Carbon FAQs

To make it easy for you we’ve arranged the FAQs into these categories.


Environmental Context

1.1 What is global warming and climate change?

The greenhouse effect is a natural phenomenon, where gases including water vapour, carbon dioxide (CO2) and methane (CH4) build up in the lower atmosphere trapping heat to maintain a stable temperature that allows life on earth to flourish.

Excessive production of greenhouse gases from activities such as burning fossil fuels, land clearing and increased farming, results in more heat being trapped in the atmosphere believed to be causing average temperatures to rise, and global warming. This global warming is evidenced by changes to our environment and weather patterns and, if left unchecked, could seriously affect life on our earth.

1.2 How do we know that global warming is real?

There is little argument that our earth’s climate is changing and that average global temperatures are rising. The IPCC’s 4th report on climate change recently moved its rating of the likelihood of the warming arising from anthropogenic (human) activity from likely to very likely.

1.3 What are greenhouse gas emissions and where do they come from?

Greenhouse gases include gases such as carbon dioxide and methane, and when released into the atmosphere, act like a blanket and trap the sun’s warmth. Human actions – particularly the burning of fossil fuels (such as coal, oil and natural gas), land clearing and farming are increasing the concentration of these gases or emissions, creating the prospect of significant global climate change. This is known as the enhanced greenhouse effect.

Just about everything you do on a daily basis from turning on your lights to driving to work to the consumer goods you purchase, either directly or indirectly contributes to the enhanced greenhouse effect.

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Carbon Offsets

2.1 What are carbon offsets?

Carbon offsets are a way for individuals and organisations to compensate for their own greenhouse gas emissions by paying for others to undertake emission reduction programs. Carbon offsets are generated from projects and initiatives that actually reduce greenhouse gas emissions. One tonne of carbon offset activity represents one tonne of CO2-e (carbon dioxide equivalent) that has been prevented from entering the atmosphere and contributing to global warming and climate change, or in the case of trees it represents one tonne of CO2-e that’s sequestered from the atmosphere. When you pay us to offset one tonne, we undertake to either arrange for one tonne of CO2-e emission reduction to occur, or to purchase an undertaking from a third party that one tonne of CO2-e emission has or will occur.

2.2 What does CO2-e or carbon dioxide equivalent mean?

There are several different greenhouse gases (e.g. methane) as well as carbon dioxide and each has a different strength of effect on global warming. Carbon dioxide equivalent takes into account the different global warming potential of different greenhouse gases and expresses the cumulative effect in a common unit. Carbon dioxide equivalent is calculated by multiplying the actual mass of emissions by the appropriate Global Warming Potential (GWP) factor. This enables emissions of different gases to be added together and compared with carbon dioxide.

2.3 What are carbon credits?

Carbon credits represent greenhouse gas emissions either being prevented from entering the atmosphere or reabsorbed from the atmosphere from projects such as improved technology or forest planting. Usually measured in tonnes of carbon dioxide equivalent, they form a basic unit/tradeable commodity of a carbon market. A carbon credit is sometimes also defined to represent a carbon reduction that is independently accredited to ensure that a tonne of CO2 equivalent from one project is the same as a tonne of CO2 equivalent from another project so they can be traded.

The term ‘carbon credit’ is sometimes used interchangeably with ‘carbon offset’.

2.4 What does the term “carbon neutral” mean?

The result of reducing the emissions generated from an activity or entity to zero through a combination of measures including:

  • Reducing emissions at source for example through using energy more efficiently
  • Replacing polluting energy sources with clean renewable sources
  • Offsetting emissions by reducing an equivalent amount of carbon elsewhere.

In the absence of a global standard on what it means to be carbon neutral, there is currently debate on the scope of the emissions should be. For instance, should this include only energy consumption, vehicle related fuel consumption and air travel - or also waste, water and consumables? If individuals want to make a carbon neutral claim they must be clear and transparent about what calculations and assumptions they have used to measure their carbon footprint and what actions support their intentions to be carbon neutral. For example, a soft drink company who wants to make a carbon neutral claim must be clear about whether its claim only covers the emissions associated with the processing of the liquid, or whether it also covers the manufacture of the bottles and cardboard packaging and recycling (life-cycle emissions associated with its product).

