TerraPass to allow firms to mix and match offset funding

US carbon offset provider TerraPass has launched a new service designed to allow customers to select the type of carbon reduction project they want to support when buying offset credits.

Writing on the company's blog last week, Tom Arnold said customers buying offset credits could click on a new "change my portfolio" link and select the type of projects from which they want their credits to come.

The service will allow users to "mix and match in 1,000 pound increments until you get the blend of clean energy, farm power and landfill gas capture that you want", Arnold explained.

Offering customers the opportunity to select offsets by project type is a growing trend in the carbon offset market, with advocates claiming it promotes transparency in the sector and gives customers a better understanding of how their money funds carbon reduction projects.

Speaking to Greenbiz.com, TerraPass chief executive Erik Blachford said that the approach would also help customers limit the risk presented by failed projects: "Offering offsets by project type instead of by a single project itself takes out the risk – diversification is always a good idea," he said. "Putting funds into a portfolio of projects makes it safer."