Climate Credit Card – Switzerland

The Climate Credit Card aims to make shopping climate-neutral. Offered through the Swiss company Cornèrcard, the card includes a climate calculator that automatically captures all emissions linked to credit card purchases, and reports the climate impact of purchases back to the card user. Climate impacts are offset via investments in emission reduction projects – without any extra cost to the user. By educating consumers on the specific climate impact of their purchases, the scheme aims to induce climate-friendly behavioral changes. It also has a direct impact, since it finances climate reduction projects around the world.

Fast facts:

800 users in Switzerland;
Winner of the Intelligence Finance Foresight Award in 2013;
Two wind farms financed in New Caledonia, avoiding about 40,000 tons of carbon dioxide emissions annually;

The problem

Climate change is happening, causing sea levels to rise, inundating coastal zones, and threatening agricultural production, among other impacts. Although there is an urgent need for climate action, many climate measures geared toward individuals are ineffective because they require proactive behavior. It is understood that knowledge about climate impact is a significant trigger to reducing emissions in Western households. Yet private consumers are often unaware of the climate impact of their daily purchases and overall consumption patterns.

The solution

The Climate Credit Card automates the process of tracking the climate impact of purchasing decisions, eliminating the opt-in process for carbon reduction. The card user gets detailed feedback on his or her carbon footprint relating products or services, and can then take steps and reduce it. For example, the user can see the extent of greenhouse gas emissions connected to air travel, and then opt to take a train instead.

At the same time, using the card also finances emission reduction projects – mainly in Africa, Asia and Latin America – such as improved cook stoves or installation of renewable energy facilities. Swiss credit card partner Cornèrcard offers a Visa or Mastercard at no additional cost to the consumer, since the credit card company finances the emission reductions component.

Helping the planet

The Climate Credit Card has the potential to mobilize flows of capital toward global emission reduction strategies. In countries where the cards are used, behavioral changes that reduce greenhouse gas emissions can be induced. Since the project also directly funds emission reduction projects on other continents, this helps reduce emissions there as well.

Helping people

The card benefits projects, individuals, communities, and groups in developing countries through sustainable development there. This helps create jobs, empower women, give children a better education and improve health conditions.

Scaling up

A range of Swiss celebrities and sustainability professionals have voluntarily endorsed the card as part of the ever-growing “Climate Heroes” group. Companies are the next target user – if large corporations choose the Climate Credit Card, this would tremendously increase subsequent revenue. Operations have expanded to Germany, and there has also been some interest from English and Swedish credit card providers.