What does carbon neutral mean?

It means that the greenhouse gas emissions associated with an activity are reduced to be net zero. For a product to be considered carbon neutral, action must be taken to reduce and offset the emissions associated with supplying it to your business.

Keep up to date with the projects we’re investing in at AGL Discover.

Why should I choose Carbon Neutral?

  • Carbon Neutral is certified by Climate Active

  • It's an affordable way to offset emissions associated with the energy supplied to and used by your small business
  • It’s easy – all you need to do is opt into carbon neutral certified electricity, gas, or solar.

  • Our LED lighting products for business include carbon offsets automatically applied.

  • You’re making a difference both locally and globally.

How it works

  • Use your product

    The supply of gas, electricity, solar and energy efficiency solutions creates carbon emissions, which contribute to climate change.

  • cost

    We’ll do the calculations

    We'll calculate the emissions associated with the energy used by your business, or from the physical supply and lifecycle of your solar or energy efficiency solution.

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    We offset these emissions

    How? Through buying and retiring eligible carbon credits from accredited projects to offset these emissions, on your behalf.

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    Together, we make a difference

    We choose offset projects from Australia and around the world that deliver real benefits for the planet. So you know your support is making an impact.

How do I sign up?

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I’m new to AGL

You can add Carbon Neutral to any small business energy plan. Get started by choosing a plan that’s right for you.

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I have an AGL energy plan

It’s easy to add Carbon Neutral by messaging us here or in My Account. You’ll need to be the account holder and have your account number handy.

Carbon Neutral carries over from your existing plan if you move to another AGL contract (unless you move premises).

Let’s look towards tomorrow

We heard you loud and clear, Australia – a sustainable future matters to you. And it matters to us, too.

It’s why we’ve been busy making some of the biggest investments in renewables across Australia. Like investing in local wind and solar farms and battery technology.

While Carbon Neutral is our next step towards a sustainable future, it certainly won’t be the last.

Frequently asked questions

Who's Climate Active?

We're proud to be a part of the Climate Active network.

Climate Active is an Australian network of individuals, businesses and organisations that aim to empower Australians to take climate action now and for the future. The Climate Active network is comprised of certified members across a wide range of industries. This government-backed program enables all levels of Australian society to work together to protect the environment.

Climate Active certification makes it easier for consumers to make a conscious decision to identify and choose certified electricity, gas and other products that are making a difference.

What's carbon offsetting?

Carbon offsetting is one means by which a product may become carbon neutral. Going carbon neutral means taking action to reduce and offset greenhouse gas emissions (including carbon dioxide in the atmosphere), so that the net emissions associated with an activity are equal to zero.

Offsetting gas and electricity

For an electricity product, it involves purchasing the number of eligible carbon offset units that represent an equivalent amount of greenhouse gas emissions to the emissions associated with the generation and delivery of the product. For a gas product, it also involves purchasing units equivalent to the emissions associated with use of the product. This means you compensate for every tonne of CO2 emitted by a product by ensuring there is one less tonne in the atmosphere.

For those that opt-in, we purchase and retire eligible carbon offset units to cover the carbon emissions associated with the generation, delivery and use of gas, and the generation and delivery of electricity supplied to our customers' household or business. We also cover the carbon emitted as a result of our own business’ everyday activities, such as travel, power usage, etc.

Offsetting commercial solar and energy efficiency products

When you buy a carbon neutral commercial solar, battery or energy efficiency product from us, we'll purchase and retire carbon offsets to cover the emissions created from the supply and lifecycle of the physical product. This includes emissions from activities like manufacturing processes, freight, installation, AGL’s retail operations associated with offering the product and disposing of it at the end of its useful life.

What's a carbon offset unit?

Carbon offsets are units or ‘credits’ that represent reductions or removals of greenhouse gas emissions from the atmosphere.

An eligible carbon offset unit may be created by undertaking certain projects, which have the effect of removing greenhouse gas from the environment. Each eligible carbon offset unit represents the removal of one tonne of carbon dioxide equivalent (tCO2-e) from the environment.

How do we choose which carbon offsets to purchase and retire?

We employ a rigorous selection process when it comes to the eligible carbon offsets we purchase. The eligible carbon offsets meet the integrity requirements under the Climate Active Carbon Neutral Standard to ensure they represent genuine abatement. There are many different offset methodologies - some examples include reforestation, renewable energy or energy efficiency projects that generate eligible carbon offsets. Many of these projects also provide other positive environmental or social benefits.