2.5 Why do carbon offsets help our environment?

One tonne of carbon offset activity represents one tonne of CO2-e (carbon dioxide equivalent) that has been reduced from the atmosphere and believed to accelerate climate change. Purchasing carbon offsets helps to channel funding towards new industries and energy solutions required for a low carbon world.

2.6 Are carbon offsets just a license to pollute/way to alleviate guilt?

There is no single solution to preventing and slowing climate change. Purchasing carbon offsets is one part of a wider range of initiatives which includes:

  1. Reduce - look for opportunities to reduce energy consumption such as switching off your lights
  2. Replace - use fuel alternatives with low or no emission options such as Origin government accredited GreenPower
  3. Offset – your remaining emissions that can’t be reduced or replaced, for instance through activities such as car or air travel. Purchasing offsets is something quick and easy that you can do today that will reduce your greenhouse gas emissions.

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Purchasing Carbon Offsets

3.1 How can I offset my greenhouse gas emissions?

In less than 15 minutes online you can offset your electricity, gas usage, car fuel consumption and/or air travel emissions. You do this by paying us to arrange for emission reductions to occur, to an amount equivalent to the estimated emissions for which you purchased offsets.

3.2 What do I need to complete a transaction?

It may help to have your recent electricity or gas bill handy as it will generally display your average daily kWh or MJ consumption. You’ll also need your credit card (we accept Visa, MasterCard, AMEX or Diners) and we’ll take care of the rest.

3.3 How long am I offsetting emissions for?

It is difficult for us to confirm how long you are offsetting for, as there are a number of factors that are used in determining length. It’s ultimately up to you to determine what you allocate the offsets to and over what time frame.

3.4 What is the difference between calculating my emissions and purchasing by the tonne?

There are two ways you can offset your emissions on the Go Green Calculator™. You can either: Calculate your emissions

Calculate your emissions

The Go Green Calculator™ gives you an estimate of how many tonnes of greenhouse gas you emit, and the cost to carbon offset. You can calculate the estimated amount of emissions and purchase offsets based on your:

  • Estimated energy use or enter a selected daily usage amount in kWh for your electricity or MJ for gas
  • Average flights (air miles) per year, or individual flights based on the kilometres you travel
  • Car fuel consumption for one year, based on your individual car type and the kilometres that you drive
  • or any combination of the above.

Offset by the tonne

  • Use the 'purchase by the tonne' option to nominate the number of tonnes you would like to carbon offset. You may even consider purchasing carbon offsets that are equivalent to the average Australian’s annual emissions.

3.5 Do I need to be an Origin customer to purchase offset emissions?

No you do not need to be our customer to purchase offsets. Everybody can use our Go Green Calculator™ to offset their greenhouse gas emissions.

3.6 I have a voucher code, how do I use this?

Use the Go Green Calculator™ to calculate your emissions. When you progress to the 'Your Details' section, simply enter the code in the 'Voucher Code' field.

3.7 Can I calculate my emissions or use the voucher outside of Australia?

Yes, you can use the voucher outside of Australia. However, it should be noted that our Go Green Calculator™, apart from air travel calculations, applies emission factors released by the Australia Greenhouse Office. The outcome of the emission calculation for activities conducted outside Australia can only be as a guide.

3.8 What will I receive for my carbon offset purchase?

You will receive an online certificate confirming the details of your purchased offset activity and a tax invoice that we’ll email to your nominated address.

3.9 Will I receive a receipt / tax invoice?

Yes, a receipt/ tax invoice will be emailed to your preferred address once your transaction is complete.

3.10 Why don’t I get a confirmation by regular mail?

To make this process efficient whilst minimising waste potential we have chosen to only use electronic delivery.

