How do you offset your customers' carbon emissions? Luke Morton 09 February 2022 00:58 Updated We offset our customers' carbon emissions via the CDM (Clean Development Mechanism) of the Kyoto Protocol. Specifically, we purchase and surrender sufficient CERs (Certified Emissions Reductions) to match our customers' expected usage over the next year, and purchase additional certificates if our customers' energy use is higher than we initially forecast. These CERs are recognised under the NCOS (National Carbon Offset Standard), making our customers' energy use carbon neutral (aka 'net zero'). How does this fit within your overall emissions reduction strategy? We offset our customers' usage in this way regardless of how few emissions their particular electrical consumption actually causes. This is notable because our customers produce fewer emissions relative to the average consumer, on account of our cultivating the most sustainable energy customer base in the world. We are cultivating this customer base by endeavouring to create energy products and services that encourage both electrification and the maximal use of renewably-generated electricity. Electrifying your homes, businesses, and vehicles will immediately reduce your carbon emissions by avoiding gas, petrol, diesel, and wood-based carbon emissions. Maximising your consumption of renewably generated electricity will reduce your emissions even further. You can do this by using more daytime electricity and less evening and overnight electricity. For example, South Australia's electricity mix is an average 85% renewable at 1pm but only 42% at 7pm. The chart below shows how this variability affects the CO2EII (CO2 Emissions Intensity Index), with CO2EII ranging between 0.1 and 0.4 tonnes per MW (yellow line). So by leaning into our approach to energy consumption you will minimise your carbon emissions, and we will offset your energy use as if you had not. This way you can arguably become a net-negative energy user (although we don't claim that officially). You will also pay less for this cleaner electricity as our daytime energy prices are much lower relative to our evening energy prices. How do CERs actually offset emissions? CERs are tradable units that represent emissions equivalent to one tonne of carbon dioxide (tCO2-e). They are issued when the Kyoto CDM board independently verifies that a sufficient quantity of emissions have been abated or sequestered (i.e. reduced or avoided). The parties that abate and/or sequester their emissions can then sell CERs to counterparties on international markets, creating a reward for reducing and avoiding emissions and an incentive to do so again. As the customers of these CERs, the counterparties effectively finance these emissions-reduction activities. In doing so they counteract the emissions created by their own activities (e.g. consuming energy). Note they must, however, surrender the CERs to be able to claim that they are neutralising their carbon emissions. This then requires them to purchase more carbon offsets to mitigate future emissions. Related articles Is it better to have an all-electric home? Does iO Energy sell GreenPower? Where is your electricity sourced from? Can I apply for a concession to help me pay my invoices? Can renters install smart meters? Comments 0 comments Please sign in to leave a comment.