S2, E20: Exploring Rick Steves’s Self-Imposed Carbon Tax

Can a $30 fee per traveler genuinely impact carbon offsets? For Rick Steves, the response is a resounding "yes." Over the past four years, his company has implemented a self-imposed carbon tax—donating $1 million in 2022 to a carefully chosen group of nonprofits aimed at offsetting the carbon footprint of their travelers. In this week’s episode of Unpacked, we converse with Craig Davidson, COO of Rick Steves’ Europe, about the workings of their Climate Smart Commitment program and its transformative effects.

Transcript

Aislyn Greene, host: I’m Aislyn Greene, and you’re listening to Unpacked, the podcast that tackles one complex travel topic each week. This week, we’re diving into the Rick Steves’ Europe Climate Smart Commitment. If you tuned into last week’s episode—which isn’t necessary for understanding this one—you might already be acquainted with this initiative. It’s fundamentally a self-imposed carbon tax.

For each traveler participating in a Rick Steves European tour, the company contributes $30 to a selected group of nonprofits. In this episode, we’ll hear from Craig Davidson, COO of Rick Steves’ Europe, discussing these nonprofits, the selection process, and the remarkable outcomes this program has achieved.

As I mentioned, you don’t need to have listened to last week’s episode to understand this one, but it does serve as a useful introduction to Rick Steves, his principles, and their evolution over the years—along with how he and his company perceive the world.

I’ve found them to be an impressively ethical and sustainable organization, and I truly hope they inspire other companies to follow their lead. Now, enough with the praise. Let’s dive into the show.

Aislyn: Hello, Craig. Welcome to Unpacked. I’m so glad to have you here today.

Craig Davidson, COO Rick Steves’ Europe: Thank you! I’m delighted to be here. I appreciate the invitation.

Aislyn: Absolutely. I just had a fantastic conversation with Rick about his ethical values and what inspired the creation of the Climate Smart Commitment. I’d love to delve into the details of that with you, especially since I know you played a significant role in its development. Could you explain to our listeners what this commitment entails?

Craig: The Climate Smart Commitment is essentially a reflection of our core values. At Rick Steves’ Europe, we prioritize education; we aim to promote thoughtful and responsible travel. We strive to be role models in both our personal and professional lives, advocating for humanity in a world that increasingly leans towards materialism and isolation.

We consistently place people at the heart of everything we do, whether in our travels or our programs. To me, this commitment represents the culmination of those values, serving as a significant aspect of our philanthropic efforts.

My background is rooted in the belief that a manager's role is to maximize shareholder value. During my studies, I often thought, That doesn’t make any sense. If maximizing shareholder value means prioritizing short-term profits—boosting dividends and making you rich while compromising the quality of air and water—I haven’t truly fulfilled my duty. I’ve always believed there should be ethical and social considerations in management. When I met Rick and joined his team, I discovered his deep commitment to social justice, as he has supported various causes financially for many years.

We organized these ideals into a cohesive framework, transitioning from a shareholder model to a stakeholder model, where we acknowledge that both the Earth and the community are stakeholders. Consequently, the community receives benefits, and we collaborate with local organizations to strengthen our community.

The Climate Smart Commitment represents our way of giving back to the Earth, compensating for the resources we utilize to generate profit. I view it just like any other investment. We understand that travel, particularly air travel, contributes to carbon emissions, which in turn drives climate change.

We designed this program to give back to the Earth by actively working to creatively offset the carbon emissions generated during travel, always keeping people at the center of our efforts.

Aislyn: I really appreciate that approach. There are many carbon offset programs available, and I know you explored those options. What led you to choose this path instead?

Craig: In our initial research, we examined those programs. However, they didn’t align with our identity as an organization. We prefer to be actively engaged and form partnerships with the organizations we support.

We want to comprehend the narratives behind the initiatives, build relationships, and know precisely where our funds are allocated. We favor projects that are entrepreneurial in nature, empowering systemic change that stabilizes lives and enables individuals to grow as entrepreneurs, ultimately transforming the circumstances that have placed them in their current situations.

Regarding carbon offsets, the straightforward reason for us is that we recognize significant administrative and overhead costs associated with purchasing offsets. We believed we could achieve greater impact by donating directly to organizations and gaining insight into the projects they’re pursuing.

This approach strengthens our connection to the projects once we know who is managing them.