3.11 How do I know if my payment has been received?

The confirmation page on our Go Green Together™ will provide you with a payment confirmation number and at the same time you will receive an email with your payment confirmation and certificate.

3.12 How do I know the payment process is secure?

We use SecurePay to process payments, which is a reputable payment processing supplier using the most safe and secure online payment processes. SecurePay use a 128-bit digital server certificate provided by Verisign™.

3.13 Is there a dollar limit that I can offset?

Yes, the maximum spend limit on this website is $5,000 (including GST) per transaction. If you wish to purchase more than $5,000 of offset activity, please call us on 13 23 34.

3.14 I’m an Origin customer, can I pay for this purchase through my bill?

At this point in time, carbon offsets cannot be paid via your energy bills.

3.15 Is my carbon offset purchase tax deductible?

We’re not qualified to give tax advice and we recommend that you take this issue up with your own accountant.

3.16 Do I have to do anything with my carbon offset now that I have bought my offset?

No, we surrenders the carbon credit through the Carbon Reduction Scheme™ on your behalf. This ensures that the carbon cannot be used again (or double-counted) or traded by anyone else.

3.17 What is considered a 'large' business?

For the purpose of this website, a large business’ annual spend on electricity is greater than $15,000 or gas greater than $50,000. If you fit into this category, please read about carbon offsetting for large business.

3.18 Why use our Go Green Calculator™ site?

  • Our website is a virtual shop that reduces all major emission sources including electricity, gas, car and air travel.
  • When you purchase carbon offsets with us you are helping to reduce your impact on the environment, encouraging beneficial carbon projects and technologies which help to develop long term solutions to climate change.
  • We only invest in 100% independently verified projects using recognised Australian and International standards.
  • We’re one of Australia’s leading energy companies servicing over 3 million customers and we’re proud to be acknowledged as Australia’s number one green energy provider.
  • Purchases are made instantly via a secure credit card facility at this site.
  • You do not need to be our customer or have an account with us to purchase offsets.
  • You do not need to sign up to a contract.

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Gift Certificates

Refer to our gift certificates page

The Calculations

5.1 Air travel:

To estimate your greenhouse gas emissions from your air travel you can either enter the number of kilometres you travel by air (if you know it) or use the calculator to measure it for you. For simplicity we have split the world into zones but you can still select any Australian capital city. The distance is measured from your chosen capital city to an airport near the mid point of the international zone or another selected Australian capital city.

Greenhouse gas emissions created by air travel are calculated two ways:

  • Emissions based on the amount of fuel that is consumed per kilometre
  • Emissions based on the burning of fuel then multiplied for the increased global warming impact - also referred to as Global Warming Potential (GWP).

Why does the GWP calculation method result in larger emissions?

  • Emissions located in the upper atmosphere trap more heat and consequently contribute more to the global warming effect. Only some emissions released at ground level reach the upper atmosphere, where as significant air travel emissions are released in the upper atmosphere.
  • Air travel emissions include high levels of nitrous oxide and other greenhouse gases in addition to carbon dioxide (CO2). Nitrous oxide and other greenhouse gases have high global warming potential because they turn into ozone, vapour trails, and ice clouds at high altitude.

Sources:

Emission factor provided by Australian Greenhouse Office (2006) Australia’s National Greenhouse Gas Inventory, 1990-2006, Canberra.

5.2 Car travel:

To estimate the greenhouse gas emissions from your car use you will need to estimate:

  • The number of kilometres you drive in a year or for the individual trip
  • The type of fuel that your car consumes (petrol, diesel or LP Gas); and the engine size of your car.

We then combine this information with the Australian Government Department of Climate Change emission factors to estimate your emissions.

Sources:

All emission co-efficients are for the full fuel cycle taken from the Australian Government Department of Climate Change "National Greenhouse Accounts (NGA) Factors" - January 2008.

