company (partnering with a carbon calculation service) then purchases emissions offsets such that your purchases are carbon-neutralized. For example, the Netherlands' Rabobank contributes to an approved (by World Wildlife Fund) climate project each time a customer makes a purchase with its new climate-conscious credit card.
4. Affinity cards encourage contributions to sponsoring partner nonprofits. In these long-established programs, sponsoring banks and merchants partner with nonprofit organizations to make a small contribution for every dollar spent. For example, a climate savior card might be similar to the Salmon Nation credit card from ShoreBank Pacific, which donates a percentage from each purchase to Ecotrust and Salmon Nation.
The climate-centric credit card industry is innovating quickly; each month seems to bring a new product offering to take green-friendly purchasing to a new level. For example, the soon-to-launch Brightplanet card will support new clean energy projects and carbon neutrality with each purchase. Although it's currently challenging to identify which credit cards are lower carbon than others, one way to maximize climate-friendliness is to use a green credit card which provides rewards in some form of climate currency. This will provide you with more options to direct your purchases to get the most climate-friendly bang for your buck. And, no matter which green credit card you choose, consider asking to receive monthly statements via email to save both paper and fuel. Trees, the atmosphere, and your mail carrier will thank you for it.