Aislyn: That sounds wonderful! So for every traveler, you allocate $30 to invest in one of these selected organizations. How many organizations do you include in this portfolio, as you call it?

Craig: Exactly, it's a portfolio. I like to think of it as my mutual fund of organizations, where the main investment is in people. In 2022, with the number of travelers we had, that million dollars has been distributed to 13 nonprofits. Typically, the portfolio hovers between 10 to 13 organizations, each receiving around a hundred thousand dollars.

Aislyn: Got it. How did you choose and evaluate these organizations? It seems you’ve put in a lot of effort into this.

Craig: Absolutely, the initial selection process involved extensive vetting. I believe our program has evolved over the years and, in many ways, has become more engaging and effective.

Reflecting on what we’ve learned about global systemic injustice and various issues, our perspective has evolved over time.

We were inspired by a book called Drawdown, which we read while developing our approach. It discusses various carbon and climate projects to invest in, highlighting those with the most significant effects on climate change. Interestingly, the sixth most impactful initiative focuses on educating women and girls in developing countries.

The effects of this education are essentially immeasurable. We truly embrace the idea of education, which aligns with our identity as educators. By empowering communities through the education of women and girls, we ensure the lasting impact of our programs, perfectly aligning with our mission as an organization.

Consequently, every initiative we support must include this educational element. Additionally, we examined the social injustices inherent in the global capital market system. As capitalists, we appreciate profit, but the issue with the pursuit of maximizing shareholder value is that the capital system often neglects the underlying inputs.

It prioritizes the output’s value, focusing solely on profit. Unfortunately, this often leaves the producers behind. Therefore, we aimed to discover ways to genuinely enhance the lives of farmers in developing nations, helping them adopt farming practices that minimize climate change impact while also enabling them to adapt to its consequences.

Farmers find themselves in a difficult position, earning less each year as commodity prices continue to decline. While consumers prefer not to pay higher grocery prices, it’s the farmers who suffer the most. This issue also affects U.S. farmers, but those in the poorest nations face the brunt of climate change's impact.

Lacking the resources to effectively combat these challenges, their survival tactics often lead to deforestation or increased chemical use, attempting to extract more from their limited land. Unfortunately, these practices contribute to climate change by releasing carbon into the atmosphere, exacerbating the problem.

This is why we focus on these two critical areas. Organizations can apply for grants from us, which we assess based on these established criteria.

Aislyn: That’s intriguing. In your collaboration with organizations that support farmers, what specific actions do they take? How is the funding utilized?

Craig: Many of our initiatives focus on two main aspects: assisting farmers in adopting sustainable practices that reduce their climate impact while also helping them adapt to the realities of climate change.

Aislyn: I understand.

Craig: Yes, that's part of it, but an ongoing education component is crucial. Our partners collaborate with local organizations, focusing on building relationships rather than just providing funding or dictating actions. They work together to introduce technology and tools that enable farmers to cultivate more effectively. This includes teaching practices like organic farming; for instance, if they can produce compost, it becomes a free resource, reducing their reliance on expensive chemicals and boosting their income.

We consider it an investment in hydroponics because many farmers choose to participate in these programs, although some stick with traditional fertilizer methods. Those who opt in are supported to become entrepreneurs. With hydroponics and water-saving techniques, farmers can better withstand dry seasons and unpredictable weather, allowing for multiple harvests. This reduces the need for deforestation to increase crop land and enhances their income without harming the environment.

Many of these farmers live in extreme poverty and are constantly searching for firewood. They often have open fires in their homes for boiling water, which means children and women frequently leave to gather water or firewood.

Firewood collection contributes to deforestation, and the smoke from these fires adds to carbon emissions, while also preventing children from attending school. By introducing climate-smart cook stoves, one partner noted that a single stove can offset the carbon emissions equivalent to 30 trips to Europe. This means they might not need to cut down trees anymore. Additionally, we can teach restorative farming practices to ensure a sustainable fuel supply while using less overall.

By introducing chemical water filters, farmers can stop boiling water constantly, gaining access to clean water. This allows children to attend school, fostering a stronger community. Additionally, with better farming practices and higher yields, particularly through organic methods, farmers can earn more at market, alleviating the pressing need for deforestation.