Australian Bureau of Statistics, Survey of Motor Vehicle Use, 31st Oct 2006, p9

Australian Greenhouse Office, Studies on Factors Impacting on Australia's National Fuel Consumption Levels to 2010, June 1999

5.3 Electricity and gas use:

To determine your consumption you can either use your current average daily consumption, which you can find on your electricity or gas bill, or we can estimate your consumption by answering a few simple questions. We then combine this information with specific emission factors based on the state of Australia you live in, and calculate your emissions.

Sources:

All emission co-efficients are for the full fuel cycle taken from the Australian Government Department of Climate Change "National Greenhouse Accounts (NGA) Factors" - January 2008.

Other sources:

Denvir, P., Cost Effective Policies to Reduce Greenhouse Gas Emissions from Non-Residential and Residential Buildings, Australian Greenhouse Office, 1999.

Australian Greenhouse Office, Australian Residential Building Sector, Greenhouse Gas Emissions 1990-2010, 1999.

Engineering and Management Consultants, Sustainable Energy Authority of Victoria , Energy Efficiency Improvement in the Residential Sector, April 2004.

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Origin’s Carbon Reduction Scheme™ Offsets and Accreditation

6.1 What is Origin’s Carbon Reduction Scheme™?

Origin’s Carbon Reduction Scheme™ is a framework which provides a range of effective and affordable solutions to reduce greenhouse gas emissions.

Building on one of Australia’s largest carbon portfolios and our market leadership position for GreenPower, our innovative voluntary Carbon Reduction Scheme™ aims to:

  • Encourage activities that reduce greenhouse gas emissions and create carbon credits.
  • Enable the development of a range of carbon offset products/projects and ensure that sufficient greenhouse gas emissions associated with those products/projects have been reduced.

6.2 How does this scheme work?

When you choose to offset emissions associated with your lifestyle activities, we undertake to create or source emission reductions from verified projects that prevent or reduce greenhouse gas emissions releasing into the atmosphere.

Anchored by a robust and independently audited Governance Structure, the Carbon Reduction Scheme™ sets a transparent and credible standard for voluntary carbon offsets. The Structure and Rules of the Carbon Reduction Scheme™ have been developed with the advice of St James Centre for Ethics and the Australian Conservation Foundation. Three levels of independent audits are used to ensure each step of the process is independently verified and validated.

6.3 When I offset my emissions, where does my money go?

Our commitment is to undertake projects, or to purchase certificates from others who undertake projects, that reduce greenhouse gas emissions, and are additional to government commitment requirements.

6.4 Can I choose which projects my purchase goes towards?

Your money will contribute towards one or more of the projects which make up Origin’s Carbon Reduction Scheme™ - you cannot nominate a particular project at this point in time. For more information refer to where does my money go.

6.5 I’ve heard tree-planting is a questionable offset activity, is this true?

Most greenhouse gas reductions from trees occurs over time, therefore, if you purchase a tree-based offset today, you’re likely to be sponsoring a reduction that won’t be complete until 2050.

The Carbon Reduction Scheme™ limits tree-planting or bio-sequestration to 10% of its project portfolio.

Planting trees provides only a partial answer to the problem of climate change – a more critical approach is to undertake abatement projects that invest in overall emissions prevention is critical.

6.6 Why did Origin develop its own Carbon Reduction Scheme™?

We developed our Carbon Reduction Scheme™ inline with our commitment to sustainability and have a deep understanding of carbon markets. Due to our significant compliance and accreditation expertise and our involvement in all regulatory and voluntary carbon schemes in Australia, we are now considered to be a credible and reputable supplier and the leading provider of green energy in Australia.

We believe more can and should be done to encourage participation in energy efficiency and carbon reduction activities. The development of our scheme aligns with our position as a founding member of the Business Roundtable on Climate Change, that early action on climate change is essential.

