Carbon Neutral

Carbon neutral energy explained

If you’re a little confused by the jargon around carbon neutrality, carbon emissions and renewable power, you’re not alone.

Here’s a quick explainer.

Energy and carbon 

The electricity in Australia’s energy grids comes from a range of generation sources, including coal and gas fired power stations, wind farms, solar farms and hydropower.

Some of those generation sources create greenhouses gases: particles that trap heat in the atmosphere, contributing to overall global warming and climate change.

The most plentiful greenhouse gas is carbon dioxide, which is why the word ‘carbon’ is often used when talking about emissions.

Using power from the grid

Unless you're using electricity supplied from solar panels on your roof or some other form of generation at your property, when you use electricity, you’re drawing on electricity that is supplied from the grid by a whole range of energy generation sources, some more carbon-producing than others.

Your power company and distributor can’t control the source of the power you use.

How can carbon emissions be reduced?

While we can’t control what energy sources deliver electricity to your home or business, you can take steps to help reduce the impact on the environment. This could include things like:

• Monitor and manage your energy usage, through Powershop’s market-leading app, to identify opportunities to reduce your energy consumption or move it to times when renewable sources are more likely to be generating.

• Electrify more of your energy usage, which can be done by purchasing an electric vehicle, replace gas heating or hot water systems.

• Purchase GreenPower or install solar panels, and support renewable energy generation.

What about carbon offsets?

Activities that counteract greenhouse gas effects – like planting trees or improving processes so they produce less emissions – can create carbon offsets or certificates under a number of different national and international schemes. These offsets or certificates can then be bought by entities to offset the greenhouse gases produced by their activities or products that they sell. The creation of offsets and certificates generate revenue for carbon abatement projects and encourage further investment in these projects.* Powershop purchases offsets and certificates like these for customers on older plans like the Power Offset and 100% Carbon Neutral plans.^*

See Powershop’s Public Disclosure Statements on the Climate Active website for further information.

^Note that our Power Offset and 100% Carbon Neutral plans are no longer available.  

*CO₂ compensation is not a substitute for switching to lower emission energy solutions or reducing the use of fossil fuels. Carbon offsets are purchased and retired to compensate the calculated lifecycle CO₂e emissions of the product. Although these carbon credits have been generated in accordance with international carbon standards, the compensation may not be exact.