We have purchased eligible carbon offset units from accredited projects, including Australian carbon credit units (ACCUs) and Gold Standard Verified Emissions Reductions (GSVERs).

You can find more information on the types of eligible carbon offsets and the projects we invest in by reading our public disclosure statement.

What does it mean to retire carbon offsets?

Eligible carbon offset units are purchased from domestic and international carbon markets and then retired. It’s important to retire offsets to ensure that the emissions reduction they represent is not double counted. Double counting refers to the same single greenhouse gas emission reduction or removal being counted more than once to show compliance with mitigation targets (possibly across different regulations).

How do carbon offset projects work?

When you opt-in to Carbon Neutral certified energy, you’re supporting projects that reduce greenhouse gas (GHG) emissions. These projects may involve initiatives such as restoring forests, developing clean cookstove technology, fire management, updating or creating new renewable energy infrastructure such as solar and wind farms, landfill gas (methane) or carbon capture.

How do I keep up to date with what projects are being invested in?

We’ll keep you up to date on the projects from time to time via email, or you can visit AGL Discover at any time to find out more.

What else are we doing to address climate change?

As Australia’s largest and oldest integrated electricity generator and retailer, we play a vital role in the wider transition.

AGL’s Climate Statement sets out our commitment to our decarbonisation journey, and commits AGL to action in five areas to further evolve our energy transition plans:

  • Offer customers the option of carbon neutral across our products.
  • Support the evolution of Australia’s voluntary carbon markets.
  • Continue investing in new sources of electricity supply.
  • Responsibly transition our energy portfolio.
  • Be transparent.

We are already on the path to achieving our target of net zero emissions by 2050, and our five commitments will ensure we responsively and responsibly harness the power of our customers, community and technology to get there.

How much does Carbon Neutral cost?

For small business customers, you can add Carbon Neutral to your electricity plan for only $4 a week (GST incl.) and to your gas plan from $7 (GST incl.) a week.

For our energy efficient LED lighting products, carbon neutral is included in the price. And if you opt-in to carbon neutral for Solar, your carbon neutral price will depend on the specifics of the system you install.

Does the Carbon Neutral cost include GST?

Yes, it includes GST.

Can I add Carbon Neutral to my current energy plan?

You can add Carbon Neutral to any of our business electricity and/or gas plans, including our solar plans.

If I move premises, do I still have carbon neutral certified electricity and gas activated on my account?

If you move premises and connect with AGL there, you will need to add Carbon Neutral at the new premise. It’s quick and easy to set up, you can do it online or by speaking with one of our specialised business agents over the phone.

When will my weekly contributions start?

Within 10 business days of opting into Carbon Neutral.

How can I cancel my Carbon Neutral weekly contributions?

You’ll need to contact us to opt out at 133 835.

I want to change energy plans. Do I have to add Carbon Neutral again to my new plan?

No, it’ll carry over from your existing plan if you move to another AGL plan (unless you move premises).

I have opted into Carbon Neutral – why hasn’t my contribution appeared on my next bill?

Although contributions will start within 10 business days of opting in, they might not show on your bill for up to 6 weeks.

How is Carbon Neutral different to Green Energy?

Think of Carbon Neutral as the same energy that you buy today, except the key difference is we reduce and offset the emissions associated with the energy supplied to and used by your business.

Green Energy is another green and sustainable option available for AGL customers, where customers nominate a portion of their household electricity consumption and AGL sources the equivalent portion from renewable energy sources. It's not available for gas plans. The cost of Green Energy varies depending on the amount you choose and how much electricity you use. Learn more about Green Energy.

Aren't I already reducing my carbon footprint by purchasing solar and/or energy efficient solutions? Why do I need Carbon Neutral for these products?
By purchasing a solar, battery, power factor correction or LED lighting solution you've already taken a great step toward lowering greenhouse gas emissions by reducing your reliance on grid electricity to power your business. With a certified Carbon Neutral product, you are further reducing your business’ carbon footprint by offsetting emissions associated with activities like the manufacturing, installation, maintenance and end-of-life disposal of the product.

Have more questions?

You can contact us by email or chat, or call us on 133 835.