6.7 How credible is Origin’s Carbon Reduction Scheme™?

Our Carbon Reduction Scheme™ sets a benchmark for offset provider credibility in Australia, which ensures that:

  • All carbon offset projects and products are independently validated and verified to an independent offset standard by a reputable auditor. For example the calculations that sit behind the Go Green Calculator™ have been independently verified
  • All offset sales are independently verified by a reputable auditor to confirm that we’ve purchased and retired the correct volume of offsets on behalf of our customers and that warranties are in place to make sure that abatement is not double counted.

6.8 Is Origin’s Carbon Reduction Scheme™ independently audited?

An independent audit is regularly conducted by a reputable auditing firm to verify that the offsets have met our stringent standards and principles, and that the amount of offsets undertaken or purchased by us equals or exceeds our offset commitments to our customers (measured in tonnes of CO2-e). An Assurance Report by the Auditor will be publicly reported on our website and emailed to our customers if requested. This means you can be confident your money is really making a difference.

6.9 How has Origin determined the carbon offset price?

There are a number of factors we consider in setting a price for our carbon offsets, it reflects the price that we can secure and create verified offsets in the market. We aim to keep our offsets affordable so sustainability is within the reach of all individuals.

6.10 Does Origin make a profit in selling offsets?

We make an appropriate profit from administrating and promoting customer awareness in regards to reducing greenhouse gas emissions.

We believe all businesses including ourselves should have financial incentives to promote and convince customers to select and purchase sustainable products.

6.11 Are the projects in Origin’s Carbon Reduction Scheme™ accredited under any other programs?

The Carbon Reduction Scheme™ aggregates different abatement projects that are accredited under various accreditations, including the Greenhouse Friendly program and the Voluntary Carbon Standard. As of February 2008, all new projects accepted into the Carbon Reduction Scheme™ portfolio must be tested against an independent standard.

Origin surrenders the certificates from these projects to the respective scheme administrators to ensure that they are not on-sold to more than one customer.

6.12 What are our project commitments?

Our commitment is to purchase carbon certificates from projects that reduce greenhouse gas emissions and are additional to government regulation and are independently verified.

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GreenPower Offsets

7.1 What is GreenPower?

When your purchase offsets for electricity use, offsets are sourced from 100% government Accredited Origin GreenPower, which is accredited under the rules of the National GreenPower Accreditation Program. GreenPower offsets come from new renewable sources such as wind and solar power, rather than coal fired power stations. Accredited GreenPower is electricity produced from a new renewable generation source, built after 1997.

7.2 Why do flight, car and gas offsets come from the Carbon Reduction Scheme™ and electricity offsets through GreenPower?

We choose to proactively support the development of the renewable energy industry by only providing the option to use GreenPower offsets for electricity consumption.

Offsets for other activities go towards projects which make up the Carbon Reduction Scheme™ and include a mix of renewable energy as well as other solutions like energy efficiency and sequestration.

7.3 How can I be sure that Origin buys the correct amount of GreenPower on my behalf?

In order to be an accredited GreenPower provider, we must undertake an annual audit to show that we are buying enough GreenPower to match the amount of GreenPower purchased by our customers.

7.4 I already have GreenPower/Green gas for my home - what does this mean in relation to the amount of carbon offsets that I purchase?

The GreenPower you have for your home electricity use varies according to what you’ve nominated under your energy contract agreement (for example 25%, 50% or 100% GreenPower). Depending on this percentage, our calculator allows you to purchase additional GreenPower offsets to supplement your current GreenPower percentage.

If you have Green Gas, we already offset 100% of your home’s gas related emissions through emissions reduction programs on your behalf, so there’s no need to purchase more offsets for your gas consumtion through the Go Green Calculator™.

7.5 In which Australian States can I choose to buy Origin GreenPower and Green Gas?

Origin government accredited GreenPower and Austrlia’s first Origin Green gas is currently available in Victoria, South Australia, Queensland and New South Wales.

