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Carbon offsetting explained

Making conscious lifestyle changes can help to reduce your carbon footprint.

As consumers, it can be overwhelming to understand how to go about reducing and offsetting your carbon footprint.

What is a carbon footprint and carbon offsetting?

A person’s carbon footprint is the quantity of greenhouse gases caused both directly and indirectly by the individual. Individuals contribute to their carbon footprint through everyday activities by doing things like using power, travelling to and from work in vehicles, and consuming food that results in greenhouse gas emissions through its production, packaging, transport and sale.

Everyone has a carbon footprint, but there are opportunities to reduce your individual footprint by making small changes in day-to-day life. Many of these choices can positively impact your bank accounts, health and fitness too, including through reducing your energy usage where you can, eating fresh local veggies or riding a bike to run errands near home.

To address some of the residual emissions that remain (being your residual carbon footprint – the emissions that remain due to limited options to eliminate or reduce them further), individuals can also participate in carbon offsetting programs.

Emissions Offsetting

Your products and services are supplied in different ways, some generating more greenhouse gas emissions than others.

We purchase eligible carbon credits to offset the products and services we offer, sourced from projects that reduce or remove greenhouse gases. 

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Carbon offsets are generated from carbon offset projects that reduce, sequester, or avoid greenhouse gas emissions being released into the atmosphere. Each carbon offset unit represents one tonne of greenhouse gas emissions (measured in tonnes of carbon dioxide equivalent (tCO2e)) reduced, sequestered or avoided from being released into the atmosphere. There are many projects that generate carbon offsets, and which can provide additional environmental or social benefits, including reforestation, renewable energy or energy efficiency projects.

Carbon offsetting occurs when carbon offsets are purchased and surrendered to help compensate for the greenhouse gas emissions produced by an activity, business or organisation. Common examples include things like choosing to offset emissions associated with your electricity and gas, your flight bookings, and even the miles travelled by your parcels when you shop online. For an electricity product, this includes emissions associated with the generation and supply of electricity to the home or business. For a gas product, this could include the emissions associated with the extraction, production, storage, supply or use of gas.

How does AGL use carbon offsets for its Carbon Neutral products?

AGL employs a rigorous selection process when choosing carbon offsets to purchase and surrender on behalf of our customers. Our Carbon Neutral products, certified by Climate Active, meet the integrity requirements under the Climate Active Carbon Neutral Standard. We purchase carbon offsets from a selection of projects, including Australian Carbon Credit Units (ACCUs), Gold Standard Verified Emissions Reductions (GSVERs) and Verified Carbon Units (VCUs).

Individuals or business owners can choose to opt into Carbon Neutral electricity and gas certified by Climate Active. For individuals, Carbon Neutral can be added to an electricity plan for $1 a week (GST incl.) and to a gas plan for $0.50 a week (GST incl.).

Why offset my carbon footprint?

As an individual or business owner, there are lots of things you can do to reduce your carbon footprint. You may choose to limit travel, start cycling to work, choose energy-efficient appliances or install solar.

You can also use carbon offsetting to offset residual emissions. For AGL’s Carbon Neutral products, AGL uses carbon credits from carbon offset projects. 

Want to offset the estimated carbon impact associated with your home energy use?

We offer Carbon Neutral options certified by Climate Active on our energy plans, so you can offset the component of your carbon footprint associated with your home's energy usage.

For internet, mobile, solar and battery products and plans, Carbon Neutral is included for no extra charge.

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