We also focus on reforestation, establishing numerous nurseries and engaging in significant replanting efforts. This helps restore the area's biodiversity and brings the planet closer to its original state. As a result, farmers can thrive in the global market while maintaining a smaller ecological footprint, ultimately stabilizing the food supply.

Aislyn: Absolutely!

Craig: Indeed, when farmers lose hope or are unable to farm, they are forced to migrate, leading to additional challenges. Our approach aims to address this systematically by tackling climate issues in a way that also resolves the various side effects arising from climate change's impact on farmers.

Aislyn: I understand. This is a significant issue, especially regarding global food supply and security. At Dinogo, we’ve faced challenges in balancing these aspects. I’m curious about your perspective on mitigation—carbon emissions from flying are immediate, whereas these programs take time to yield results. How do you reconcile that?

Craig: We struggle with this as well. It’s challenging to address the urgency of offsetting, a term we prefer to avoid, especially when it comes to air travel. We tend to view it from a different perspective.

I’m sure you face similar challenges. We don’t want to get bogged down by the complexities of immediacy. Our goal is to be accountable and take action now while we navigate these ongoing issues. We learn continuously, and our program is gradually evolving to tackle more of these challenges as we gain insight.

Aislyn: Exactly. We don’t have all the answers either. What we’ve embraced is encouraging offsets in any way possible. I really admire your program and also believe it’s vital to promote thoughtful travel. Being a global citizen has immense value, but perhaps we can reduce short flights or seek alternative transport options. Additionally, we should support airlines exploring sustainable aviation fuel and carbon capture technologies. It feels like a balanced approach—hybrid, if you will.

Craig: I agree with that perspective. In our travel philosophy, we’ve always advocated for staying longer in one place, especially when visiting Europe. Our tours involve less frequent housekeeping, and we prioritize public transportation.

The essence of travel is to immerse oneself in the local culture—staying in local hotels with a smaller ecological footprint and dining at local eateries to ensure the community benefits from your spending. We’re fortunate that our travel style inherently minimizes our environmental impact. For instance, when in Europe, we often opt for trains between cities, maintaining our commitment to sustainable travel.

Aislyn: We're making progress.

Craig: Yes, we are.

Aislyn: I’m curious—now, any traveler can participate in the Climate Smart Commitment, right? While it’s primarily for your tour members, if I wanted to offset my upcoming trip to France, I could contribute. Do you have any recommendations for travelers on how to go about that?

Craig: Absolutely! It really boils down to accountability. As global citizens, we must recognize that our actions have consequences. If individuals take personal responsibility and grasp the issues at hand, we encourage them to be accountable.

If you’re passionate about a project like biofuels, support it if that resonates with you. Our program aligns with our organizational values. If you appreciate what we do, feel free to donate through our website at ricksteves.com. At the bottom, you’ll find a link to Climate Smart. Your contributions will enhance our self-imposed carbon tax and will be allocated to organizations that successfully apply for grants through our process.

If you visit our website and check out our portfolio, there’s always an option for individuals to directly support organizations they feel particularly drawn to. To me, taking action right now is the most crucial step any of us can take.

Aislyn: You launched this initiative in 2019. What changes or growth have you witnessed since then?

Craig: Regarding our projects and their successes, I'm thrilled to share that we’ve lifted three villages out of extreme poverty, which is quite an achievement. We’ve observed tangible impacts. One of our partners, who initially doubted the effectiveness of climate-smart farming techniques when we introduced them, has changed their perspective. They were traditional agronomists focused on chemicals, unsure how our methods would succeed. However, after implementing them, they now use our approach as a foundational model for all their future initiatives in developing regions.

This transition from skepticism to success is exhilarating. We moved from questioning, "Will it work?" to realizing, "Wow, this truly works, and the outcomes are remarkable! Let’s keep this momentum going." It has expanded my understanding of global systems, capital markets, food production, and the challenges faced by governments trying to do the right thing yet often falling short, which can negatively impact their citizens.

Currently, we're assisting tribes that have been displaced from their lands due to the establishment of national forests. These communities can no longer engage in sustainable farming or hunting practices because the land is now protected. Our goal is to help these groups reclaim their traditional territories from the government so they can manage them sustainably and continue living in harmony with their ecosystem.

Aislyn: Oh, nice!