7.6 Impact of Australia’s Kyoto ratification and Carbon Pollution Reduction Scheme on voluntary carbon products

Voluntary carbon products, namely GreenPower and offsets, support renewable energy investment and technologies that reduce emissions. In the event of Kyoto ratification in 2008, purchases of these products currently help Australia to meet its Kyoto emissions target. Origin believes it is important that voluntary GreenPower and offsets be able to contribute additional emissions reductions at a national level. At this point in time it is uncertain how the Australian Government will treat voluntary carbon alongside Australia’s Kyoto commitments and the introduction of the Carbon Pollution Reduction Scheme (CPRS) in 2010. The Government is currently developing an Australian voluntary carbon standard that will address this issue. This is expected to be finalised in early 2009.

Origin is committed to engaging the Government with a view to enabling voluntary carbon products to be additional to regulated targets. http://www.carbonoffsetwatch.org.au/images/voluntaryoffsetcommunique291008_final.pdf

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Origin’s Environmental Credentials

8.1 Does Origin purchase voluntary carbon offsets for its business operations?

Yes, we purchase voluntary GreenPower and carbon offsets for our business operations.

In 2004-2005:

  • Zero energy consumption related emissions from our non-energy producing sites (Australian offices, shops, LP Gas terminals and SLIVER® solar manufacturing plant) through purchase of GreenPower and/or offsets.

In 2006 - 2007:

  • Offset or reduce all greenhouse gas emissions from our non-energy producing sites using a mix of carbon offsets and GreenPower.
  • Offset all company air miles and company owned fleet vehicle fuel
  • Salary packaged vehicle owners have opportunity to offset their vehicle emissions through the Go Green Calculator™ .

In 2007 these initiatives equalled a total of around 40,000 tonnes saved. See Origin’s 2007 Sustainability report for more information.

8.2 What are Origin’s ‘environmental’ credentials?

We are a founding member of the Australian Business Roundtable on Climate Change and winner of Ethical Investor’s Sustainable Company of the Year 2007.

We also contribute to a range of other initiatives.

Investment in new renewable energy and emission reduction:

  • Investments in Geodynamics and Solar PV (SLIVER® technology) manufacturing
  • Power Purchase Agreements with four commercially operating wind farms

Zero and low emission Products and Services:

  • GreenPower market leader (~350,000 customers)
  • Only energy retailer selling Green Gas and LP Gas with built in offsets
  • Retail solar electricity, solar hot water and electricity buy back arrangements
  • Retail rainwater tank solutions
  • Provide one year offsets on selected Origin Shop appliances at no extra cost
  • Provide education programs to schools in SA and VIC
  • Provide consumers with web-based advice on energy efficiency
  • Set up Carbon Reduction Scheme™ to promote emission reduction activities

Other credentials include:

  • Adelaide Solar Cities joint initiative with the Australian Government
  • Live Earth Sydney carbon reduced event
  • Cool the Globe Challenge in conjunction with Channel 7’s Sunrise
  • Victorian Commonwealth Games - provided 100% GreenPower
  • Landcare Tree Planting - during 2006 we planted 100,000 trees to say ‘thank you’ to its GreenPower customers
  • Murray-Darling Basin fish release - released 250,000 native fish into the Murray-Darling Basin to celebrate our first 250,000 GreenPower customers.

8.3 Has Origin won any awards for the Carbon Reduction Scheme™?

The Carbon Reduction Scheme™ was a 2007 Finalist in the United Nations of Australia Awards (UNAA) “Meeting the Greenhouse Challenge”.

For the fourth consecutive year, we have received top accolades in a leading environmental report by Green Electricity Watch, a coalition of three of Australia’s leading environmental organisations – the Australian Conservation Foundation, Total Environment Centre and WWF Australia.

Our 100% Solar, 100% Wind and 100% Wind Offset products have received the top three placings in the 2007 Green Electricity Watch.

For more information about this report:

We have also been recognised for our leadership and commitment to sustainability as winner of Ethical Investor’s Sustainable Company of the Year 2007.