|
What happens to money we pay to C3?
In the case of GreenPower your money is used to pay Australian renewable energy generators to feed power into the national grid to replace the energy that you take out. For example if you specify 5 MWh of power in your request to C3 then C3 will pay for that amount of energy to be generated by a project which had been accredited by the state government’s GreenPower authority. This is done through the purchase (and surrender) of Renewable Energy Certificates. Once the GreenPower purchase has taken place the federal government then calculates the amount of carbon saved by that GreenPower generation, then commits to surrender (cancel) a corresponding amount of international carbon permits.
Does all of the money go to the generator?
Approximately 83% of the money goes to the generator. 5% goes to your local environmental organisation. The remaining 12% goes to administrative and transaction costs for C3 and the certified GreenPower provider.
What if I specify Carbon Offsets?
Where you specify carbon offsets the process is similar. Under some international schemes the calculation of the environmental benefit (carbon saved) of a project has already been done before any certificates are issued. The project therefore issues certificates denominated in tonnes of CO2 rather than MWh of energy. These certificates called carbon credits are purchased (and surrendered) by C3 for use in the carbon offset projects.
What are Renewable Energy Certificates?
Renewable Energy Certificates (RECs) are the currency for trading in renewable energy. A REC is issued to a generator through the Office of the Renewable Energy Regulator (ORER) and is proof of 1 MWh of renewable energy generated. These RECs are sold to GreenPower providers in exchange for GreenPower payments.
I have already paid my electricity retailer for the power that I use. If I ask C3 to buy GreenPower for me does this mean I am paying twice for my electricity?
No you will not pay twice for your electricity. The money you have paid to your retailer only covers the standard supply charge. This is calculated at the base or “black” rate that all generators receive regardless of type. GreenPower generators must receive an additional “green” payment to be viable. This payment comes to them via the GreenPower program.
What are Carbon Credits?
Carbon Credits are the currency for trading in carbon (CO2) emissions. One credit is proof that a tonne of CO2 has been abated. Once a credit has been surrendered (cancelled) then it can be claimed as an offset.
What projects do the carbon credits come from?
As of this time there is no method for creating viable carbon credits in Australia, therefore renewable energy projects from developing countries are used. The projects are certified using the Voluntary Carbon Standard (VCS) methodology and as a result Voluntary Carbon Units (VCUs) are the trading currency used.
Within the next two years local projects certified under the Australian National Carbon Offset Standard (NCOS) are expected to become available.
Is C3 a certified GreenPower provider?
No. C3 currently makes its purchases through Australian CO2 Exchange which provides GreenPower services to C3 under the trading name Ark Climate.
Ark Climate is a certified GreenPower provider and has an obligation to the state government’s GreenPower authority to be audited for all sales and renewable energy certificate surrendered. Ark Climate also provides GreenPower for many of the largest corporations and government agencies in Australia.
Is a C3 payment just as effective as purchasing GreenPower through an electricity retailer?
Yes, they are the same thing. In the case of a normal electricity retailer the payments for standard electricity tariff and the GreenPower are simply combined into one bill. Ark Climate is known as a “decoupled” provider. This means that the bills for the standard electricity tariff and the GreenPower payment are separate. This gives you the choice of finding the cheapest standard tariff retailer, while still making the GreenPower payment through C3 and Ark Climate. Decoupled GreenPower can be applied to the supply of electricity in any state in Australia.
What is the relationship between C3 and the Ark Climate Group?
Ark Climate is simply the current provider of GreenPower and offsetting services to C3. We decided to work with Ark Climate during the initial period as it was a well established organisation with a history of promoting innovative renewable energy products and educational services at a local level, and prominent in advocating for better transparency in carbon and GreenPower accounting at a federal level for a number of years.
|
|