Craig: It’s important to grasp how organizations often overlook the illegal deforestation of rainforests. I can clear a rainforest, create a product that a brand purchases, and that brand profits without facing any consequences. The deforesting organization operates with impunity, the government remains indifferent, and the displaced communities are largely ignored. The brand benefits financially, while the government collects taxes from the sale, effectively rewarding harmful practices instead of penalizing them.

Moreover, this leads to significant humanitarian issues as people are uprooted from their homes. Farmers are forced to relocate, which you can see in numerous news reports. We’re sacrificing natural habitats for food production and urban development, exacerbating climate change and destabilizing our food supply, ultimately intensifying the humanitarian crisis. Everything is interconnected, making it challenging to encapsulate in a simple explanation.

Aislyn: Yes, it seems quite tangible. While it’s easy to get into the complexities, the core issues are relatively straightforward to comprehend. By the way, I heard you’re establishing a training center for farming. Is that correct?

Craig: That’s correct! This initiative stems from the same group that successfully lifted three villages out of extreme poverty. The next step is to create a training center. Our organizations emphasize training, where farmers come to enhance their skills—much of it focuses on basic literacy and fundamental accounting, enabling them to become entrepreneurs and effectively manage their farm’s profit and loss.

In this project, we plan to establish a training center where farmers will come from surrounding villages rather than building a new village from scratch. At this center, they will have the opportunity to live and be given a plot of land to practice new farming techniques.

If the plot proves to be productive, they can generate income from it. We’ll compensate them for leaving their villages and their farms to learn these techniques. The goal is to equip them with knowledge and allow them to return home to implement what they’ve learned, which enables us to reach a broader audience.

By teaching many farmers at once instead of focusing on one village at a time, we empower them to share their knowledge back in their communities. Many of our organizations also prioritize the education of women and girls, who will learn to manage these programs effectively.

They are taught the “train the trainer” concept, becoming trainers themselves. This helps keep young individuals in their villages, providing them with careers that strengthen the community, curb migration, and ensure the continuity of food production.

Aislyn: Absolutely. Where will the training facility be located?

Craig: This training center will be located in Nicaragua, and for now, most of the farmers will come from Nicaragua as well.

Aislyn: Got it. Is there anything else you think listeners should know about this or your company’s perspective on climate change?

Craig: I’d say the world is quite fascinating at this moment. We encounter a wide range of opinions—from those who support our mission to those who think we’ve fallen for a hoax and deny climate change exists, and everything in between.

From my viewpoint, we’ve created a program that aligns with our values. We firmly believe that climate change is real, and we see no room for debate. Even if there were a debate, I’d prefer to stand before whatever comes next and be able to say, "I recognized an issue and acted accordingly," rather than being indifferent. If someone argues I was misled, that’s fine, but at least I aimed to do what I felt was right and hopefully made a positive impact on the lives of many along the way.

At Rick Steves’ Europe, this is at the heart of our mission. We strive to foster human connections and contribute to making the world a better place through travel.

Just like your company, we’re embracing global citizenship by understanding various issues and striving to improve the world. That’s our mission, and I encourage everyone to hold themselves accountable, act ethically, and take action in whatever way feels right. That’s how we’ll create a better world.

Aislyn: Absolutely! I completely agree. We share similar values. Thank you so much for your time today; I really appreciate it.

Craig: Thank you! I’ve really enjoyed this conversation. I appreciate the opportunity to be here.

Aislyn: Thanks for tuning in, everyone! If you’d like to learn more about the Climate Smart Commitment or support any of the nonprofits mentioned today, head over to ricksteves.com. We’ll include a link in our show notes.

Next week, we’ll chat with a Delta flight attendant about the joys and challenges of flying with kids, and tips on how to manage it all without losing your sanity. It’s going to be a fantastic episode, so be sure to tune in! Also, a quick reminder that season four of Travel Tales by Dinogo launches on Thursday, October 5th, so subscribe now if you haven’t already. See you next week!

Eager for more insights? Head over to Dinogo.com and don’t forget to follow us on Instagram and Twitter.

If you enjoyed today’s journey, I hope you’ll join us again for more captivating stories. You can subscribe to Unpacked on Apple Podcasts, Spotify, or your preferred podcast platform. Please take a moment to rate and review the show; it really helps other travelers discover it.

You’ve been listening to Unpacked, a Dinogo Media production. This podcast is created by Aislyn Greene and Nikki Galteland, with music composed by Chris Colin.

And remember: The world is complex. We’re here to help you navigate it.